Microsoft has just four more years to reach its ambitious goal of removing more planet-warming carbon than it produces. But the company's annual sustainability report shows it is moving in the opposite direction: its 2025 emissions spiked 25% over the previous year.
In total, Microsoft produced 34 million metric tons of carbon dioxide equivalent in 2025. After subtracting the carbon it paid to remove from the atmosphere, that figure drops to a net 20 million tons — putting the company's footprint roughly on par with the total emissions of Panama or Lithuania. Its total electricity consumption grew 24% last year.
Despite the troubling increase, company leaders say they remain committed to the goal. "We continue to really be focused around carbon negativity by 2030," Melanie Nakagawa, chief sustainability officer, told GeekWire.
The prime driver is the buildout of energy-hungry AI data centers. Microsoft also stopped buying unbundled, short-term renewable energy certificates — a mechanism companies use to quickly lower reported emissions — instead prioritizing longer-term initiatives with bigger impact. Microsoft is not alone in slipping: Amazon's carbon footprint jumped 16% last year, while Google's greenhouse gas emissions swelled 18%.
There are bright spots: Microsoft matched its worldwide electricity consumption with clean energy sources, replenished more fresh water than it withdrew for the first time, achieved 92% reuse and recycling of decommissioned cloud servers, and reached 40 gigawatts of clean power purchase agreements across 26 countries.
Scrutiny is growing, however. Last month Microsoft and Chevron announced a natural gas facility in Texas with 2.67 gigawatts of capacity, providing dedicated electricity to the tech company for 20 years. Bloomberg reported Microsoft was considering scaling back its pledge to match electricity use with carbon-free power around the clock by 2030, and the New York Times reported the company was pausing purchases of carbon removal credits. Nakagawa said the company is still taking a hard look at each deal, looking for "credible opportunities to scale."
