Microsoft, Amazon, and Google collectively recorded a nearly 20% year-on-year increase in carbon emissions, driven largely by the rapid expansion of data centres to support growing AI and cloud infrastructure.
In FY2026, the three technology giants emitted a combined 119 million metric tonnes of CO₂ equivalent (MtCO₂e), roughly one-third of France's annual emissions. This marks a sharp rise from 101 million MtCO₂e in the previous year, a level comparable to the total emissions of Czechia in 2024.
The increase in emission is majorly due to surging demand for cloud services, like data storage and server operations. This trend has been especially pronounced with the rise of chatbots and other AI products.
Cecilia Rikap, Professor of Economics at University College London, questioned the environmental claims made by major cloud providers, arguing that Microsoft, Amazon and Google increasingly use sustainability messaging as part of their marketing while positioning AI technologies as solutions to the climate crisis.
Among the three companies, Microsoft recorded the sharpest increase, with carbon emissions rising 25% year-on-year to 20 million MtCO2e, primarily due to the expansion of its data centre infrastructure.
Google reported an 18% increase in emissions, citing higher supply chain emissions linked to rapid business growth and continued investments in digital infrastructure.
Amazon's total carbon emissions increased by 16%, while emissions from its supply chain, including those associated with data centre construction rose by 20%.
The increase in emissions reflects the industry's unprecedented investment in AI infrastructure. The world's largest technology companies are expected to spend an estimated $765 billion this year, with a significant portion earmarked for building AI-ready data centres and expanding cloud infrastructure.
Despite the rise in emissions, all three companies still plan to achieve net zero emissions, Google and Microsoft by 2030, Amazon by 2040.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
