Amazon, Google's parent company Alphabet, Microsoft, and Meta have significantly increased their purchases of permanent carbon credits as they expand their artificial intelligence (AI) operations, which are driving up energy consumption and emissions [1]. The surge in carbon credit activity is directly linked to the AI boom that began with the launch of ChatGPT in 2022, prompting these companies to offset emissions generated by their energy-intensive data center buildouts [1]. According to data compiled by carbon credit management platform Ceezer, purchases of permanent carbon removal credits rose from 14,200 in 2022 to 11.92 million in 2023. This trend accelerated with a 104% year-on-year increase to 24.4 million credits in 2024 and a further 181% jump to 68.4 million in 2025 [1].
The combined bill for fueling AI ambitions among Amazon, Alphabet, Microsoft, and Meta is estimated to approach $700 billion this year, reflecting the massive scale of investment in infrastructure that also contributes to higher emissions [1]. Each carbon credit represents a metric ton of carbon dioxide reduced or removed from the atmosphere, and the credits are used to fund projects such as technological carbon removal [1]. Microsoft's purchases span a range of time-limited carbon removals, categorized by durability, including techniques that sequester carbon for less than 100 years, such as soil or forestry [1].
Despite public commitments to net-zero emissions, the rapid development of energy and water-intensive AI has raised questions about the feasibility of achieving these goals. Ceezer CEO Magnus Drewelies stated that, due to a tight clean energy supply, achieving net zero is "impossible" for Big Tech without carbon removal [1]. Reporting of carbon credit purchases is not mandatory, and some purchases may not be disclosed due to reputational risks associated with early credits that were controversial for not representing genuine emissions reductions [1]. Of the four companies, only Microsoft has consistently reported annual purchases prior to 2022, and credits are often bought in batches delivered over multiple years, which may affect the reported figures [1].
Amazon declined to comment on its carbon credit strategy, while Meta and Google did not respond to requests for comment [1].
CONCLUSION
Big Tech's aggressive expansion into AI has led to a dramatic increase in carbon credit purchases, with Microsoft at the forefront. Despite efforts to offset emissions, experts question whether net-zero targets are achievable given the scale of energy demand. The market impact is medium, as these developments highlight both the environmental challenges and the financial commitments associated with AI growth.