Technology giant Microsoft has released its 2024 sustainability report, saying it's on track in four out of six areas, but is failing to rein in indirect emissions and water usage for its data centres.
The company said it has reduced direct Scope 1 and 2 operational emissions somewhat, reporting that they're down 6.3% since Microsoft's 2020 baseline. However, Scope 3 indirect emissions since then have increased a whopping 30.9%.
Overall, Microsoft's emissions are up 29.1% across Scopes 1-3, from the 2020 baseline. Scope 1 includes directly generated emissions, from for example, burning gas and oil for heating, whereas Scope 2 is from using electricity, the amount of which the user in question is responsible for. Scope 3 on the other hand covers broader, indirect emissions generated by an organisation's operations, and can include for example, employees driving to work.
Microsoft said its Scope 3 emissions increase is primarily due to building more data centres. The materials used for building data centres come with embodied carbon, and there also the IT hardware such as semiconductors, servers and racks that add to the greenhouse gas tally. In 2020, Microsoft said its Scope 1-3 emissions were 11,444,000 metric tons, so a 29.1% increase would take the figure to 14,774,000 tons currently.
In New Zealand, Microsoft is building an Azure cloud computing with three geographically separate data centres, which the company said will be powered by fully renewable energy from get-go.
The company is also planning a gigantic new facility called Stargate with 5 gigawatts capacity, estimated to cost US$100 billion. That energy usage contrasts with Microsoft's contracted portfolio of renewable energy which is just below 20 gigawatt.
New Zealand's current power generation sits at 5154 megawatt, Transpower figures suggest.
Microsoft is looking for carbon-free electricity infrastructure and sources, and has signed up with Helion to buy 50 megawatt of power, generated by the world's first nuclear fusion plant, by 2028.
Data centres are also huge water users. While Microsoft didn't say how much it has overshot its water usage target with, it said that it achieved its contracted replenishment projects estimated to provide over 25 m3 "in volumetric water benefits over the lifetime of these projects". This, it said, is enough to fill around 10,000 Olympic-sized swimming pools.
Microsoft is now trying to become "water positive" by reducing the intensity with which it withdraws resources. The new AI data centres will consume no water for cooling, Microsoft said.
Artificial intelligence (AI) which Microsoft is deploying across most areas of business, was singled out as one of the major technology changes since the company announced its commitment to be carbon negative, water positive and zero waste by 2030.
"... the infrastructure and electricity needed for these technologies create new challenges for meeting sustainability commitments across the tech sector," Microsoft's vice chair and president Brad Smith and the company's chief sustainability officer Melanie Nakagawa said.
Microsoft stopped short of saying whether or not the booming AI energy use with increased data centre construction would see it miss the 2030 net zero commitment.
It did however refer to the COP28 climate conference last year, to assess global sustainability goals, saying "the results were sobering". Recent reporting says almost 80% of scientists from the Intergovernmental Panel on Climate Change are expecting at least 2.5 degrees centigrade heating this century, with disastrous effects on the planets.
Microsoft said it is providing access to petabytes of environmental monitoring data from around the world for researchers, governments, companies and individuals, through its Planetary Computer, "as the world experiences worsening impacts of climate change".
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