- Microsoft's carbon emissions increased by 25% in fiscal year 2025, largely due to data center expansion for AI and cloud services.
- Electricity-related emissions rose to 13% of the total footprint in 2025 from 2% in 2024, partly due to changes in renewable energy accounting.
- Microsoft introduced site-level transparency for water withdrawals and electricity use in its latest sustainability report for the first time.
- The company is adopting a 'Community-First AI Infrastructure' approach to address backlash and ensure responsible data center development.