The operational carbon emissions of the world’s top technology companies increased by a mean of 150 percent in the period from 2020 to 2023, primarily because of the mounting needs of artificial intelligence (AI) and data centres. This trend, noted in a fresh report produced by the United Nations’ International Telecommunication Union (ITU), indicates a sharp rise in global electricity consumption.
The ITU report, which calculated the greenhouse gas emissions of 200 leading digital companies, shows big leaps for industry leaders. Amazon’s emissions from operations increased by 182 percent in 2023 against 2020 levels. Microsoft emissions increased by 155 percent, Meta (which owns Facebook and Instagram) by 145 percent and Google parent Alphabet by 138 per cent over the period. Both direct emissions of company activities and those of energy purchased are included in these numbers.
Doreen Bogdan-Martin, ITU chief, added that Advances in digital innovation — particularly AI — are increasing energy consumption and emissions globally. The report also cautions that if left unchecked, AI systems' emissions from the highest-emitting systems would reach 102.6 million tonnes of carbon dioxide equivalent annually. One of the key issues highlighted is the absence of required disclosure of AI emissions or energy use, so it can be harder to understand the full climate impact of AI at the company level.
The growth of AI and cloud computing has also spurred a dramatic rise in electricity demand from data centers. The International Energy Agency (IEA) states that electricity use from data centers has increased 12 percent per annum since 2017. In 2024, electricity-guzzling digital firms used an estimated 581 TWh of electricity, which accounts for around 2.1 percent of global demand.
Although a number of tech firms have made emissions goals, the ITU report says these aspirations have not yet translated into practice. Meta cited its initiatives in saving emissions and energy in data centres, and Amazon touted efforts in carbon-free energy initiatives. Microsoft cited its success in power reduction and upgrading to more efficient cooling systems. Increasing energy demands of AI and data centers are posing a serious challenge to the current energy infrastructure and global sustainability objectives.