Microsoft has reported an almost one-third surge in emissions since 2020, largely a result of the robust infrastructure development for artificial intelligence, setting back its climate aspirations. According to Wednesday’s annual sustainability publication, the company attributed the nearly 30% emissions hike largely to the construction of data centres that serve AI and cloud computing systems. Microsoft acknowledged the unique challenges it faces due to its stature as a prominent cloud provider expanding its data centres amidst competition from rivals like Amazon and Google in supporting generative AI.
Significant funds have been directed towards OpenAI, which pioneered ChatGPT and the development of proprietary AI tools at Microsoft. Despite obtaining a 6.3% reduction in direct and energy-related emissions if compared against the 2020 baseline three years later, Microsoft witnessed nearly a 31% surge in supply chain emissions, which comprise the majority of its overall emissions. Consequently, the total emissions ascended by a round 29%.
Notwithstanding concreting numerous climate objectives, including “”carbon negative”” and “”zero waste”” status by 2030, Microsoft’s climatic endeavours risk derailment due to the energy and water-intensive nature of generative AI development. The ongoing drive to expand data centre facilities has also ignited concern over the adequacy of power grids ability to cater to the anticipated spike in electricity required for AI and the availability and quantum of renewable energy in those territories to energize this technology.
As a mitigative strategy against the swelling supply chain emissions, Microsoft recently voiced plans to stipulate “high volume” suppliers to harness 100% “carbon-free” power for the delivery of goods and services to the Washington-based giant by 2030. The company also pledged this month to support an estimated $10 billion (€910 million) worth of renewable power ventures to be executed by Brookfield Asset Management, as a part of aligning its AI aspirations with environmental targets.
The creation of new data centres has a significant environmental impact, in part due to the use of key building materials like cement and steel, which release a significant quantity of carbon during their production. This factor is escalated by the materials required for the creation of computer chips and other hardware components. Nonetheless, Microsoft has made a public commitment to ensure that its entire electrical usage will be balanced out by the purchase of carbon-neutral energy by the year 2030. The Financial Times Limited retains copyright until 2024.