Microsoft admits its carbon emissions increased by 25% in 2025, including an increase in the use of fossil fuels

Microsoft produced 20.3 million tonnes of CO2e emissions last year, up from 16.2 million tonnes
Of the 37.5 million MWh of energy used, only 422,000 MWh came from unsustainable sources.
Increasing diesel/crude oil consumption and Scope 2 emissions are key factors

In its latest sustainability report, Microsoft admitted that its greenhouse gas emissions increased 25.1% year-on-year, from 16.2 million tonnes to 20.3 million tonnes in 2025.

As the company aims to be carbon negative by 2030, increasing emissions are a major challenge it must overcome, but current trends indicate that emissions continue to rise even further.

Microsoft said the rapid expansion of AI and cloud data centers was a key driver of rising emissions, and with more projects underway, it could pose an ongoing challenge for years to come.

Microsoft broadcasts are heading in the wrong direction

The company also highlighted its decision to stop purchasing short-term renewable energy certificates that do not directly support additional clean capacity. Although the previous year’s figure of 16.2 million tonnes was lower than last year, it was largely offset by carbon credits and does not accurately represent actual emissions.

More broadly, Scope 2 and 3 emissions are also under pressure from the continued expansion of data centers, due to unsustainable electricity purchases, building materials and IT hardware. For example, scope 2 emissions increased from 1.6% of total emissions in FY24 to a staggering 13.3% in FY25.

When it comes to fossil fuel use, the company saw a 51% increase in diesel and crude oil consumption despite reductions in natural gas (-6.5%), propane/LPG/fuel (-10%), and gasoline (-16%) consumption. Yet of the nearly 37.5 million MWh of energy the company used in FY25, only about 422,000 MWh came from non-renewable sources (according to a separate fact sheet).

However, despite the challenges of expansion, Microsoft has made significant progress in reducing overall emissions, reaching about 20 million tonnes last year instead of the 34 million tonnes it could have achieved without work on carbon-free electricity, sustainable fuels, improved energy efficiency and other soft chain improvements.

Microsoft isn’t the only company grappling with the impacts of AI: Amazon also recently noted a 16% annual increase in emissions, while also blaming AI and data centers. Google also saw a 25% increase in emissions over its last full year.

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