Big tech companies’ carbon footprints skyrocket

In recent years, big tech companies like Amazon, Google and Microsoft have come under increasing scrutiny for their massive carbon footprint. Data shows that the carbon emissions of these tech giants since 2019 have exceeded the total emissions of Bitcoin since its inception in 2009. In fact, starting in 2019, when most of the largest U.S. internet companies began disclosing their emissions data, Big Tech has emitted far more carbon dioxide than Bitcoin has emitted since 2014.

In 2021, Amazon alone emitted 71.54 million metric tons of carbon dioxide, exceeding Bitcoin’s estimated emissions of 65.4 million metric tons that year. Combined with Google's 14.3 million metric tons reported in 2023 and Microsoft's 15.3 million metric tons, the tech giants' cumulative emissions exceed 100 million metric tons per year. These huge carbon emissions mainly come from its extensive data centers, global logistics network and growing demand for digital services. Data centers require massive amounts of energy to run and cool, while logistics networks rely on fossil fuels for transportation. As digital services expand their capabilities, so do the environmental footprints of these tech giants.

Bitcoin’s carbon emissions compared to tech companies

Bitcoin’s decentralized mining and the volatility of global energy sources make estimating its carbon footprint difficult. The global Bitcoin mining network used approximately 173.42 terawatt hours of electricity between 2020 and 2021, according to research published by the United Nations University and Earth Future magazine. If Bitcoin were a country, its energy consumption would exceed that of Pakistan, which has a population of 220 million. Bitcoin emits approximately 65.4 million metric tons of carbon dioxide per year, a figure equivalent to the total emissions of Greece.

Source: Earth's Future Global Bitcoin Mining Electricity Consumption (2020-2021)

Critics argue that these emissions pose a significant risk to the climate and question whether Bitcoin’s value is enough to offset its environmental impact. However, if we compare these figures to the company’s emissions, we can see that Big Tech’s carbon footprint is much larger than Bitcoin’s, and that’s before taking into account Amazon’s growth from 2021 to 2024.

Source: Earth's Future Carbon Footprint of Global Bitcoin Mining (2020-2021)

While it’s not entirely scientific to directly compare a company’s reported carbon emissions to Bitcoin’s estimated emissions, we can still see that the footprint of big tech companies extends far beyond Bitcoin. Assuming that AI, Bitcoin and cloud computing data centers are roughly equal in energy demand and carbon emissions, data shows that since 2019, large US technology companies have emitted more carbon dioxide than Bitcoin has emitted since its inception.

Environmental Responsibility Gap

Big tech companies’ carbon emissions pose a challenge to global environmental sustainability, in stark contrast to their role in driving AI and cloud computing. Environmental advocates criticize this gap between technological innovation and environmental responsibility. Carbon emissions reporting methods vary across industries, hampering accurate comparisons. Standardized approaches and increased transparency are essential for effective environmental management and accountability.

Since 2019, Big Tech’s carbon emissions have exceeded all emissions from Bitcoin mining, underscoring the need for environmental responsibility. Effective climate impact mitigation requires legislative frameworks and sustainable practices. Faced with these challenges, technology companies should invest more in renewable energy and low-carbon technologies to reduce their environmental footprint and achieve true "net-zero" carbon emissions goals.

All in all, while Bitcoin mining has been criticized for being energy-intensive and high-emissions, big tech companies have a greater impact when it comes to carbon emissions. While pursuing technological innovation, these companies must pay more attention to environmental responsibility and take active measures to reduce their carbon footprint and contribute to global sustainable development.

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