Microsoft's carbon footprint keeps growing as AI drives data center expansions

Core Insights - Microsoft has committed to becoming carbon negative by 2030, but its carbon footprint has increased by 29% to 40% since the pledge was made in 2020 [1][2][4] - The rise in emissions is attributed to the growing demand for energy-intensive data centers driven by artificial intelligence and generative AI tools [2][3] - Despite the challenges, Microsoft remains committed to its sustainability goals and is investing in climate tech initiatives [2][3] Emissions and Financial Performance - In fiscal 2023, Microsoft emitted over 15.4 million metric tons of CO2 equivalent, which is approximately five times the annual emissions of Seattle [4] - The company reported a net income of $72.4 billion in fiscal 2023, reflecting a 6% year-over-year increase [4] Carbon Reduction Strategies - Microsoft has developed over 80 strategies to reduce carbon emissions from construction, purchased goods, and employee travel [4] - The company has mandated that by 2030, it will only work with suppliers using 100% carbon-free electricity [4] - Microsoft signed a deal to purchase 10.5 gigawatts of renewable energy, adding to its existing 19.8 gigawatts [4] - In 2023, Microsoft acquired over 5 million metric tons of carbon removal [4] - The company continues to invest from its $1 billion Climate Innovation Fund in startups focused on low-carbon products [4] Water and Waste Management - Microsoft's water usage has increased by 87% since 2020, reaching nearly 2.1 billion gallons, primarily for cooling data centers [5] - The company has projects to replenish water supplies that exceed its current usage [5] - Future data centers are designed to consume no drinking water for cooling, utilizing alternative strategies like rainwater capture [6] - Microsoft recycled and reused 89.4% of its cloud computing servers and components [6] Biodiversity and Land Protection - The company has permanently protected 15,849 acres to support wildlife and natural spaces [6]