Amazon remains committed to net-zero by 2040 despite rising emissions

Amazon’s emissions climb 16% as AI and cloud expansion strain net-zero target

Amazon reported a 16% increase in carbon emissions for 2024, driven primarily by data center construction and the expansion of its cloud computing infrastructure. The company insists it remains committed to reaching net-zero carbon by 2040, despite direct emissions rising 162% since it launched the Climate Pledge in 2019. This growing gap between ambition and delivery raises serious questions about the compatibility of rapid AI growth with meaningful carbon reduction.

The emissions increase marks the first rise in three years. Total emissions reached 68.25 million metric tons of CO₂ equivalent in 2024, up 6% from the previous year. Data center construction, fuelled by demand for artificial intelligence and cloud services, accounts for much of the surge. Amazon’s delivery fleet also contributed significantly through increased fuel consumption.

However, the company defends its position by pointing to a 4% decline in carbon intensity. This metric measures emissions relative to business growth, suggesting the company is becoming more efficient even as absolute emissions climb. Amazon also highlights that it matched 100% of its electricity consumption with renewable energy in 2023 and maintained this in 2024.

Nevertheless, leaked internal records reveal a far larger data center footprint than publicly acknowledged. These findings suggest the company’s sustainability metrics may not reflect operational realities on the ground.

Leaked records expose hidden scale of global data center operations

Internal documents obtained by researchers show Amazon operates 924 data centers globally, significantly more than industry estimates ranging from 100 to 475 facilities. In Mumbai alone, leaked records identified 16 data centers, compared with just three publicly listed sites. These facilities consumed 624,518 megawatt hours in 2023, enough electricity to power approximately 400,000 Indian households for a year.

Consequently, this massive energy demand has kept aging coal power stations operating in Mumbai, directly undermining local clean energy objectives. The revelation contradicts Amazon’s claim that renewable energy matching reflects its true environmental impact. Critics argue that while the company purchases renewable energy certificates, its operations continue to drive fossil fuel consumption in regions where grid capacity cannot meet demand.

Globally, Amazon’s colocation data centers used 7.8 million megawatt hours in 2023. This figure exceeds the combined electricity consumption of Seattle and San Francisco. The scale of this energy use highlights the challenge facing any company attempting to reconcile exponential cloud growth with meaningful emissions reduction.

Furthermore, Amazon announced plans in 2025 to invest $150 billion in data center expansion. Shareholders questioned how this massive infrastructure build can align with the company’s 2040 net-zero target, particularly in Virginia where utilities are adding new gas plants to meet surging demand.

Emissions breakdown shows sharp increases across all categories

Scope 1 emissions, which cover direct operations including fuel consumption, grew 7% year over year. Amazon burned fossil fuels equivalent to 14.8 million metric tons of CO₂ in 2024. Scope 3 emissions, encompassing the company’s supply chain and indirect impacts, also jumped 7%. Within Scope 3, purchased goods and services accounted for 34% of total indirect emissions.

The original Climate Pledge committed Amazon to cutting shipping emissions by 50% and reaching net-zero carbon by 2040. Since making that pledge, direct emissions have increased 162%. This trajectory directly contradicts the stated goal and raises fundamental questions about whether current strategies can deliver the promised outcome.

Meanwhile, Amazon points to investments in climate technologies as evidence of progress. The company has ordered electric delivery vans from Rivian and claims to be mobilizing joint action with 549 other Climate Pledge signatories. Kara Hurst, Amazon’s sustainability chief, stated the company remains firm on its commitment even when progress proves less than linear.

Nevertheless, environmental groups argue that rising absolute emissions demonstrate a failure of current approaches. A Morning Consult poll found that four out of five Amazon Prime members want the company to take meaningful steps toward decarbonization, suggesting consumer expectations may be shifting faster than corporate performance.

Essential facts about Amazon’s carbon footprint and energy use

• Amazon’s direct emissions have risen 162% since launching the Climate Pledge in 2019, despite committing to reach net-zero by 2040.
• Total emissions reached 68.25 million metric tons of CO₂ equivalent in 2024, representing a 6% increase from the previous year.
• Leaked records reveal 924 data centers operating globally, far exceeding public estimates and consuming 7.8 million megawatt hours annually.
• In Mumbai, 16 undisclosed data centers used enough electricity to power 400,000 Indian households, keeping aging coal stations operational.
• Amazon plans to invest $150 billion in data center expansion, prompting shareholder concerns about compatibility with climate commitments.
• The company achieved 100% renewable energy matching for electricity consumption in 2023 and maintained this in 2024.
• Carbon intensity declined 4% in 2024, though absolute emissions continue to climb as business operations expand.

What UK businesses should understand about cloud emissions and reporting

This situation matters for UK companies because cloud computing forms an increasingly significant part of corporate carbon footprints. Many businesses assume that moving operations to cloud providers reduces their environmental impact. However, Amazon’s emissions trajectory demonstrates that cloud services carry substantial carbon costs, particularly as AI adoption accelerates.

