AI boom is testing tech firms' climate pledges
Technology companies are stepping up their climate commitments but not fast enough to counter rapidly growing energy needs linked to the artificial intelligence boom, a report said Wednesday.
Technological advancements in artificial intelligence are driving both efficiency and rising energy demands, according to a new report. The Greening Digital Companies 2026 report, published by the U.N.'s International Telecommunication Union and the World Benchmarking Alliance, found that major tech firms are falling short in cutting emissions at the pace required to meet global climate targets.
Despite progress in climate reporting and renewable electricity use, AI and cloud providers saw their emissions rise by up to 239% between 2020 and 2024, driven by increased energy needs and infrastructure expansion. While digital technologies offer potential for climate action, their rising energy demands and emissions cannot be ignored, the report emphasizes.
Four major AI and cloud computing providers had emissions increase by up to 239% from 2020 to 2024, while 14 major telecommunications firms reduced their emissions by 11% over the same period. In 2024, the 200 companies assessed reported 301 million tonnes of operational emissions, equivalent to 0.8% of global energy-related emissions, and consumed close to 500 terawatt-hours of electricity, or around 1.7% of global electricity consumption.
Only 25 of the 200 companies sourced 100% renewable electricity, and only 85 companies were assessed as on track to meet climate goals.
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