This photo, shared by Google, shows one of its data centers located in Douglas County, Georgia. (AP Photo/Google)
A new report by the NewClimate Institute has raised serious concerns about the environmental impact of the rapid expansion of artificial intelligence (AI) and data centres operated by tech giants like Microsoft, Amazon, Meta, Google, and Apple. While these companies have publicly committed to reaching net-zero emissions, their actions tell a different story.
According to the report, the energy consumption of tech companies is soaring, largely driven by the explosion of AI services and cloud computing. These advancements depend on massive data centres that need a steady supply of electricity and water to function. What’s troubling is that this growth is occurring faster than the companies’ efforts to reduce their carbon footprint.
Thomas Day, a lead author of the report, said many of these firms have shifted their focus from firm climate targets to vague ambitions. He warned that without a clear strategy, Big Tech risks straying further from its sustainability goals. The challenge is made worse by the lack of clear rules around how emissions should be counted and reported in the future.
Microsoft is a prime example. Back in 2020, the company outlined bold green targets. But just five years later, it admitted these goals feel increasingly out of reach as their electricity use has tripled due to the expansion of cloud and AI infrastructure. Microsoft declined to respond to the report’s findings.
The Rising Power of Data Centres
Back in 2014, North America had under 1,500 data centres. By 2024, the U.S. alone will boast over 5,400. These facilities have grown not only in number but also in size and energy consumption. With AI expected to consume up to 12% of the country’s energy by 2030, analysts worry that this boom could derail the clean energy transition.
The report reveals a growing gap between climate pledges and reality. For example, Amazon and Meta have both seen their emissions nearly double in the last few years. While Amazon has a 2040 net-zero goal, it excludes key business operations and relies heavily on carbon credits, which critics say don’t solve the root problem.
Adding to the issue, many of these companies use third-party data centres but don’t count their emissions. Meta and Microsoft are among those not including such outsourced operations in their environmental reports. Apple and Google did not respond to the report, and Meta declined to comment in detail.
Amazon rejected the findings, claiming the report was filled with inaccuracies and lacked context. It defended its sustainability efforts, citing projects like reducing packaging waste, improving delivery routes, and lowering water usage. The company emphasized that AI is changing energy needs across the board, not just for Big Tech.
Bigger Implications for the Planet
Nick Dyer-Witheford, a media studies professor, says the issue goes beyond just emissions. He believes Big Tech's influence on modern lifestyles — from online shopping to influencer-driven consumption — plays a major role in increasing global emissions.
Over half of the U.S. data centres still run on fossil fuels, according to the Environmental and Energy Study Institute. From 2017 to 2024, energy use by data centres jumped 12%, and it’s expected to double again by 2030. AI-driven data centres are expected to take up almost half of that future energy load.
Computer science expert Anurag Srivastava warns that this could lead to frequent and rapid shifts in energy demand, which fossil fuels can handle more easily than renewables like solar or nuclear. He also points out the environmental cost of this dependency, especially when gas becomes the go-to solution for balancing sudden spikes in energy needs.
As AI continues to grow, so does its footprint. Without real change in how Big Tech manages this expansion, the road to net-zero may get longer — or disappear altogether.
