Tech Giants' Emissions Skyrocket 150% Amid AI, Cloud Boom: UN Report

Published Date : 06/06/2025 

The United Nations' digital agency reports a significant increase in operational carbon emissions for top tech companies between 2020 and 2023, driven by investments in artificial intelligence and data centers. 

Artificial intelligence, cloud computing, and data centers have led to a spike in electricity demand between 2020 and 2023. The United Nations’ digital agency, the International Telecommunication Union (ITU), has reported that operational carbon emissions for the world’s top tech companies rose an average of 150 percent during this period. This surge is attributed to the growing demand for digital services and the rapid advancements in AI technology.

Operational emissions for Amazon increased by 182 percent in 2023 compared to 2020 levels. Similarly, Microsoft's emissions grew by 155 percent, Meta (owner of Facebook and Instagram) by 145 percent, and Google’s parent company, Alphabet, by 138 percent over the same period. These figures encompass both the emissions directly created by the companies’ operations and those from purchased energy consumption.

The ITU's report, which assesses the greenhouse gas emissions of the world’s top 200 digital companies between 2020 and 2023, links this sharp uptick to recent breakthroughs in AI and the demand for digital services like cloud computing. Doreen Bogdan-Martin, who heads the ITU, stated, “Advances in digital innovation – especially AI – are driving up energy consumption and global emissions.”

While these technological advancements represent significant breakthroughs, the report warns that if left unchecked, emissions from top-emitting AI systems could reach 102.6 million tonnes of carbon dioxide equivalent per year. Currently, there are no standards or legislative requirements for companies to disclose their AI emissions or energy consumption, making it challenging to understand the impact of AI on company-level energy use. However, data from company reports show a clear trend of increasing operational emissions for companies with high AI adoption rates.

The AI and cloud computing boom has also led to a significant increase in electricity demand from data centers, which are crucial for powering digital services. According to the International Energy Agency (IEA), electricity consumption by data centers has grown by 12 percent year-on-year since 2017. In 2023, data centers alone consumed 415 terawatt-hours (TWh) of electricity, or 1.5 percent of global power demand. If this trend continues, data center electricity consumption is projected to reach 945 TWh by 2030, surpassing Japan’s annual electricity consumption.

Power-hungry digital companies consumed an estimated 581 TWh of electricity in 2024, accounting for approximately 2.1 percent of global demand. The report, which analyzed data from 164 out of 200 companies, found that just 10 companies generated 51.9 percent of their electricity demand in 2023. These companies include China Mobile, Amazon, Samsung Electronics, China Telecom, Alphabet, Microsoft, TSMC, China Unicom, SK Hynix, and Meta.

Publicly available emissions data for 166 out of the 200 companies revealed that they emitted 297 million tonnes of carbon dioxide equivalent per year in 2023. This is equivalent to the combined emissions of Argentina, Bolivia, and Chile. The ITU report underscores the urgent need for regulatory measures and standards to address the growing environmental impact of digital innovation and data center operations. 

Frequently Asked Questions (FAQS): 

Q: What caused the surge in emissions for tech companies?

A: The surge in emissions is primarily due to the rapid growth in artificial intelligence (AI) and cloud computing, which have significantly increased electricity demand.

Q: Which companies saw the highest increase in emissions?

A: Amazon, Microsoft, Meta, and Alphabet saw the highest increases in emissions, with Amazon's emissions growing by 182 percent and Microsoft's by 155 percent.

Q: What is the ITU's role in this report?

A: The ITU, or International Telecommunication Union, is a United Nations agency that assesses and reports on the greenhouse gas emissions of the world’s top digital companies.

Q: How much electricity do data centers consume?

A: Data centers consumed 415 terawatt-hours (TWh) of electricity in 2023, which is 1.5 percent of global power demand. This is projected to grow to 945 TWh by 2030.

Q: What are the implications of these findings?

A: The findings highlight the urgent need for regulatory measures and standards to address the environmental impact of digital innovation and data center operations, particularly in the context of AI and cloud computing. 

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