Big tech's carbon credit purchases surge during AI race, led by Microsoft

The artificial intelligence boom might be causing an increased trend: Big Tech is purchasing more carbon credits to balance the emissions from their energy-demanding growth.

Amazon, Google, Meta, and Microsoft have significantly upped their acquisition of long-term carbon credits since ChatGPT initiated the AI competition in 2022, according to data gathered for CNBC by carbon credit management entity Ceezer.

These corporations have all pledged to achieve net-zero emissions, however, the swift progress of energy and water-intensive AI has prompted doubts about the feasibility of that target. 

The credits allow them to neutralise emissions by investing in other initiatives that curtail emissions, including technologies that cut carbon from the air.

Every carbon credit signifies one metric ton of carbon dioxide removed or lessened from the atmosphere.

Amazon, Google's parent Alphabet, Microsoft, and Meta are staring at close to a $700 billion total expenditure to drive their AI goals this year, including creating vast data hubs that also heighten emissions.

They elevated their purchases from 14,200 credits for enduring carbon removal in 2022 to 11.92 million in 2023, as per market figures from carbon credit management firm, Ceezer, which also reviewed inputs from carbon market data insight services Allied Offset and Cdr.fyi. 

The demand surged 104% in 2024 to 24.4 million and leapt 181% to 68.4 million in 2025, according to Ceezer.

Data from Ceezer zeroes in on carbon removals with lasting impact, while Microsoft's acquisitions cover a range of short-term carbon removals, classified into high, medium, and low endurance, with the latter using methods that store carbon for less than a century, such as soil or forestry.

Among the major tech giants, only Microsoft has regularly disclosed annual carbon credit purchases before 2022. 

Credits are also acquired in segments allocated over multiple years, possibly skewing the data.

Additionally, they are not required to report them. Some acquisitions might not have been disclosed due to potential reputational concerns — initial carbon credits were criticised for not representing authentic emission cuts, explained Ceezer CEO Magnus Drewelies to CNBC.

Given the scarce supply of clean energy to sustain the AI expansion, reaching net zero is "impossible" for Big Tech without carbon removal, Drewelies commented.

Technical carbon removal includes different strategies like direct air capture, where devices extract carbon dioxide from the air, and methods that hasten nature's process of seizing and storing carbon.