Amazon’s 2025 Sustainability Report Shows 16% Emissions Rise

Amazon’s 2025 emissions climb 16% as AI infrastructure expands

Amazon’s carbon footprint grew substantially in 2025, with total emissions reaching approximately 80.85 million metric tonnes of CO₂ equivalent. This represents a 16% increase from the previous year. The primary driver was rapid expansion of the company’s data centre network to support artificial intelligence and cloud computing services.

The rise marks the second consecutive year of emissions growth for the technology giant. Previously, emissions had increased by 6% in 2024. Since 2019, when Amazon made its net-zero commitment, total emissions have climbed 58%.

For UK businesses tracking their own supply chain emissions, this development illustrates a broader challenge. Many companies rely on cloud services from major providers. Consequently, these infrastructure decisions can directly affect Scope 3 calculations and carbon reporting obligations.

Data centre construction drives electricity and embodied carbon increases

The emissions surge stems largely from physical infrastructure required for AI computing. Building data centres demands significant quantities of concrete and steel. Both materials are highly energy-intensive to produce. Furthermore, operational electricity consumption has risen sharply as new facilities come online.

Emissions from purchased electricity increased by 34% in 2025 compared to the previous year. This category represents the power consumed by Amazon’s expanding network of server facilities. Meanwhile, supply chain emissions, which include construction materials and third-party logistics, account for 76% of the company’s total carbon footprint. These upstream emissions grew by 20% during the same period.

The scale of investment provides context for these figures. Amazon plans to spend nearly $150 billion over the next 15 years on data centre infrastructure. Additionally, CEO Andy Jassy announced the company expects capital expenditure of $200 billion in 2026 alone. This spending will target AI systems, semiconductor development, robotics, and satellite technology.

Analysts project that data centre power demand could more than double globally. Currently, these facilities consume between 1% and 2% of worldwide electricity. However, this figure may reach 3% to 4% by 2030. Such growth places enormous pressure on electricity grids and renewable energy deployment.

Carbon intensity rises for first time since 2019 pledge

Amazon has historically emphasized carbon intensity as a key performance indicator. This metric measures emissions per dollar of revenue. The company previously used improvements in this ratio to demonstrate that business growth could be separated from environmental impact.

In 2025, however, carbon intensity increased for the first time since Amazon signed the Climate Pledge in 2019. The figure rose from 109.5 grams of CO₂ equivalent per dollar of revenue in 2024 to 112.8 grams in 2025. This represents a 3% increase.

The reversal suggests that the sheer scale of infrastructure investment is currently overwhelming efficiency gains. While Amazon continues to invest in renewable energy contracts, the pace of data centre construction appears to be outstripping the availability of clean power. As a result, some facilities may rely on grid electricity that includes fossil fuel generation.

In the United States, this dynamic has contributed to increased investment in natural gas power plants. These facilities provide the reliable baseload power that data centres require. Therefore, the AI boom is inadvertently supporting fossil fuel infrastructure in some regions.

What the 2025 sustainability report reveals

Amazon published its 2025 Sustainability Report in early June 2026. The document provides detailed breakdowns of emissions across different categories and business units. Several key findings emerged from the data.

First, absolute emissions continue to climb despite renewable energy investments. Amazon has committed to matching 100% of its electricity consumption with renewable sources. Nevertheless, total emissions have grown substantially since the 2019 baseline year.

Second, supply chain emissions remain the largest component of the carbon footprint. At 76% of the total, these Scope 3 emissions include construction materials for data centres, manufacturing of servers and networking equipment, and third-party transportation. The 20% increase in this category reflects the material intensity of infrastructure expansion.

Third, the gap between the 2040 net-zero target and current trajectory appears to be widening. With emissions up 58% since 2019 and massive capital investment planned for AI infrastructure, the company faces significant challenges in reversing this trend.

For context, Amazon’s 2025 emissions slightly exceed the entire annual carbon footprint of New Zealand. This comparison highlights the scale of emissions associated with global cloud infrastructure.

Commercial implications for UK businesses and supply chains

These developments carry practical consequences for British companies managing their own environmental commitments. Many organizations use Amazon Web Services for cloud computing, data storage, or software hosting. Under Scope 3 accounting frameworks, these purchased services contribute to a company’s indirect emissions.

Businesses preparing carbon footprint reports should therefore anticipate that their cloud service emissions may increase. This applies particularly to companies expanding their use of AI tools or data analytics. Consequently, reported Scope 3 emissions could rise even if direct operations become more efficient.

For firms bidding on public sector contracts, this matters significantly. Procurement Policy Note 06/21 requires suppliers to demonstrate carbon reduction plans. If a substantial portion of emissions comes from cloud infrastructure, companies need to address this in their submissions. Simply switching providers may not solve the problem, as other major cloud platforms face similar challenges.

