Big Tech’s 2025 sustainability reports reveal that they have finally got a grip on emissions and energy use from AI and data centres.

Microsoft’s Scope 1, 2, and 3 emissions, which include emissions Microsoft is responsible for across its entire value chain, fell by 8% in its 2024 fiscal year compared to a rise of 3% in the previous reporting year. Other companies’ emissions rose by less than in previous years.

However, this may prove to be temporary given current data centre construction plans. GlobalData’s construction projects database lists 621 new data centre projects due to start in 2026, up from 518 in 2025 and nearly double 2024’s figure of 311. While data centres are energy-intensive, their construction has a significant impact on Big Tech emissions due to the emissions from concrete and steel production, as well as the production of components.

Microsoft and Google both have commitments to fully offset their emissions by 2030. This can be achieved through reducing emissions or buying carbon offsets. Since emissions will likely rise, Microsoft and Google will need to source large volumes of carbon offsets.

However, the offset market has suffered from several years of growing scrutiny. Companies across different industries have faced reputational damage for buying low-quality offsets—credits linked to projects that either overstate their impact or would have happened anyway. In response, Big Tech has raised its standards, which shrinks the pool of eligible offsets it can buy and makes sourcing them more expensive.

Microsoft managed to procure more offsets than its emissions in 2024, but not all of these can be applied immediately. Many were so-called offtake agreements, which are advance purchases intended to finance projects that are still being developed. Google is also making long-term bets but faces similar constraints. Unless high-quality offset markets scale up rapidly, Big Tech will fall short of its 2030 promises.

Other key emissions reduction investments, like small modular nuclear reactors, will only impact emissions after 2030. The same is true of low-carbon building materials like steel and concrete, which depend on the scaling of hydrogen produced using renewable energy and carbon capture. Big Tech is trying to support some of these industries. Microsoft, Google, and data centre providers like Equinix and Standard Power have already announced offtake-type deals for power from small modular reactors near their operations.

Emissions are not the only climate challenge for Big Tech. Water use is a rising risk, particularly as data centres expand into regions already facing shortages. Big Tech companies have recognised this, with Google, Microsoft, Meta, and Apple setting water neutrality targets for 2030, aiming to replenish water at the rate that they use it. The main problem is cooling systems, which consume vast quantities of water, and while solutions are emerging, the adoption of key water-saving technology remains in its infancy.

Google has said it favors air cooling in water-stressed areas, while Microsoft is piloting advanced techniques such as direct-to-chip cooling, where coolant circulates in a closed loop attached to chips. Another innovation announced in September 2025 by Melanie Nakagawa, Chief Sustainability Officer at Microsoft, is in-chip cooling, where a coolant runs through microscopic grooves in chips themselves.

At the same time, tech companies are investing in water replenishment projects to restore natural sources. These can include wetland restoration or aquifer recharge, but the field lacks consistent standards. Measuring and verifying actual water impact remains difficult, which complicates transparency and reporting. Governments are also struggling to keep up. In June 2025, the UK Environment Agency admitted it did not have enough information on data centre water use to forecast national needs out to 2050. Without better monitoring and planning, both regulators and industry risk being blindsided by water scarcity linked to the digital economy.

"Big Tech has not given up on its climate goals…yet" was originally created and published by Verdict , a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Big Tech’s 2025 sustainability reports reveal that they have finally got a grip on emissions and energy use from AI and data centres.

Microsoft’s Scope 1, 2, and 3 emissions, which include emissions Microsoft is responsible for across its entire value chain, fell by 8% in its 2024 fiscal year compared to a rise of 3% in the previous reporting year. Other companies’ emissions rose by less than in previous years.

However, this may prove to be temporary given current data centre construction plans. GlobalData’s construction projects database lists 621 new data centre projects due to start in 2026, up from 518 in 2025 and nearly double 2024’s figure of 311. While data centres are energy-intensive, their construction has a significant impact on Big Tech emissions due to the emissions from concrete and steel production, as well as the production of components.

Microsoft and Google both have commitments to fully offset their emissions by 2030. This can be achieved through reducing emissions or buying carbon offsets. Since emissions will likely rise, Microsoft and Google will need to source large volumes of carbon offsets.

However, the offset market has suffered from several years of growing scrutiny. Companies across different industries have faced reputational damage for buying low-quality offsets—credits linked to projects that either overstate their impact or would have happened anyway. In response, Big Tech has raised its standards, which shrinks the pool of eligible offsets it can buy and makes sourcing them more expensive.

Microsoft managed to procure more offsets than its emissions in 2024, but not all of these can be applied immediately. Many were so-called offtake agreements, which are advance purchases intended to finance projects that are still being developed. Google is also making long-term bets but faces similar constraints. Unless high-quality offset markets scale up rapidly, Big Tech will fall short of its 2030 promises.

Other key emissions reduction investments, like small modular nuclear reactors, will only impact emissions after 2030. The same is true of low-carbon building materials like steel and concrete, which depend on the scaling of hydrogen produced using renewable energy and carbon capture. Big Tech is trying to support some of these industries. Microsoft, Google, and data centre providers like Equinix and Standard Power have already announced offtake-type deals for power from small modular reactors near their operations.

Emissions are not the only climate challenge for Big Tech. Water use is a rising risk, particularly as data centres expand into regions already facing shortages. Big Tech companies have recognised this, with Google, Microsoft, Meta, and Apple setting water neutrality targets for 2030, aiming to replenish water at the rate that they use it. The main problem is cooling systems, which consume vast quantities of water, and while solutions are emerging, the adoption of key water-saving technology remains in its infancy.

Google has said it favors air cooling in water-stressed areas, while Microsoft is piloting advanced techniques such as direct-to-chip cooling, where coolant circulates in a closed loop attached to chips. Another innovation announced in September 2025 by Melanie Nakagawa, Chief Sustainability Officer at Microsoft, is in-chip cooling, where a coolant runs through microscopic grooves in chips themselves.

At the same time, tech companies are investing in water replenishment projects to restore natural sources. These can include wetland restoration or aquifer recharge, but the field lacks consistent standards. Measuring and verifying actual water impact remains difficult, which complicates transparency and reporting. Governments are also struggling to keep up. In June 2025, the UK Environment Agency admitted it did not have enough information on data centre water use to forecast national needs out to 2050. Without better monitoring and planning, both regulators and industry risk being blindsided by water scarcity linked to the digital economy.

"Big Tech has not given up on its climate goals…yet" was originally created and published by Verdict , a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Google has said it favors air cooling in water-stressed areas, while Microsoft is piloting advanced techniques such as direct-to-chip cooling, where coolant circulates in a closed loop attached to chips. Another innovation announced in September 2025 by Melanie Nakagawa, Chief Sustainability Officer at Microsoft, is in-chip cooling, where a coolant runs through microscopic grooves in chips themselves.

At the same time, tech companies are investing in water replenishment projects to restore natural sources. These can include wetland restoration or aquifer recharge, but the field lacks consistent standards. Measuring and verifying actual water impact remains difficult, which complicates transparency and reporting. Governments are also struggling to keep up. In June 2025, the UK Environment Agency admitted it did not have enough information on data centre water use to forecast national needs out to 2050. Without better monitoring and planning, both regulators and industry risk being blindsided by water scarcity linked to the digital economy.

"Big Tech has not given up on its climate goals…yet" was originally created and published by Verdict , a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.