Microsoft admits its carbon emissions grew 25 percent in 2025, including an increase in fossil fuel use

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

In its latest sustainability report, Microsoft admitted that its greenhouse gas emissions actually increased by 25.1% year over year, from 16.2 million tons to 20.3 million tons in 2025.

With the company targeting a carbon-negative emissions deadline of 2030, rising emissions present a significant challenge it must overcome; However, current trends suggest that emissions continue to increase further.

Microsoft said its rapid expansion of artificial intelligence and cloud data centers as a key driver of rising emissions, and with more projects in the pipeline, this could be an ongoing challenge in the coming years.

Microsoft’s emissions are going 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. While 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 Scope 3 emissions are also under pressure from the continued expansion of data centers, due to unsustainable purchases of electricity, construction materials and computing hardware. For example, Scope 2 emissions went from representing 1.6% of total emissions in FY24 to a staggering 13.3% in FY25.

Regarding fossil fuel use, the company saw a 51% increase in diesel and crude oil consumption despite reductions in natural gas (-6.5%), propane/LPG/jet fuel (-10%) and gasoline (-16%) use. Still, 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 data sheet).

However, despite the challenges related to the expansion, Microsoft made significant progress in reducing overall emissions, reaching around 20 million tons last year instead of the 34 million tons it could have reached without working on carbon-free electricity, sustainable fuels, energy efficiency improvements and other improvements in the flexible chain.

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

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