Key facts
- Microsoft, Amazon, and Google emitted 119 million metric tonnes of CO2 equivalent in the year ending March 2026.
- This represents a 19% increase from the previous year's emissions of approximately 101 million metric tonnes.
- The rise in emissions is primarily attributed to the expansion of datacentre infrastructure to support AI services.
- Microsoft's emissions increased by 25%, Google's by 18%, and Amazon's by 16%.
Microsoft, Amazon, and Google have collectively seen their carbon emissions rise by nearly a fifth in the past year, reaching 119 million metric tonnes of carbon dioxide equivalent in the financial year ending March 2026. This increase, largely driven by the construction and expansion of datacentres to support the burgeoning demand for AI services and cloud computing, marks a significant reversal from previous years' efforts to reduce their environmental impact.
Microsoft reported a 25% increase in its emissions, Google 18%, and Amazon 16%. Experts like Cecilia Rikap, an economics professor at University College London, suggest that claims of ecologically friendly cloud services are primarily marketing strategies, and that companies are effectively outsourcing their digital carbon footprints to these cloud giants. Shaolei Ren, a professor at the University of California, Riverside, noted a strong correlation between the companies' AI investments and their rising total carbon emissions.
The global push for AI infrastructure is fueling a boom in datacentre construction. JLL, a property consultancy, anticipates approximately 1,200 new datacentres globally by 2030, predominantly driven by AI demand. The Uptime Institute estimates that major datacentre projects announced last year could consume 1.3% of the world's electricity, nearly doubling current datacentre energy consumption, with a majority of this new demand originating from U.S. projects.
While the companies maintain their net-zero emission goals—Microsoft and Google by 2030, and Amazon by 2040—the current trajectory indicates a significant challenge. Professor Ren also pointed to a potential scarcity of carbon credits on global markets, which could further complicate efforts to offset emissions.