Microsoft reported a 27% surge in greenhouse gas emissions during its fiscal year ending June 30, 2025, reaching 21.1 million metric tons of carbon dioxide equivalent (mtCO2e), up from 16.7 million the previous year.This increase is attributed to the rapid expansion of AI infrastructure, which has outpaced the company's decarbonization efforts.The spike in emissions intensity, now at 75.0 mtCO2e per million dollars of revenue, marks the first rise in six years despite a 15% revenue growth to $281.7 billion.

Key factors include a tenfold increase in Scope 2 emissions tied to purchased electricity and a policy shift discontinuing the use of carbon offset credits.The company acknowledged this temporary move away from carbon neutrality.Water consumption also rose 22% to 8,170 megaliters, with significant withdrawals from water-stressed regions.This trend aligns with similar reports from Google and Amazon, highlighting industry-wide challenges in balancing AI growth with environmental goals.The UN warns that global data centers now consume as much energy as 10 countries, prompting calls for renewable energy adoption by 2030.

Microsoft's disclosure follows a broader push for transparency and sustainability in tech, emphasizing the need for high-integrity climate action.