Amazon’s Emissions Climb Again, Even as Clean Tech Efforts Accelerate

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Amazon’s promise to reach net-zero emissions by 2040 is looking increasingly distant. Since making that pledge in 2019, the company’s emissions have more than tripled, despite a brief downward trend in recent years.

In 2024, Amazon reported its first year-on-year rise in emissions since 2021. According to the company’s latest Sustainability Report, released Wednesday, it generated 68.25 million metric tons of carbon dioxide equivalent. That represents a 6% increase from the previous year. While emissions had been slowly falling since their peak of 71.54 million metric tons three years ago, the trend has now reversed.

The key drivers behind the rise are not surprising. The rapid expansion of data centres and increased fuel usage by Amazon’s vast delivery fleet played the most significant roles. Transportation, logistics, and refrigerants used in warehouses remain the primary sources of Amazon’s direct emissions. But it’s the indirect emissions, those tied to data centre construction, building materials, and outsourced fuel consumption, that are now making the most significant impact.

Amazon’s growing investment in data infrastructure is closely tied to its push into generative AI. These AI models require not only computing power but also extensive data facilities equipped with high-energy servers. Building and running those facilities demands massive quantities of concrete, steel, and electricity, not to mention water, which is essential for cooling. In its report, Amazon acknowledged that managing the environmental impact of AI-driven data infrastructure is “one of the biggest challenges with scaling AI.”

In response, Amazon, like many of its tech peers, is sourcing more electricity from renewable and cleaner sources. Yet, despite this shift, the overall emissions footprint continues to grow. The company’s 2019 commitment to go net-zero by 2040 now sits in stark contrast to its current trajectory.

Amazon isn’t alone. Other major tech players, including Google, Meta, and Microsoft, are all facing similar dilemmas as they scale their data centre networks to support AI and cloud computing. Many have signed agreements to purchase carbon-free nuclear power in the years ahead, hoping to future-proof their energy needs.

Earlier this week, Google revealed a $3 billion deal to purchase hydroelectric power from Brookfield Asset Management’s facilities in Pennsylvania. The move is part of its larger $25 billion investment in data centres and AI infrastructure across PJM—the United States’ largest electric grid, covering 13 states in the eastern and midwestern regions.

Looking ahead, experts warn that the environmental costs of the Information and Communications Technology sector will only continue to grow. By 2040, emissions from this industry could account for more than 14 per cent of the world’s total, with data centres and communication networks responsible for the largest share.

The message is clear. As digital infrastructure grows, so too does the urgency to build it sustainably. The gap between ambition and impact is widening, and closing it will require more than bold pledges.