AI boom strains climate claims
A surge in AI workloads is pushing data-center emissions up and testing Big Tech’s net-zero promises, prompting heavier reliance on carbon credits rather than immediate emissions cuts. Critics say offsets don’t address the underlying energy demand, which leaves tech firms exposed to growing scrutiny unless they invest in renewable power and structural efficiency. (oilprice.com)
Big Tech’s purchases of “permanent” carbon credits jumped from about 14,200 in 2022 to 11.92 million in 2023, then rose to 24.4 million in 2024 and 68.4 million in 2025 in Ceezer-tracked data compiled for CNBC, with Microsoft the largest buyer. (cnbc.com) Google disclosed total greenhouse-gas emissions of about 14.3 million metric tons in 2023, a 13% year‑on‑year increase and roughly a 48% rise versus 2019 that the company attributed in part to expanded AI‑driven data‑centre activity. (datacenterdynamics.com) Microsoft reported roughly 17.2 million metric tons of CO2e in fiscal 2023 and has signaled it will rely on “single‑digit millions” of durable carbon removals annually to meet its carbon‑negative-by‑2030 aim, reinforcing why it has become a major offset buyer. (statista.com) Industry capacity forecasts underline the pressure: IDC projects AI datacentre capacity will grow at a 40.5% CAGR through 2027, while the IEA’s Energy and AI analysis warns that AI workloads are a rapidly rising source of datacentre electricity demand. (my.idc.com) Independent investigators and campaign groups have challenged those offset strategies: a Bloomberg Green analysis found companies using unbundled RECs and electricity‑tied credits that can obscure real emissions, and Carbon Market Watch plus SBTi assessments have flagged offsets as unsuitable to meet science‑based targets. (bloomberg.com) Market signals are changing the calculus: BloombergNEF modelling shows carbon‑credit prices could reach triple‑digit levels by 2030 under some scenarios, while major cloud providers are simultaneously investing in efficiency research and durable removals to reduce exposure to higher offset costs. (about.bnef.com)
