Rapid expansion of artificial intelligence (AI) and the surging energy demands of data infrastructure have been pushing up carbon emissions from the tech sector globally.
This is according to a new report released today 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 companies, reveals that energy consumption and emissions have been rising sharply, despite increasing commitments to climate goals.
“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 ITU Secretary-General Doreen Bogdan-Martin.
The report highlights that data centers, central to AI development and deployment, saw electricity consumption grow by 12% annually between 2017 and 2023, four times faster than the global average. This growth is contributing significantly to the tech sector’s environmental impact.
“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 Director of Research and Digitisation at WBA, Lourdes O. Montenegro.
Despite the rising energy use, the report found growing awareness and action across the sector.
The report also noted a rise in renewable energy adoption. In 2023, 23 companies operated on 100% renewable energy, compared to 16 in 2022.
The ITU report adds to the growing concerns about the impacts of AI on the global economy.
The International Monetary Fund (IMF) had last month expressed concerns that the surging demand for electricity to power AI data centers could create new challenges for energy infrastructure, prices, and emissions globally.