Microsoft Cuts Carbon Removal Purchases Amid AI-Fueled Emissions Surge

Microsoft has reduced its purchases of carbon removals by 80% in the first half of this year, according to calculations by BloombergNEF. The tech giant bought 8.55 million metric tons of carbon removal credits through mid-July, which is significantly less than it purchased over the same period in 2025.

This development comes as Microsoft and other hyperscalers are locked in an AI arms race, with efforts to achieve scale appearing to be on a collision course with previously stated climate goals. The company's carbon footprint has been growing due to AI's seemingly insatiable demand for electricity, coupled with the slow rollout of cleaner solutions.

Microsoft remains the top buyer by far in the voluntary carbon removal market, accounting for almost half of all transactions so far in 2026. However, the company's reduced commitment to carbon removals has a significant impact on the market, which is tracking 66% below 2025 levels.