Market Insight: Accounting For AI’s Rising Emissions

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Executive Summary

The rapid expansion of AI is driving a surge in emissions, fuelled by energy-intensive data centres, model training and inference processes. Hyperscalers such as Amazon Web Services (AWS), Google, Meta and Microsoft are at the forefront of this growth, yet transparency in reporting AI-related emissions remains inconsistent. As AI adoption accelerates, questions arise: how are these firms accounting for the environmental impact of AI and is there an emerging best practice for disclosure? This report examines the sustainability disclosures of four leading hyperscalers, assessing how they account for AI in their corporate carbon footprint. By identifying gaps and highlighting effective approaches, the analysis provides actionable insights for improving accountability and finding workarounds to calculate AI emissions.

AI emissions are a growing concern in the age of hyperscalers
AI growth complicates hyperscalers’ path to net zero
Emissions from AI use are largely unreported
Firms can estimate AI emissions using workarounds 

Figure 1. Different types of AI-related emissions come from varying sources
Figure 2.
Hyperscalers’ emissions have seen a large increase in the last five years
Figure 3.
Analysis of four hyperscalers’ AI emissions and energy-related reporting

About the Authors

Alessandra Leggieri

Alessandra Leggieri

Senior Analyst

Alessandra is a Senior Analyst at Verdantix, specializing in carbon management and software for product carbon footprints. Her research spans over 100 vendors in the carbon ma...

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Ryan Skinner

Ryan Skinner

Research Director

Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...

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