Geneva (TDI): The United Nations’ International Telecommunication Union (ITU) has released a concerning report revealing that operational carbon emissions from the world’s leading tech companies surged by an average of 150% between 2020 and 2023.
The rapid rise has been attributed to a dramatic increase in investments in artificial intelligence (AI) and the growing energy demands of data centers.
According to the ITU, companies such as Amazon, Microsoft, Meta, and Alphabet (Google’s parent company) experienced steep emission hikes, with Amazon’s operational emissions rising 182%, Microsoft’s by 155%, Meta’s by 145%, and Alphabet’s by 138%.
These figures include emissions from direct operations as well as purchased energy.
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“Advances in digital innovation – especially AI – are driving up energy consumption and global emissions,” said ITU Secretary-General Doreen Bogdan-Martin. “Without proper checks, the environmental cost of digital progress could outweigh its benefits.”
The report, which assessed emissions from the world’s top 200 digital companies, underscores a lack of standardized frameworks for disclosing AI-related energy use.
As AI systems become more powerful and widespread, their energy needs – and thus their environmental footprint – are expected to grow substantially. If left unregulated, emissions from leading AI systems could reach 102.6 million tons of CO₂ equivalent annually.
Electricity demand from data centers has mirrored this trend, increasing 12% year-on-year since 2017. In 2024 alone, data centers consumed 415 terawatt-hours (TWh), accounting for 1.5% of global electricity use.
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Projections suggest this could rise to 945 TWh by 2030, potentially outpacing Japan’s entire annual consumption.
Digital companies in total consumed around 581 TWh in 2024, with a staggering 52% of that demand concentrated among just 10 firms—including China Mobile, Amazon, Microsoft, Alphabet, and Meta.
Publicly available data from 166 companies revealed a combined 297 million tons of CO₂ emissions in 2023—equivalent to the annual emissions of Argentina, Bolivia, and Chile combined.
As the digital transformation accelerates, the ITU emphasizes the urgent need for environmental standards, transparency, and sustainable practices across the technology sector to mitigate long-term climate risks.
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.
