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

Microsoft is reportedly on track to make its first retreat from carbon removals since 2023, even as its AI-driven emissions climb by 25%.

• 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.

MSFT Cuts Carbon Removal Purchases

Microsoft purchased 8.55 million metric tons of carbon removal credits through mid-July, down about 80% from the same period last year, according to BloombergNEF calculations. The decline could mark Microsoft’s first annual retreat from the carbon removal market since 2023. The company entered the market in 2020.

Microsoft’s emissions, meanwhile, increased 25% in 2025. Its latest sustainability report attributed the rise to AI’s growing electricity needs and the slow rollout of cleaner energy solutions.

AI Spending And Climate Goals

Microsoft’s pullback comes as it and other hyperscalers compete aggressively to expand their AI operations. That push for scale is increasingly coming into conflict with climate targets the companies have previously outlined.

Bloomberg reported in April that Microsoft had paused some carbon removal purchases because of financial considerations. The company said at the time that it had not ended the program.

Microsoft said purchasing removal credits represents just one part of its broader decarbonization strategy.

“Any adjustments we make are part of our disciplined approach, not a change in ambition,” a company spokesperson said in an emailed response to Bloomberg.

Microsoft Still Dominates The Market

Despite the reduction, Microsoft remains by far the largest buyer in the voluntary carbon removal market, Bloomberg reported, adding that the company has accounted for almost half of all transactions so far in 2026.

Microsoft’s influence means changes in its buying activity can have a significant effect on the wider market. Global carbon removal credit sales reached 18 million metric tons through mid-July, down 66% from 2025 levels, according to BloombergNEF data.

MSFT Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for MSFT was ‘bearish,’ unchanged in the past 24 hours, while message volume was ‘low’ at the time of writing.

MSFT shares have gained nearly 2% year-to-date.

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