AI-driven datacenter builds drive Microsoft's emissions up a quarter in one year

Microsoft says it matched its entire electricity consumption with renewable energy last year. The bad news is it also increased greenhouse gas (GHG) emissions by 25 percent due to datacenter construction. The cloud and software biz has released a 2026 Environmental Sustainability Report [PDF], claiming its environmental sustainability work is entering a new phase due to rapid technological change. A global shift towards AI is reshaping economies, the report claims, which is becoming “found