For companies preparing Scope 3 emissions reports, cloud services fall under purchased goods and services. These indirect emissions must be included in carbon reporting for compliance with regulations including Streamlined Energy and Carbon Reporting (SECR) and the new UK Sustainability Disclosure Standards. Businesses cannot simply rely on supplier claims of renewable energy matching without understanding actual grid impacts.

Moreover, organizations bidding for public sector contracts need to demonstrate credible carbon reduction plans under Procurement Policy Note 06/21 (PPN 06/21). If your business relies heavily on cloud infrastructure, you should be questioning providers about their actual emissions trajectory, not just their renewable energy certificates. A supplier whose emissions are rising 162% over five years represents a material risk to your own carbon reduction commitments.

Additionally, the gap between reported carbon intensity improvements and absolute emissions increases reveals a fundamental accounting challenge. Carbon intensity can decline while total emissions soar if business growth outpaces efficiency gains. UK businesses making net-zero commitments need to specify whether they are targeting intensity reductions or absolute emissions cuts. The former allows indefinite growth in total carbon output.

Supply chain due diligence also requires closer attention to infrastructure providers. Sustainable procurement practices should include questioning cloud providers about their data center locations, grid mix, and actual operational emissions rather than accepting headline renewable energy claims at face value.

Furthermore, investor scrutiny is intensifying. Amazon shareholders moved from requesting disclosure to questioning strategic credibility in 2025. UK businesses should expect similar pressure from stakeholders who increasingly understand the difference between renewable energy accounting and real-world emissions reduction. Financial institutions are becoming more sophisticated in assessing climate risk and may challenge growth plans that conflict with stated environmental commitments.

How rapid AI expansion complicates corporate climate targets

The explosive growth of artificial intelligence creates unprecedented energy demands that challenge existing carbon reduction frameworks. Amazon’s experience illustrates how quickly AI infrastructure can overwhelm sustainability commitments. Data centers required for training and running large language models consume enormous amounts of electricity, often in regions where grid capacity relies on fossil fuel generation.

This presents a particular challenge for UK businesses adopting AI technologies. While cloud-based AI services appear clean at the user end, the infrastructure supporting them may be driving emissions growth far from view. Companies need to account for these embedded emissions when assessing the carbon impact of digital transformation initiatives.

Consequently, businesses should be asking cloud providers specific questions about AI-related energy consumption. Where are the data centers physically located? What is the actual grid mix in those regions? How much additional fossil fuel capacity is being brought online to meet demand? Renewable energy certificates purchased in one location do not offset coal power consumed in another.

The Virginia example proves particularly instructive. Amazon’s data center expansion in the state has prompted utilities to plan new gas plants because renewable capacity cannot scale quickly enough to meet demand. UK businesses using cloud services in such regions are indirectly contributing to fossil fuel infrastructure expansion, regardless of supplier sustainability claims.

Training requirements under emissions reporting frameworks should therefore include understanding the carbon implications of technology choices. Finance teams evaluating software purchases need to consider the emissions profile of different deployment options, including on-premise versus cloud solutions and the geographical location of data processing.

Companies backing Climate Pledge face credibility test over member performance

Amazon founded the Climate Pledge in 2019, attracting 549 signatories committed to reaching net-zero by 2040, a decade ahead of the Paris Agreement target. However, the founder’s 162% emissions increase since launch raises questions about the initiative’s credibility and accountability mechanisms. Other signatories may face reputational risk if the most prominent member fails to demonstrate meaningful progress.

UK businesses that have signed the Climate Pledge should consider whether association with the initiative supports or undermines their own sustainability credentials. If the founding organization cannot control its emissions trajectory, stakeholders may question the value of membership. This matters particularly for companies using Climate Pledge signatory status in tender responses or investor communications.

Similarly, businesses evaluating sustainability partnerships should look beyond headline commitments to examine actual performance trends. An organization can maintain firm commitment to distant targets while taking actions that make those targets increasingly unattainable. Investors and customers are becoming more sophisticated in distinguishing between genuine progress and aspirational statements.

Where to find authoritative information on corporate emissions reporting

The UK government provides comprehensive guidance on carbon reporting obligations through the Streamlined Energy and Carbon Reporting framework. This resource explains which businesses must report emissions and how to calculate Scope 1, 2, and 3 emissions accurately.

For companies supplying the public sector, the Procurement Policy Note 06/21 guidance sets out carbon reduction plan requirements. Understanding these rules helps businesses prepare compliant documentation and avoid exclusion from tender processes.

The Department for Energy Security and Net Zero publishes the UK Net Zero Strategy, which provides context for understanding how corporate emissions fit within national climate commitments. This document outlines sector-specific expectations and timelines that may affect business planning.

Additionally, companies can access carbon reporting compliance support to ensure their emissions disclosures meet regulatory standards and stakeholder expectations. Professional guidance helps businesses avoid common calculation errors and prepares them for increasing scrutiny of sustainability claims.