The report, produced by the International Telecommunication Union ITU and the World Benchmarking Alliance WBA, reports electricity consumption by data centers, which power AI development and deployment, among other uses, to increase by 12 percent each year from 2017 to 2023, four times faster than global electricity growth.

The report tracks greenhouse gas GHG emissions, energy use, and climate commitments of 200 leading digital companies. According to the report, operational emissions from four leading AI-focused companies have risen by an average of 150% since 2020. This reveals that tech sector carbon emissions continue to rise, especially in recent years, fueled by rapid advances in artificial intelligence AI and data infrastructure. 

How much does AI contribute to emissions?

In 2023, the 166 digital companies covered by the report were responsible for 0.8% of all global energy-related greenhouse gas emissions. Among them, 164 companies reported electricity consumption totaling 581 terawatt-hours TWh, accounting for 2.1% of global electricity use, half of which was consumed by just 10 companies.

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Growing Environmental Concern

The report highlights growing climate accountability among tech firms, with eight companies scoring above 90% in its climate commitment assessment, up from just three last year. For the first time, the report also tracks progress toward climate targets and net-zero goals. Nearly half of the assessed companies have pledged to achieve net-zero emissions, with 41 targeting 2050 and 51 aiming for earlier deadlines.

Industry Understands the Challenge 

\”Advances in digital innovation — especially AI — are driving up energy consumption and global emissions,\” said ITU Secretary-General Doreen Bogdan-Martin. “While more must be done to shrink the tech sector’s footprint, the latest Greening Digital Companies report shows that industry understands the challenge — and that continued progress depends on sustaining momentum together.\”

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The report also points to encouraging shifts across the broader digital sector. In 2023, 23 companies operated entirely on renewable energy, up from 16 the previous year. Meanwhile, 49 firms issued standalone climate reports, reflecting a push for greater transparency. Notably, the number of companies setting targets for indirect emissions—those linked to supply chains and product use—rose from 73 to 110, indicating a growing recognition of the industry’s wider environmental footprint.