• Data centres’ power needs have driven a 150% rise in indirect emissions across top AI-focused tech giants from 2020 to 2023.
• Amazon’s emissions spiked the most—up 182%—with Microsoft, Meta, and Alphabet also posting triple-digit growth.
• Without aggressive intervention, AI-linked emissions could reach 102.6M metric tons of CO₂e annually, straining energy grids globally.

The rapid growth of artificial intelligence is driving a sharp rise in global electricity demand, according to a new report from the United Nations’ International Telecommunication Union (ITU). From 2020 to 2023, indirect emissions from the operations of Amazon, Microsoft, Alphabet, and Meta jumped by an average of 150%, largely due to the soaring energy consumption of their AI-powered data centres.

Amazon recorded the sharpest increase in operational carbon emissions—a 182% surge over the three-year period. Microsoft followed at 155%, with Meta and Alphabet not far behind at 145% and 138%, respectively.

These indirect emissions refer to greenhouse gases from sources like purchased electricity, heating, cooling, and steam—services tech companies rely on heavily to run their expanding fleets of data centres.

“The rapid growth of artificial intelligence is driving a sharp rise in global electricity demand, with electricity use by data centres increasing four times faster than the overall rise in electricity consumption,” the ITU report stated.

The report assessed the emissions performance of 200 leading digital firms and raised a stark warning: as investment in AI accelerates, emissions from the top systems could hit 102.6 million metric tons of carbon dioxide equivalent annually. That figure would make AI-related operations a major emitter in the global climate landscape.

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Some companies pointed to their existing sustainability efforts in response.

Meta referenced its sustainability report, noting it is “working to reduce emissions, energy and water used to power its data centres.“

Amazon stated it is “committed to powering its operations more sustainably by investing in new carbon-free energy projects, including nuclear and renewable energy.”

Microsoft highlighted its own strides, saying it had “doubled its rate of power savings last year” and is now shifting to “chip-level liquid cooling designs” to reduce data centre energy use.

Despite these initiatives, the ITU warns that ambitious net-zero pledges from digital leaders have yet to yield material emissions reductions. The disconnect between targets and actual outcomes could undermine long-term sustainability goals across the AI and tech sectors.

As global demand for AI-driven services continues to grow, C-suite leaders and investors face an urgent imperative: scale digital infrastructure responsibly or risk climate consequences that could derail both environmental and business performance.

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