The rapid growth of artificial intelligence (AI) and the energy-intensive infrastructure powering it are accelerating carbon emissions across the global tech industry, according to a new report released yesterday by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA).
The “Greening Digital Companies 2025” report, which analyzes data from 200 of the world’s leading digital firms, reveals a stark disconnect between climate commitments and real-world emissions. Despite increased pledges toward net-zero targets, both energy use and carbon footprints continue to climb, largely driven by AI and the data centers it depends on.
“Advances in digital innovation, especially AI, are driving up energy consumption and global emissions. While more must be done to shrink the tech sector’s footprint, the latest report shows that industry understands the challenge and that continued progress depends on sustaining momentum together,” said Doreen Bogdan-Martin, Secretary-General of the ITU.
The report found that electricity use by data centers, a key component of AI deployment, grew by 12% annually from 2017 to 2023, a pace four times faster than the global average. Meanwhile, four major AI-focused companies saw a 150% average surge in Scope 1 and Scope 2 emissions (direct and purchased energy emissions) since 2020.
Altogether, 166 companies that disclosed emissions data accounted for 0.8% of global energy-related emissions last year. In terms of electricity use, 164 companies consumed 581 terawatt-hours (TWh), 2.1% of global electricity, with just 10 firms responsible for half of that total.
“Digital companies have the tools and influence to lead the global climate transition, but progress must be measured not only by ambition, but by credible action,” said Lourdes O. Montenegro, Director of Research and Digitisation at the WBA.
Despite the sobering statistics, the report noted signs of growing environmental consciousness within the sector. Eight companies scored above 90% in climate commitment assessments—up from three in 2022. Nearly half of the firms surveyed have pledged net-zero targets, with 51 aiming for dates before 2050.
Other encouraging trends include the rise in transparency and reporting: 49 companies issued standalone climate reports in 2023, while 110 firms disclosed Scope 3 emissions (those linked to supply chains and product usage), compared to 73 the previous year. Renewable energy adoption also improved, with 23 companies running entirely on clean power, up from 16 in 2022.
The ITU’s findings echo concerns raised by the International Monetary Fund (IMF) last month, which warned that AI’s growing appetite for electricity could strain global energy infrastructure, drive up prices, and exacerbate emissions challenges.
As AI continues to reshape industries and societies, the report underscores a critical challenge: ensuring that the digital revolution is not won at the expense of the planet.