AI Growth Responsible for Rise in Emissions

Energy use and emissions climb alongside digital infrastructure

Carbon emissions and electricity use in the digital technology sector have increased significantly in recent years, driven in part by the rapid expansion of artificial intelligence (AI), according to a new report from the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA).

The Greening Digital Companies 2025 report, which tracks the environmental impact of 200 leading digital companies using data from 2023, attributes the rise in emissions largely to escalating energy demands from data centers that support AI and other digital services. Between 2017 and 2023, electricity consumption by these centers grew at an annual rate of 12%, four times the rate of global electricity demand.

Four AI-focused firms experienced an average increase of 150% in their direct and purchased energy emissions (known as Scope 1 and Scope 2 emissions) over the same period.

Sector contributes to global energy emissions

In 2023, greenhouse gas emissions from the 166 digital companies that disclosed emissions data accounted for approximately 0.8% of global energy-related emissions. Electricity consumption reported by 164 companies reached 581 terawatt-hours, equivalent to 2.1% of global use. Half of this electricity was consumed by just 10 companies.

Greater climate accountability and planning

Despite the rising emissions, the report documents improvements in corporate climate strategies. Eight companies achieved a score of over 90% in assessments of their climate data transparency, target-setting and performance – a significant increase from the three that reached this benchmark in the previous year.

For the first time, the report evaluates companies’ progress towards their climate targets and net-zero emissions commitments. Of the 200 firms assessed, nearly half had publicly committed to reaching net-zero, with 41 targeting 2050 and 51 setting earlier deadlines.

Additional positive trends include:

• 23 companies operated entirely on renewable energy in 2023, up from 16 in 2022.
• 49 companies issued dedicated climate reports.
• 110 companies reported targets for indirect (Scope 3) emissions, an increase from 73 in the prior year.

Recommendations for managing the sector’s footprint

To reduce their environmental impact, ITU and WBA recommend that digital companies:

• Strengthen verification of emissions data and align climate reporting with science-based targets.
• Publicly disclose the environmental costs of AI development and deployment.
• Enhance collaboration across the technology, energy, and environmental sectors to promote sustainable innovation.
• Continue expanding the use of renewable energy sources.

Integrating environmental indicators into national planning

The report also notes that ITU’s Telecommunication Development Bureau is working with stakeholders from government, academia, and industry to develop indicators that support national tracking of greenhouse gas emissions and inform data-driven climate policies.

Reference: Greening Digital Companies Report 2025: Monitoring emissions and climate commitments. Accessed June 5, 2025: https://www.itu.int/en/ITU-D/Environment/Pages/Publications/GDC-25.aspx

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