AI-driven Datacenter Builds Increased Microsoft's Emissions 25% In One Year

Microsoft released its 2026 Environmental Sustainability Report showing that last year it matched its entire electricity consumption with renewable energy, reports The Register.

"The bad news is it also increased greenhouse gas (GHG) emissions by 25%" - mostly due to datacenter construction and a decision to stop purchasing some renewable energy certificates.

Emissions Trajectory

In 2020, Microsoft set itself the goal of becoming "carbon-negative" by 2030. Its own figures show emissions heading only upwards, from 13 million tons of CO2 equivalent in 2020, to 20 million tons in 2025.

However, Microsoft estimates that without the carbon reduction initiatives it has already put in place, emissions would now stand at 34 million tons.

Water and Hardware

For the first time, Microsoft claims to have replenished more water than it withdrew during 2025, returning 14,278 million liters (3,771 million gallons).

Elsewhere, the corporation says its Circular Centers program reused 92% of decommissioned servers and their components.