Core Insights - The 2030 emissions targets of major Big Tech companies are jeopardized by the increasing power demands of artificial intelligence (AI) [1] - Carbon offset purchases are increasing, and while 2030 net-zero targets remain achievable, the growth in AI-fueled emissions is expected to slow temporarily due to capital expenditure plans [2] - The feasibility of purchasing high volumes of carbon offsets is demonstrated by Microsoft, which significantly increased its offset purchases, but challenges remain in delivering contracted offsets [3] Carbon Offsets and Emissions - The key question for climate targets is whether sufficient carbon offsets can be acquired to match emissions in 2030 and beyond [3] - Microsoft, Google, Meta, and Apple have committed to achieving carbon neutrality across their value chains by 2030, highlighting the importance of maintaining a pipeline of high-standard offsets [3] Power Purchase Agreements (PPAs) - Big Tech companies are utilizing Power Purchase Agreements (PPAs) to fund renewable projects in exchange for securing clean energy [4] - The report indicates that PPAs will continue to be a strategy, particularly for small modular reactors, which are well-suited for the continuous power needs of data centers [5] Scope 3 Emissions Challenge - A long-term challenge for Big Tech is the reduction of Scope 3 emissions, necessitating the expansion of net-zero strategies to include suppliers [6] - Suppliers to Big Tech are expected to face tightening procurement standards on emissions, requiring them to achieve reductions at or below specified emissions intensity levels [6]