Big tech's lofty climate goals damaged by energy-hungry AI

Technology companies like Google and Amazon are finding it harder to meet their promises to be carbon neutral because of their large investments in artificial intelligence (AI). Both companies recently released their yearly reports on sustainability. These reports showed that their carbon emissions have increased significantly.

This rise in emissions is largely due to the huge amount of energy needed to power the AI computer systems and the data centers that support them. Building new data centers and using more electricity for AI services have all contributed to the problem. Google’s total carbon emissions went up by 25% compared to the previous year, and Amazon’s increased by 16%.

Google acknowledged that the growing energy and water needs of AI create a difficult situation. The company stated that the environmental impact of data centers used for AI is increasing. This means they face a double challenge: managing this environmental impact while also building the necessary infrastructure to meet the growing demand for AI and unlock its full potential. Similarly, Amazon admitted that their journey to become more sustainable is not simple and their emissions rose in 2025, but they remain committed to their sustainability goals.

For many years, Google, Amazon, and Microsoft have presented themselves as leaders in environmental efforts within the tech industry. They set ambitious goals to achieve net-zero carbon emissions and invested heavily in renewable energy sources such as wind and solar power. However, as these companies compete intensely in the AI race, their stock prices depend on successfully integrating AI technology. This requires vast amounts of energy, which has sometimes taken priority over their sustainability commitments, leading to a softening of their emissions promises.

Microsoft’s 2025 sustainability report showed a 23% increase in emissions from its 2020 levels. With increased investment in AI infrastructure since last year, its upcoming report is likely to show a similar or even larger rise. Meta’s emissions jumped by 64% in 2025, despite its pledge for net-zero emissions by 2030. To provide the extra power needed for their AI data centers, all four companies have also begun using electricity generated from fossil fuels, signing agreements for large amounts of gas-generated power in several US states.

The increased reliance on fossil fuels by the tech sector might not be temporary. A recent report highlighted plans for 74 new natural gas power plants across the US specifically to serve data centers. These plants are estimated to release a significant amount of greenhouse gas pollution annually, comparable to the total emissions of Australia.