AI's energy consumption leads to increased carbon emissions, Microsoft aims to compete for clean energy in East Asia
Microsoft is competing for clean energy resources in East Asia to achieve its carbon neutrality goal by 2030. Despite facing challenges such as power supply shortages and high-emission data centers, Microsoft still needs to compete with major chip suppliers for limited renewable electricity. According to Greenpeace, emissions from semiconductor production supporting AI services are expected to quadruple by 2024. Microsoft's Scope 3 emissions account for over 97% of its total carbon footprint, necessitating collaboration with suppliers to promote the use of carbon-free energy
According to Zhitong Finance APP, Microsoft (MSFT.US) has warned that although the window for achieving its key climate goals by 2030 is closing, the company still needs to compete for limited clean power supplies in parts of East Asia. The company's predicament mirrors that of several major chip suppliers located in East Asia, which also rely heavily on fossil fuel-dependent grids and face significant challenges in rapidly expanding renewable energy. According to Greenpeace, emissions generated by semiconductor production supporting artificial intelligence services are expected to increase more than fourfold by 2024.
Ken Haig, Senior Director of Government Affairs at Microsoft Japan, stated during a panel discussion in Tokyo on Thursday, "In Taiwan, South Korea, and Japan, the company is now 'competing for a small share of renewable power.'"
Global companies—especially large tech firms—have been striving to find clean energy to achieve low-carbon operations, as competition in the field of artificial intelligence has led to a surge in electricity demand. However, some companies have found that their emissions have actually increased.
According to Microsoft's 2025 Sustainability Report, its overall impact on global warming is 23% higher than in 2020. Part of the reason is its large-scale expansion of high-emission data centers. Microsoft has set a goal to achieve carbon neutrality by 2030.
The biggest emission challenge the company faces is controlling its "Scope 3 emissions," which account for over 97% of its total carbon footprint. According to Haig, a significant portion of this comes from the semiconductor manufacturing processes in Japan, South Korea, and Taiwan.
Haig stated, "We also need to ensure that our suppliers adopt 100% carbon-free energy." Microsoft is collaborating with suppliers through energy consumer alliances that are committed to increasing renewable energy options in Asia
