The 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, a new report by International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA) has revealed.
The Greening Digital Companies 2025 report disclosed that energy consumption and emissions have been rising sharply, despite increasing commitments to climate goals.
Data centres, critical for AI development and deployment, have seen electricity consumption grow by 12 percent annually between 2017 and 2023, four times faster than the global average. This growth is contributing significantly to the tech sector’s environmental impact.
“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, ITU Secretary-General.
Read also: Artificial Intelligence: Africa’s most powerful untapped tool for innovation and inclusion
The report highlighted four major AI-focused companies that experienced a 150 percent average increase in their direct and purchased energy emissions, known as Scope 1 and Scope 2 emissions, since 2020, emphasising the scale of AI’s environmental burden.
The 166 companies that reported greenhouse gas emissions were responsible for 0.8 percent of global energy-related emissions in 2023. However, 164 companies accounted for 2.1 percent of global electricity use, totalling 581 terawatt-hours (TWh).
The report stated that just 10 companies made up half of this consumption. “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 Montenegro, director of Research and Digitisation at WBA.
The report noted that transparency is also improving, with 49 companies issuing standalone climate reports in 2023, and 110 companies disclosing targets for indirect emissions related to supply chains and product use, up from 73 the year prior.
