Microsoft, Amazon and Google reported a near‑20% rise in collective carbon output over the past year, reaching 119 m tCO₂e in the fiscal year ending March 2026—about a third of France’s emissions. Microsoft’s report showed a 25% jump to 20 m tCO₂e, Google an 18% increase, and Amazon a 16% rise with a 20% surge in supply‑chain emissions tied to datacentre construction.

The surge aligns with a global AI‑driven datacentre build‑out valued at $765 bn this year, spanning sites from Norway to North Tyneside. Analysts link the emission growth directly to AI investment, noting a shortage of carbon credits to offset the rise. Professor Shaolei Ren warned that limited credit supply may exacerbate the problem, while University College London’s Cecilia Rikap called the firms’ sustainability claims a marketing tactic.

Industry forecasts predict 1,200 new datacentres by 2030, with the Uptime Institute estimating the projects announced last year will consume 1.3% of global electricity—almost double current datacentre demand. The data highlights a tension between AI expansion and climate goals, suggesting that without new mitigation strategies, the sector’s carbon trajectory will outpace its net‑zero pledges.