Saying One Thing and Doing Something Else: How Microsoft’s AI Ambitions Are Heating Up the Planet!

Microsoft falls short of its’ climate commitments, in order to develop more AI products. Will this opportunity cost prove deadly later on?

Microsoft’s AI Push Increases Carbon Emissions

Microsoft’s greenhouse gas emissions surged by 30% in fiscal year 2023, a sharp rise since its 2020 pledge to become carbon negative by 2030. The company’s focus on AI, which demands significant energy for training and running models, complicates its ambitious climate goals. Despite efforts to cut emissions and invest in renewable energy, Microsoft’s AI endeavours have increased its carbon footprint significantly .

AI’s Impact on Sustainability Goals

The sustainability report highlights the difficulty in balancing AI advancements and climate commitments. Microsoft’s investment of over $13 billion in OpenAI and the expansion of AI features in Microsoft 365 Copilot are major contributors to its rising emissions. As Microsoft president Brad Smith noted, the company’s “carbon moonshot” goals now seem much harder to reach due to the growing electrical needs of AI technologies.

Renewable Energy Investments Fall Short

Despite making the largest renewable energy deal to support its AI projects, Microsoft emitted 15.357 million metric tons of CO2 last fiscal year, equivalent to the annual emissions of countries like Haiti or Brunei. The increased energy consumption from AI-focused data centres, which are more power-hungry than traditional ones, underlines the challenge Microsoft faces in reconciling its AI ambitions with its climate pledges .

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*An AI tool was used to add an extra layer to the editing process for this story.