Microsoft Corp. reported that its carbon emissions climbed 25% in 2025, reaching 20 million metric tons of carbon dioxide equivalent, up from 16 million metric tons the prior year, according to its annual sustainability report. The increase was driven by new construction of data centers and a previously announced pause in the purchase of some renewable energy credits. Microsoft President Brad Smith and Chief Sustainability Officer Melanie Nakagawa wrote that “while AI infrastructure is driving demand for energy, water, land and materials, sustainability solutions are not scaling fast enough to meet demand.” The company pledged six years ago to pull more carbon from the atmosphere than it was emitting by 2030. In one example, Microsoft in June signed a deal with Chevron Corp. to take power from an enormous natural-gas-fired power plant set to be built in West Texas. Microsoft said its emissions would have been lower but for a decision last year to halt its purchase of a type of carbon credit. Smith and Nakagawa stated the company wants to be “more precise” about sustainability and refine strategies “as conditions change, data improves and trade-offs become clearer.”