Amazon's Carbon Emissions Rise 6% in 2024 Due to AI Power Demand

Amazon's carbon emissions saw a 6 percent increase in 2024, reaching 68.25 million metric tons of carbon dioxide equivalent. This marks the end of a three-year period of declining emissions, primarily due to the escalating power demands of artificial intelligence (AI) technologies. The construction of data centers to support AI has surged, consuming vast amounts of energy and raw materials, including steel and concrete, which are highly carbon-intensive to produce.

The increase in emissions highlights a growing challenge for Amazon, which had pledged to achieve net-zero carbon by 2040 as part of its Climate Pledge. Despite this commitment, the company's emissions have grown by a third over the past five years. The report also noted that Amazon's electricity purchases will result in a 1 percent increase in emissions in 2024, the first growth in this category since 2019. The energy-intensive nature of AI workloads, which require enormous computing resources, is a significant contributor to this rise in electricity consumption.

Amazon acknowledges the need for collective efforts to reduce energy peaks and expand access to green, carbon-free energy. However, the company is finding it increasingly difficult to keep up with the rapid growth of AI, despite significant investments in renewable energy projects globally. The rest of the tech industry, including Alphabet, Meta, and Microsoft, are also facing similar challenges as they turn to AI for their next great leap forward. The environmental costs of these advancements are becoming more apparent, with AI data centers requiring more electricity and, in some regions, relying on power plants that run on natural gas and coal.

AI is transforming the energy sector, but not always for the better. In areas where clean energy infrastructure has not kept pace with surging demand, driven by tech-powered growth, progress toward sustainability is beginning to reverse. Amazon and other tech giants are signing contracts to secure carbon-free nuclear power for future operations, but the gap between energy demand and clean energy supply is widening. Amazon remains committed to achieving net-zero emissions by 2040, with efforts to decarbonize its delivery fleet, increase renewable energy purchases, and invest in technologies like carbon capture. However, the company's current path, particularly its focus on driving the AI boom, puts its climate promises at risk.

As Amazon invests in its AI infrastructure, there are increasing calls for more transparency, faster adoption of renewable energy, and clearer accountability for tracking and curbing emissions. The company's vision for 2024 is of a tech superpower pushing the future of AI, but this comes at the cost of delaying its green promises made just five years ago. The surge in power demand from AI data centers is also driving investments in renewable energy, as companies recognize the environmental impact of traditional energy sources. This shift towards renewable energy is creating new opportunities for investment in the renewable energy sector, as companies seek to secure reliable and sustainable energy sources for their AI infrastructure.