Microsoft Slashes Carbon Removal Purchases By 80% As AI Boom Drives Emissions Higher, Says Report — MSFT Stock Edges Lower

Microsoft Slashes Carbon Removal Purchases By 80% As AI Boom Drives Emissions Higher, Says Report — MSFT Stock Edges Lower

By Aveek Bhowmik
Publication Date: 2026-08-13 17:58:00

  • Microsoft reportedly cut carbon removal credit purchases by about 80% to 8.55 million metric tons through mid-July.

  • The pullback comes as Microsoft and other hyperscalers ramp up spending to expand their AI operations.

  • The AI expansion is increasingly putting pressure on the climate targets previously outlined by the companies.

Microsoft Corp. (MSFT) has cut its purchases of carbon removal credits by 80% so far this year, as the tech giant ramps up spending on artificial intelligence. The pullback comes as Microsoft’s emissions rose 25% last year amid surging electricity demand from AI, according to a Bloomberg report.

MSFT stock was trading marginally higher at 0.5% on Thursday afternoon at the time of writing, after gaining nearly 2% earlier in the session.

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MSFT Cuts Carbon Removal…