Microsoft’s new sustainability report, launched late final week, reveals how a carbon-heavy economic system can weigh on an organization that wishes to be carbon mild.
Since 2020, the corporate’s carbon emissions are up 23.4%, largely a results of breakneck information heart buildout to assist its rising cloud and AI operations. Shopping for sufficient clear electrical energy is definitely the straightforward half — it’s the amenities themselves which might be laden with carbon-intensive supplies and merchandise, together with metal, concrete, and laptop chips.
“We mirror the challenges the world should overcome to develop and use greener concrete, metal, fuels, and chips,” a Microsoft spokesperson advised TechCrunch by way of e-mail. “These are the largest drivers of our Scope 3 challenges.”
Scope 3 emissions are these which might be outdoors an organization’s direct management, together with uncooked supplies, transportation, and bought items and providers. Emissions in Scope 3 symbolize practically all of Microsoft’s carbon footprint, simply over 97% for fiscal yr 2024, which the 2025 sustainability report covers.
Microsoft’s Scope 3 profile is dominated by capital items and bought items and providers, with the 2 contributing about three-quarters of the corporate’s complete carbon emissions.
The development of information facilities has been the primary driver behind Microsoft’s cussed Scope 3 emissions. The metal used within the buildings comes from a provide chain that depends on blast furnaces heated by fossil fuels, and concrete used within the basis is the product of a chemical response that’s each powered by and a producer of carbon dioxide. Some startups are working to decarbonize each metal and cement, and Microsoft is an investor within the house, however it’ll be years earlier than these bets may have a big impression.
Carbon emissions are embodied within the laptop chips inside the info heart, too. Semiconductor lithography depends on chemical compounds which have extraordinarily excessive world warming potential. For instance, hexafluoroethane, which is used to etch options on chips, is a potent greenhouse gasoline, with 1 ton producing as a lot warming as 9,200 tons of carbon dioxide.
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Even in inexperienced electrical energy, which is less complicated to search out, hurdles have popped up as information facilities aren’t all the time constructed close to plentiful clear power sources. Due to that, Microsoft has had a tough time discovering close by sources of zero-carbon electrical energy, forcing it to depend on purchases elsewhere. “Our electrical energy consumption has grown quicker than the grids the place we function have decarbonized,” the spokesperson mentioned.
Total, Microsoft’s 2024 emissions have been down barely in contrast with 2023, suggesting that the corporate is getting higher at constructing information facilities with decrease local weather impacts. Nonetheless, it has a protracted technique to go to fulfill its 2030 objective of eradicating extra carbon air pollution than it generates. By its personal forecast, Microsoft must lower its emissions by greater than half whereas additionally considerably ramping up its carbon-removal efforts.
There are indicators that Microsoft is making some headway on each fronts. It has been one of many main buyers in and patrons of solar energy in current months, and its zero-carbon electrical energy portfolio now stands at 34 gigawatts of capability. Plus, it has not too long ago signed some very giant offers that promise to take away hundreds of thousands of metric tons of carbon.
Nonetheless, 2030 is just some years away, and the corporate’s push into AI and cloud could also be worthwhile — however it’s made reaching its sustainability objectives that a lot tougher.
