The World Benchmarking Alliance (WBA) and the International Telecommunication Union (ITU), a UN agency for digital technologies, have reported that the operational emissions of four prominent AI-focused technology companies increased by an average of 150% from 2020 to 2023.
Companies such as Amazon, Microsoft, Alphabet, and Meta have experienced a surge in their global indirect emissions due to the substantial energy demands of powering the data centres.
In 2023, Amazon recorded the highest increase in operational carbon emissions at 182% compared to three years prior, with Microsoft following at a 155% rise. Meta’s emissions grew by 145%, while Alphabet saw an increase of 138% in the same period.
The ‘Greening Digital Companies 2025’ report, tracking emissions and climate commitments of 200 leading digital companies between 2020 and 2023, shows an urgent need for environmental management in AI development.
Electricity consumption by data centres, crucial for AI operations, surged by an average of 12% annually from 2017 to 2023, outpacing global electricity growth fourfold.
The report highlighted that with rising investments in AI, the highest-emitting AI systems could potentially produce up to 102.6 million tonnes of CO₂ equivalent (tCO₂e) annually.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDespite the rise in emissions, the report indicates positive strides in corporate environmental responsibility.
An increasing number of companies are setting emissions targets, adopting renewable energy, and aligning with science-based frameworks.
In 2023, 23 companies operated on 100% renewable energy, and 49 companies published standalone climate reports, reflecting an increase in transparency.
The 200 digital companies in the report are also showing greater awareness of their broader industry impacts. The number of companies with targets for indirect emissions from supply chains and product use (Scope 3) increased from 73 to 110.
Additionally, almost half of the assessed companies committed to net-zero emissions, with 41 firms targeting 2050 and 51 aiming for earlier deadlines.
To ensure digital sustainability, the ITU-WBA report calls for strengthened data verification, ambitious climate reporting, and cross-sector collaboration to accelerate digital decarbonisation.
As the COP30 UN climate conference nears, ITU’s Green Digital Action is focusing on ensuring that climate pledges reflect the full impact of digital technologies.
