TLDR
- Microsoft emissions climbed 25% as expanding AI data centers lifted power use
- MSFT traded at $383.96 after reversing from above $390 during Thursday’s session
- Net emissions reached 20 million metric tons after Microsoft used carbon credits
- Electricity use rose 24% as Microsoft expanded computing capacity for AI services
- Microsoft still targets carbon negativity by 2030 despite higher annual emissions
Microsoft shares traded at $383.96 on Thursday after reversing sharply from an intraday high above $390. The stock held near $383 and $384, with support around $382.50 and resistance near $385. Microsoft reported a 25% annual rise in greenhouse gas emissions as data center construction accelerated across its network.
Data Center Growth Lifts Carbon Output
Microsoft recorded 34 million metric tons of gross carbon dioxide equivalent during fiscal year 2025. Carbon removal credits reduced net emissions to 20 million metric tons during the reporting period. Net emissions totaled 16 million metric tons in the previous fiscal year.
The company linked the increase to rapid data center expansion and changes in renewable certificate purchases. Microsoft stopped buying some unbundled, short-term renewable energy certificates during the year. Management redirected spending toward projects designed to add new clean electricity to power grids.
Electricity use increased 24% as Microsoft expanded computing capacity for artificial intelligence services. Purchased electricity represented 13% of the company’s total emissions footprint during fiscal 2025. That share stood near 2% during the prior year, showing a sharp increase.
Microsoft Maintains Its 2030 Climate Goal
Microsoft still plans to become carbon negative by 2030 under its climate pledge announced in 2020. The latest increase leaves the company with four years to reduce its net footprint. The company said available sustainability solutions have not matched the pace of infrastructure demand.
Microsoft continues to use carbon removal, carbon-free power, sustainable materials, and lower-emission fuels. The company matched all annual global electricity use with renewable energy during the year. Annual matching does not mean every facility used carbon-free power at all times.
The company also replenished more fresh water globally than it withdrew for the first time. Microsoft returned more than 14 million cubic meters of water through replenishment projects. It also reused or recycled 92% of decommissioned cloud servers for a second consecutive year.
Clean Power Deals Expand as Stock Weakens
Microsoft now holds clean power purchase agreements totaling 40 gigawatts across 26 countries. About 19 gigawatts of that contracted capacity currently operate, according to the company. These agreements support its long-term effort to increase cleaner electricity supplies globally.
Other large technology companies also reported higher emissions linked to expanding computing infrastructure. Google reported a 25% increase in supply chain emissions in its 2026 sustainability report. Amazon recorded a 16% rise, showing broader pressure across the technology sector.
Microsoft also agreed with Chevron on a planned natural gas plant in West Texas. The project would supply electricity to a dedicated data center campus, according to Bloomberg. Microsoft shares have fallen more than 24% during 2026 despite continued business growth.
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