Microsoft's AI Buildout Sent Carbon Emissions Up 25% Last Year

The IEA projects data centers’ electricity-driven CO2 emissions will reach 300 million metric tons by 2035, nearly doubling from 180 million tons today. The outlook implies rising energy demand and potential regulatory and cost pressure on the data center and broader tech ecosystem. Investors may need to factor in higher power-related costs alongside tighter ESG expectations as growth continues.

Analysis

The IEA projects data centers’ electricity-driven CO2 emissions will reach 300 million metric tons by 2035, nearly doubling from 180 million tons today. The outlook implies rising energy demand and potential regulatory and cost pressure on the data center and broader tech ecosystem. Investors may need to factor in higher power-related costs alongside tighter ESG expectations as growth continues.