Carbon emissions in the tech sector continue to climb, fuelled by rapid growth in artificial intelligence and data infrastructure, according to Greening Digital Companies 2025, a new report from the International Telecommunication Union and the World Benchmarking Alliance.
Tracking 200 leading digital companies, the report highlights that while many firms are improving climate commitments and renewable energy adoption, emissions and energy use are still rising.
From 2017 to 2023, electricity consumption by data centers — crucial for AI development — grew 12% annually, far outpacing global electricity growth.
Operational emissions at major AI companies have surged by 150% since 2020.
Digital companies now account for 0.8% of global energy-related emissions and 2.1% of total electricity use.
Encouragingly, renewable energy use grew, with 23 firms operating entirely on renewables in 2023, and 49 releasing standalone climate reports.
Despite progress, ITU leaders stress the need for urgent action. They call for stronger climate reporting, full disclosure of AI’s environmental impact, and greater cross-sector collaboration to drive decarbonization.
As AI reshapes industries, managing its environmental footprint remains critical for sustainable digital growth.
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