Microsoft's carbon emissions have increased by 23.4% since 2020 due to rapid data center expansion for cloud and AI operations.
The majority of Microsoft's carbon footprint is due to Scope 3 emissions, mainly from capital goods, purchased goods, and services.
The construction of data centers, including the use of carbon-intensive materials like steel and concrete, contributes significantly to Microsoft's carbon emissions.
Microsoft faces challenges in sourcing zero-carbon electricity for its data centers and aims to cut emissions by over half by 2030 while increasing carbon removal efforts.