Big Tech looks to carbon credits amid AI race; Microsoft leads
The AI boom may have a side effect: an increase in Big Tech buying carbon credits to offset the emissions created by its energy-hungry nature.
Amazon, Google, MetaAnd Microsoft They have increased their purchases of permanent carbon credits since the launch of ChatGPT triggered the AI race in 2022, according to data compiled for CNBC by carbon credit management platform Ceezer.
The companies have all committed to achieving net-zero emissions, but the rapid development of energy- and water-intensive AI has raised questions about whether this goal is achievable. The credits allow them to offset emissions by financing other projects that reduce emissions, such as technologies that remove carbon from the atmosphere.
Each carbon credit represents one metric ton of carbon dioxide reduced or removed from the atmosphere.
Amazon, Google parent Alphabet, Microsoft and Meta are eyeing a nearly $700 billion bill to support AI goals this year; This bill includes building massive data centers that also contribute to higher emissions.
Based on current market data from carbon credit management platform Ceezer, which also analyzed information from carbon market data analysis providers Allied Offset and Cdr.fyi, they increased their purchases from 14,200 credits for permanent carbon removal in 2022 to 11.92 million in 2023. According to Ceezer, it increased by 104% annually to 24.4 million in 2024, and by 181% to 68.4 million in 2025.
While Ceezer’s data focuses on carbon removals that are considered permanent, Microsoft’s acquisitions cover time-limited carbon removals defined as high, medium, and low durability; the second involves techniques such as soil or forestry that sequester carbon for less than 100 years.
Amazon declined to comment on its carbon credit strategy, while Meta and Google did not respond to requests for comment.
A low starting point
Of the Big Four Tech companies, only Microsoft has consistently reported annual acquisitions dating back to 2022. Credits are also purchased in batches delivered over a multi-year period, which can skew the numbers.
Additionally, there is no obligation to report them. Some acquisitions may have gone unreported due to potential reputational risk, Ceezer CEO Magnus Drewlies told CNBC. Ceezer CEO Magnus Drewlies said the first carbon credits were controversial because they did not represent real emissions reductions.
Achieving net zero for Big Tech without carbon removal is “impossible”, Drewlies said, due to the tight clean energy supply that will support AI creation.
Technological decarbonization includes a variety of techniques, such as direct air capture, where machines are used to absorb carbon dioxide from the air, and processes that accelerate nature’s ability to capture and store carbon.
Ben Rubin, executive director of the industry coalition Carbon Business Council, told CNBC that the increase in purchases reflects the UN’s 2022 IPCC report, which says decarbonization across all pathways will be necessary to limit global warming to below 1.5 degrees.
“The surge in demand for removal in 2023 was not a short-term response but the beginning of a structural change matched by increased private sector action and public policy support,” he told CNBC, adding that the purchases reflected a shift from small demonstration purchases to multi-year sales agreements.
“These buyers want to secure future supply, send demand signals to the market and address remaining emissions in their long-term climate strategies,” he said.
Building AI sustainably
Among Big Tech, Microsoft is considered a climate leader. Shilpika Gautam, CEO of climate finance platform Opna, told CNBC that the decarbonization market is “basically Microsoft.”
When asked about carbon credit purchases, Microsoft gave Ceezer different data. The company’s data reflects all types of carbon credits, not just permanent carbon removal.
Microsoft told CNBC that it sees a 247% increase in credit purchases to 5 million from 2022 to 2023, then a 337% increase to 21.9 million from 2023 to 2024, with a nearly 100% increase in the next fiscal year, but did not provide an exact figure..
Microsoft’s chief sustainability officer, Melanie Nakagawa, told CNBC that the company is focused on reducing emissions and eliminating what appears to be carbon negative by 2030.
“As a first mover in the decarbonization market, we are in a unique position to send demand signals that can lead to increased supply. A decarbonization market with more solutions and more buyers will bring us all closer to achieving our collective goals and driving positive planetary and economic impact,” he said in an emailed statement.
Microsoft did not specifically address whether its carbon credit purchases were related to its AI strategy.
Renewable energy will likely play a key role in meeting the growing demand for AI data centers.
Leveraging data from its platform, Ceezer’s Drewlies stated that they do not rely solely on carbon credits, saying, “Over time, as AI has increased, emissions have increased slightly when looking at large companies, but not that noticeably. This means that hyperscalers have been able to react relatively quickly, including by switching to renewable energy.” he said.
Opna’s Gautaum said Microsoft’s carbon credit purchases are largely “attributable to the creation of AI data centers.”
Gautaum added that Microsoft’s investment in companies that develop low-carbon materials, such as Sublime Systems and Stegra, makes sense because, when scaled up, they enable the construction of sustainable infrastructure.
He said Big Tech’s “buying spree” of carbon credits to offset emissions was at odds with their “belief and desire to build back better.”
Last year on Amazon launched a platform where its partners can purchase carbon credits. It also invests in reducing the impact of the materials it uses, water and energy efficiency, and renewable energy sources.
He added that it would be “great” if there was no one left in the decarbonization business in 10 years, because it would mean “we’ve committed to building back better.”
Drrewelies said net-zero commitments precede the AI boost, adding that carbon credit purchases will “probably” increase.
“There is a good chance that AI will practically support the need to remove carbon dioxide as a fast and flexible tool to deal with emissions increases,” he added.
