Artificial intelligence is not just transforming how we work—it’s also powering a surge in energy use and emissions across the tech sector. A recent report by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA) takes a close look at the environmental footprint of 200 major digital companies as of 2023.
The study finds that while AI and data infrastructure are driving remarkable innovations, they are also pushing up carbon outputs. On the brighter side, more companies are setting clear emissions targets and switching to renewable energy, aiming to counterbalance this growth. ITU Secretary‑General Doreen Bogdan‑Martin even pointed out that as AI advances, so too does global energy consumption and emissions.
Data centres—the workhorses behind modern tech—saw an average annual jump of 12% in electricity use from 2017 to 2023, quadrupling the pace of global electricity growth. Meanwhile, emissions from four major AI players shot up by 150% since 2020, highlighting the pressing need to manage AI’s environmental impact.
The report shows that 166 digital companies were responsible for 0.8% of worldwide energy‑related emissions in 2023. Of those, 164 firms together consumed 2.1% of the global electricity, with just 10 companies using half of that total. It’s a powerful reminder that a handful of players can have an outsized impact.
Lourdes O. Montenegro, WBA’s Director of Research and Digitisation, emphasises that tech companies have both the influence and resources to lead the climate transition. However, real progress depends on turning ambition into measurable action. Encouragingly, nearly half of the companies reviewed have now committed to net‑zero emissions by 2050 or sooner.
Transparency is on the rise too. In a significant change from last year, eight companies now score above 90% on climate commitment assessments, up from just three. Plus, more firms are stepping up their renewable energy efforts—23 companies operated entirely on renewable power in 2023, compared with 16 in 2022.
Amid these trends, the report offers practical tips: improve data verification, set ambitious yet clear climate targets, and publish detailed climate transition plans. There’s a strong case for cross‑sector collaboration to drive digital decarbonisation and wider adoption of renewable energy solutions.
Cosmas Luckyson Zavazava, Director of ITU’s Telecommunication Development Bureau, describes the report as a vital tool for tracking the tech sector’s climate impact. Even as emissions continue to climb, the message is clear—a science‑based, transparent approach is key to making a lasting difference. With the COP30 UN climate conference looming, ITU’s Green Digital Action initiative is working to ensure that digital climate pledges truly reflect the environmental challenges posed by today’s technologies.
If you’ve ever wrestled with the challenges of balancing tech progress and sustainability, this report offers some welcome guidance. It reminds us that robust emissions data and clear action plans are essential to forging a greener digital future.
