Microsoft Reports 25% Rise in CO₂ Emissions Amid Data Center Expansion

Microsoft reported a 25 percent year-on-year rise in carbon emissions, with total Scope 1, 2, and 3 emissions increasing to 20.29 million metric tons of CO₂e as data center expansion accelerated. The company said the jump was largely due to its decision to stop using unbundled renewable energy certificates and instead invest in new clean energy projects.

Microsoft said it matched 100 percent of its global electricity consumption with renewable energy and has signed agreements for up to 40GW of new renewable capacity, with 19GW now online. The company also reported an average data center PUE of 1.17, a 25 percent improvement in water usage effectiveness since 2022, and said it replenished more water than it withdrew for the first time.

Microsoft said it funded 24 new water replenishment projects during the year, expanding its efforts to 34 priority watershed locations globally.
The company also reported a 92 percent reuse and recycling rate for retired servers and components, recycled more than 2,100 tons of UPS batteries, and diverted 90.5 percent of construction waste from landfill.