Emissions from the tech sector have continued to rise in recent years, driven by advances in AI and data infrastructure, a new report by the World Benchmarking Alliance (WBA) and the International Telecommunication Union (ITU) has found.
The Greening Digital Companies 2025 report, which assessed the emissions, energy use and climate commitments of 200 digital companies, found that electricity consumption by data centres increased by 12% annually between 2017 and 2023, four times faster than the global electricity growth rate.
Four leading AI-focused companies have seen their operations emissions grow by an average of 150% since 2020, a factor that ‘underscores the urgent need to manage AI’s environmental impact’, according to the report.
‘Driving up emissions’
“Advances in digital innovation — especially AI — are driving up energy consumption and global emissions,” commented Doreen Bogdan-Martin, ITU secretary general.
“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.”
In 2023, the digital companies covered by the report accounted for 0.8% of global energy-related emissions and 2.1% of global electricity use—amounting to 581 TWh.
Some ten companies are responsible for half that total, the report found.
Stepping up
Despite the continued growth in emissions, many tech firms are taking action, according to the report, with almost half of the companies assessed having net-zero emissions targets in place.
In addition, 23 companies operated on 100% renewable energy in 2023, up from 16 in 2022.
“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,” added 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 more here.
