Are Big Tech Data Centers Underreporting Their Carbon Emissions?
In recent years, leading tech companies such as Google, Microsoft, Meta, and Apple have made bold claims regarding their carbon emissions.
However, an analysis suggests that emissions from their in-house data centers could be significantly underreported, potentially up to 662% higher than official figures. As the demand for data center power intensifies, particularly due to the rise of artificial intelligence (AI), the true environmental impact of these facilities is coming under scrutiny.
According to a Guardian investigation, emissions from the company-owned data centers of Google, Microsoft, Meta, and Apple between 2020 and 2022 may be about 7.62 times higher than what these firms officially report. This discrepancy is largely due to the use of renewable energy certificates (RECs) and “market-based” emissions reporting, which allows firms to claim carbon neutrality by purchasing credits, even if the renewable energy isn’t consumed directly by their facilities.
In comparison, “location-based” emissions, which reflect actual carbon output where data processing occurs, paint a more alarming picture. If these tech giants were considered a single nation, their collective emissions in 2022 would rank them as the 33rd largest emitter globally, placing them between the Philippines and Algeria.
The surge in AI technology is compounding concerns about rising emissions. AI applications like ChatGPT require far more energy than traditional cloud computing, with one AI query consuming nearly 10 times more electricity than a regular Google search. This increased demand is projected to drive data center energy use up by 160% by 2030, potentially leading to the accumulation of 2.5 billion metric tons of CO2 emissions by that year, according to Morgan Stanley.
All five major tech companies have claimed carbon neutrality in recent years, though some, like Google, have revised their carbon accounting standards to provide more transparency. Amazon, for example, declared in 2023 that it had met its carbon reduction goals ahead of schedule, achieving a 3% gross emissions cut. However, critics argue that these achievements rely heavily on “creative accounting.”
The role of RECs, which companies use to demonstrate their use of renewable energy, is central to this issue. RECs allow firms to purchase certificates representing renewable energy generation, but this energy doesn’t have to be consumed at the same location—or even in the same country—where the carbon emissions are produced. While the Greenhouse Gas (GHG) Protocol currently allows RECs in emissions reporting, many experts argue that this method distorts the true environmental cost.
Some companies, such as Google and Microsoft, advocate for a shift toward more accurate carbon accounting that matches energy consumption with renewable production based on time and location. Google has set a 24/7 goal, aiming for its data centers to run entirely on renewable energy by 2030. Microsoft is targeting a similar milestone with its 100/100/0 goal: to power all operations with 100% carbon-free energy around the clock by 2030.
Despite these efforts, data center emissions remain a major source of concern. For instance, Meta’s official emissions figure for 2022 was 273 metric tons of CO2, but under location-based accounting, its actual emissions jump to 3.8 million metric tons. Microsoft’s official emissions for the same year were 280,782 metric tons, but the true number, based on location-based metrics, is closer to 6.1 million metric tons.
As data centers continue to grow in size and power consumption, the industry faces the challenge of meeting escalating energy demands while mitigating environmental harm. With AI computing loads adding to this pressure, data center emissions are expected to keep rising. In the coming years, the ability of power grids to meet this demand remains uncertain, and it is unclear whether renewable energy production can keep pace.
