Microsoft adjusts climate agenda as emissions leap

Microsoft's greenhouse gas emissions rose 25 percent in its 2025 fiscal year, driven by a rush to build data centers and line up electricity for artificial intelligence and cloud computing. Google and Amazon reported similar jumps, 18 percent and 16 percent, in their own recent sustainability updates. Microsoft says it will stick with its climate goals, arguing emissions would have grown even more without efficiency work already underway.

Much of the increase traces to electricity: Microsoft used 37 million megawatt-hours of power in 2025, up 24 percent from the year before, enough to run 3.4 million U.S. homes for a year. The company also changed how it accounts for renewable energy credits, which made its electricity-related emissions look larger on paper. Microsoft continues to sign large contracts for wind and solar (it now has deals for 40 gigawatts) but has also turned to new natural gas plants for some data center projects, and it's investing in nuclear, geothermal, and smaller local clean-energy projects near data centers in 100 communities across 20 states.

None of this changes rebates or programs available to homeowners. It mainly shows how much electricity demand is climbing nationally as tech companies expand AI infrastructure, which can affect regional power supply and grid planning over time. Microsoft also remains the largest corporate buyer of carbon removal credits, signing deals in 2025 meant to offset tens of millions of tons of emissions over the next three decades, and says despite recent reports, it has not paused that work.