Tech companies more transparent about AI’s emissions impact – but action still lags

Tech companies are getting better at reporting the energy use and emissions related to their AI products, but this data shows that action still lags when it comes to mitigating these impacts.

Electricity consumption by data centres increased by 12% annually from 2017 to 2023 – four times faster than global electricity growth – as companies invested in infrastructure to power their AI ambitions.

The 164 digital companies that reported electricity consumption in 2023 accounted for 2.1% of global electricity use (581 terawatt-hours), with just 10 companies responsible for half of this total.

150% increase in AI-related emissions since 2020

At the same time, the amount of greenhouse gas emissions reported by tech companies reached 0.8% of all global energy-related emissions in 2023, with the four top AI-focused firms experiencing a whopping 150% increase in operational emissions on average since 2020.

These impacts, unveiled as part of the International Telecommunication Union (ITU) and World Benchmarking Alliance (WBA) ‘Greening Digital Companies 2025’ report, suggest that despite rising levels of transparency, more action is needed to deploy AI in a sustainable way.

“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 O. Montenegro, Director of Research and Digitisation at WBA. “This report provides a clear signal to the international community: more companies are stepping up, but emissions and electricity use continues to rise."

Read also: 'Environmentally-responsible AI is achievable'

Tech sector’s sustainability targets and progress

Despite the rise in AI-related energy use and emissions, the report highlights some progress by tech companies around climate targets and disclosures. Almost half of the 200 companies assessed have now committed to achieving net-zero emissions, with 41 firms targeting 2050 and 51 aiming for earlier deadlines.

In addition, eight companies scored above 90% in the report's climate commitment assessment on data disclosure, targets and performance – up from just three in last year's report. More companies (110 compared to 73 last year) are publishing targets on indirect Scope 3 emissions.

Renewable energy adoption is also growing, with 23 companies operating on 100% renewable energy in 2023, up from 16 in 2022.

ITU Secretary-General Doreen Bogdan-Martin commented: “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."