The rapid expansion of artificial intelligence is dramatically increasing the carbon footprint of the tech industry, according to a new United Nations report released on June 5, 2025.
The International Telecommunication Union (ITU) tracked greenhouse gas emissions of 200 leading digital companies between 2020 and 2023, finding that indirect carbon emissions from four AI-focused tech giants – Amazon, Microsoft, Alphabet, and Meta – rose by an average of 150% during this period. Amazon's operational carbon emissions grew the most at 182%, followed by Microsoft at 155%, Meta at 145%, and Alphabet at 138%.
These indirect emissions, which include those generated by purchased electricity, steam, heating, and cooling, have surged primarily due to the enormous energy demands of AI-powered data centers. The ITU report warns that as investment in AI increases, carbon emissions from top-emitting AI systems could reach up to 102.6 million tons of carbon dioxide equivalent per year.
The environmental impact extends beyond carbon emissions. Data centers require sophisticated cooling systems that consume significant amounts of water, with Google's water consumption increasing nearly 88% since 2019. This is particularly concerning in drought-prone regions like California.
Tech companies are responding with various sustainability initiatives. Amazon stated it is investing in carbon-free energy projects, including nuclear and renewable energy. Microsoft has doubled its rate of power savings and is transitioning to chip-level liquid cooling designs to reduce energy consumption. Meta is working to reduce emissions, energy, and water usage in its data centers.
However, the ITU report highlighted that while a growing number of digital companies have set emissions targets, these ambitions have not yet fully translated into actual reductions. The rapid growth of AI is driving a sharp rise in global electricity demand, with data center electricity use increasing four times faster than overall electricity consumption.
Experts predict that global electricity consumption for data centers could double to reach around 945 terawatt-hours by 2030, representing nearly 3% of total global electricity consumption. This surge is putting pressure on existing energy infrastructure, with some utilities proposing new fossil fuel power plants to meet the growing demand – a move that environmentalists warn could undermine climate goals.