Microsoft's Carbon Emissions Increase by 30% Since 2020 Due to Data Center Expansion

Microsoft's carbon emissions have increased by 30% since 2020, driven by the expansion of its data centers. This growth highlights the challenge of balancing technological advancement with sustainability, as the company navigates its environmental impact amid rising demand for cloud services and data storage.

‍KEY POINTS

• Microsoft's carbon footprint has grown by 30% since 2020, mainly due to indirect emissions from data center construction.
• To tackle this issue, the tech company will mandate that certain suppliers use 100% carbon-free electricity by 2030.
• The expansion of energy-intensive data centers poses a challenge to tech companies' ambitious goals of eliminating their carbon footprints.

Microsoft's total carbon emissions have increased by nearly 30% since 2020, mainly due to the construction of data centers, the company stated in its annual sustainability report on Wednesday.

According to the report, Microsoft's Scope 1 and 2 emissions—generated from the company's activities and its consumption of electricity or heat—decreased by 6.3% in 2023 compared to 2020.

However, its indirect emissions—arising from all other activities Microsoft engages in—increased by 30.9% over the same period.

Microsoft's total carbon emissions have risen by nearly 30% since 2020, primarily due to the construction of data centers, the company revealed in its annual sustainability report on Wednesday.

The report noted that Microsoft's Scope 1 and 2 emissions—those produced by the company's direct activities and its consumption of electricity or heat—decreased by 6.3% in 2023 compared to 2020.

However, its indirect emissions—resulting from all other activities Microsoft is involved in—increased by 30.9% during the same period.

Microsoft is introducing a new requirement for its "select scale, high volume suppliers to use 100% carbon-free electricity" by 2030 to address its indirect emissions.

According to a Goldman Sachs report published in April, artificial intelligence and data centers are projected to account for 8% of U.S. electricity consumption by 2030, more than double their current share.

Goldman Sachs anticipates that natural gas will supply 60% of the increased power demand from data centers, with renewables providing the remaining 40%. Utility companies such as Dominion Energy and Duke Energy have indicated that natural gas will be necessary to support renewables when solar and wind power are insufficient due to weather conditions.

Microsoft aims to match 100% of its electricity consumption with zero-carbon energy purchases by the end of the decade. Last year, the company increased its contracted renewable energy assets to over 19.8 gigawatts across 21 countries and secured 5 million metric tons of carbon removal over the next 15 years.

Earlier this month, Microsoft signed a deal with Brookfield Asset Management to contract 10.5 gigawatts of renewable energy between 2026 and 2030. Brookfield and Microsoft described this agreement as the largest power purchase agreement ever signed between two corporate partners.

Additionally, Microsoft recently signed an agreement with a Swedish partner to remove 3.3 million metric tons of carbon dioxide, marking the largest deal of its kind to date.

Source: cnbc