Supply chain due diligence requirements are also affected. Under emerging regulations, larger companies must assess climate risks throughout their value chains. If key suppliers rely heavily on carbon-intensive cloud services, this creates reputational and compliance exposure. Therefore, procurement teams should consider infrastructure emissions when evaluating technology vendors.

The electricity demand from data centres also has broader grid implications. In regions where AI infrastructure is concentrated, competition for renewable energy capacity may intensify. This could affect the availability and pricing of corporate renewable energy contracts. UK businesses with their own clean energy procurement strategies should monitor these market dynamics.

Additionally, companies using AI services should evaluate whether the environmental cost aligns with business necessity. Not every application requires the computing power of large language models. In some cases, simpler analytical tools may deliver adequate results with a smaller carbon footprint. This represents a practical way to manage Scope 3 emissions without compromising operational effectiveness.

Five key points from Amazon’s emissions data

• Total emissions reached 80.85 million metric tonnes of CO₂ equivalent in 2025, representing a 16% increase from 2024 and a 58% increase since the 2019 baseline year.
• Purchased electricity emissions rose by 34% in 2025, driven primarily by expanded data centre operations supporting artificial intelligence and cloud computing services.
• Supply chain emissions, including construction materials and third-party logistics, account for 76% of Amazon’s total carbon footprint and increased by 20% during the year.
• Carbon intensity increased for the first time since 2019, rising from 109.5 to 112.8 grams of CO₂ equivalent per dollar of revenue, indicating that infrastructure growth is outpacing efficiency improvements.
• Amazon plans capital expenditure of $200 billion in 2026 focused on AI infrastructure, suggesting that emissions growth may continue in the near term despite the company’s 2040 net-zero commitment.

Balancing technology investment against climate commitments

The tension between AI expansion and environmental goals is not unique to Amazon. However, the scale of investment and resulting emissions increase provides a clear example of the challenge. For businesses developing their own sustainability strategies, several considerations emerge from this situation.

First, interim emissions increases may be unavoidable when making infrastructure investments. The key question is whether these investments enable long-term decarbonization or simply lock in higher emissions. Data centres built today will operate for many years. Therefore, their energy efficiency and renewable energy access will determine their climate impact over decades.

Second, carbon intensity metrics can obscure absolute emissions growth. While efficiency improvements are valuable, they do not necessarily result in lower total emissions if business activity expands rapidly. Companies should track both metrics to maintain a complete picture. Our ESG compliance support services help businesses establish appropriate measurement frameworks.

Third, Scope 3 emissions often represent the largest portion of a company’s carbon footprint. Addressing these indirect emissions requires engagement with suppliers and service providers. For many UK SMEs, cloud computing represents a significant Scope 3 category. Consequently, understanding the emissions trajectory of major providers is essential for accurate reporting.

The renewable energy procurement challenge also deserves attention. Amazon has signed numerous power purchase agreements for wind and solar projects. Despite these investments, total emissions continue to rise. This suggests that renewable energy deployment is not yet keeping pace with electricity demand growth. Businesses making similar commitments should ensure that their renewable energy targets account for anticipated consumption increases.

For companies subject to carbon reporting requirements, the Amazon case study offers useful lessons. Transparency about emissions increases, even when they conflict with long-term targets, maintains credibility. Attempting to present only positive trends through selective metrics can undermine stakeholder trust. Therefore, comprehensive reporting that acknowledges challenges alongside progress is generally the better approach.

Looking ahead, the interaction between AI adoption and climate policy will likely intensify. Governments may introduce specific regulations for data centre energy consumption or carbon intensity. Businesses should monitor these developments, particularly if they operate their own significant IT infrastructure or rely heavily on cloud services for core operations.

Where to find authoritative guidance and data

The UK government provides comprehensive resources on carbon reporting and net-zero planning. The Department for Energy Security and Net Zero publishes annual conversion factors for calculating emissions from various activities, including cloud computing and data centre services.

For businesses working toward carbon reduction goals and reporting compliance, understanding Scope 3 emissions from purchased services is increasingly important. The government’s Procurement Policy Notes outline requirements for suppliers bidding on public contracts, including carbon reduction plan obligations.

Companies seeking to verify supplier emissions data can reference the GHG Protocol standards, which provide internationally recognized frameworks for corporate carbon accounting. These standards distinguish between different emission scopes and offer guidance on calculation methodologies.

The Environment Agency offers guidance on measuring and reporting environmental impacts for businesses operating in England. This includes practical advice on data collection, verification, and disclosure practices that align with regulatory expectations.