Greenhouse gas emissions and energy consumption in the digital technology sector have continued to rise, largely due to the accelerating development and deployment of artificial intelligence, according to the Greening Digital Companies 2025 report released by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA).
The annual report evaluates the climate performance of 200 major digital companies, using data available through 2023. It highlights a consistent increase in electricity demand, particularly from data centers that support AI applications. Between 2017 and 2023, electricity use by data centers grew by 12 per cent annually, outpacing overall global electricity growth by a factor of four.
Operational emissions from four companies with significant AI operations rose by an average of 150 per cent since 2020, the report finds. These emissions—categorized as Scope 1 and Scope 2, which include both direct and purchased energy use—reflect the scale of environmental pressure linked to AI infrastructure.
In total, the 166 digital companies reporting greenhouse gas data accounted for 0.8 per cent of global energy-related emissions in 2023. Electricity use reported by 164 firms amounted to 581 terawatt-hours, or 2.1 per cent of global consumption, with just 10 companies responsible for half that figure.
While the report documents a continued upward trend in emissions and energy use, it also identifies several indicators of improved corporate climate engagement. The number of companies achieving top scores for climate-related disclosure and performance rose from three in the previous report to eight. Nearly half of the companies assessed had adopted net-zero targets, with 51 aiming to reach that goal before 2050.
The report also records a rise in renewable energy sourcing. In 2023, 23 companies operated entirely on renewable power, up from 16 the year before. Meanwhile, 49 companies issued dedicated climate reports, and the number of firms setting targets for Scope 3 emissions—which include supply chain and product use impacts—increased from 73 to 110.
Despite these developments, the ITU and WBA emphasized the need for faster progress. The report urges companies to improve data verification and transparency, enhance emissions disclosures from AI operations, and intensify collaboration with other sectors to support decarbonization efforts.
The ITU’s Telecommunication Development Bureau is currently working with a range of stakeholders to establish measurement frameworks for national GHG tracking and data-driven climate policy, through its Expert Group on Telecommunication/ICT Indicators.
