How Microsoft is Driving Sustainable Energy With AI

Microsoft sees artificial intelligence (AI) as a powerful tool for sustainability, but the company acknowledges that this technology comes with significant challenges. 

In February 2025, the company reported a 30% rise in emissions since 2020, largely due to the expansion of its AI data centres.

Its 2023 report, Accelerating Sustainability with AI, outlined five key steps for maximising AI’s sustainability potential:

• Invest in AI for sustainability
• Develop infrastructure for the inclusive use of AI for sustainability
• Minimise resource use in AI infrastructure
• Advance AI policy principles and governance
• Build workforce capacity to use AI for sustainability

Microsoft has now published a follow-up report, Accelerating Sustainability with AI: Innovations for a Better Future, assessing progress on these steps.

In the foreword, Brad Smith, Vice Chair and President, and Melanie Nakagawa, Chief Sustainability Officer, highlight the need for AI to be both widely accessible and environmentally responsible. 

They write: “At Microsoft, we believe the world needs AI that is broadly accessible and trustworthy, this also includes addressing the sustainability challenges associated with this technology.”

They also stress the need for a broader approach to sustainability, stating: “One lesson from this last year is that minimising the sustainability impact of AI operations requires more than minimising resource use in data centre operations; it also requires supporting the communities where data centres are located and expanding access to zero carbon electricity.” 

Investing in AI to support sustainability

Microsoft argues that AI can accelerate the transition to net zero energy, which is essential for reducing emissions from AI data centres. 

Currently, over 40% of global CO₂ emissions come from burning fossil fuels for electricity generation.

One of Microsoft’s investments, LineVision, is working with National Grid in Upstate New York to deploy dynamic line rating technology on transmission lines. 

This technology can increase transmission capacity by as much as 60% in some regions, helping to integrate more renewable energy into the grid.

The company is also using reinforcement learning and Microsoft Azure high-performance computing to improve the efficiency and reliability of wind farms. These AI-driven solutions optimise energy production and predict maintenance needs, ultimately enhancing performance.

Beyond energy, Microsoft is focusing on climate risks and mitigating the impacts of climate change. 

Melanie Nakagawa explained on LinkedIn: “More than ever, the risk of wildfires is at the forefront of climate concerns. A complex interplay of weather, vegetation and land and water management practices contributes to these dangers.”

Through its Climate Innovation Fund, Microsoft is backing AI solutions like Vibrant Planet, which uses AI models to analyse environmental data and predict wildfire risks. 

“Vibrant Planet's models integrate observational data, global and regional climate models and ecosystem models to provide more accurate predictions and effective interventions for wildfires,” Melanie says.

Building AI infrastructure for inclusive use

Microsoft’s report states: “Without access to sufficient, high quality data and robust digital infrastructure, the full potential of AI’s game-changing capabilities cannot be realised.”

At present, nearly 80% of global biodiversity data originates from just 10 countries in the Northern Hemisphere, highlighting a significant data gap. AI technologies like Microsoft’s SPARROW aim to bridge this divide.

SPARROW is an AI-driven edge computing system designed to function independently in remote locations. It runs on solar power and features advanced sensors that collect biodiversity data using technologies typically deployed by researchers, such as camera traps, acoustic monitors and environmental detectors.

By enhancing data collection in underrepresented regions, Microsoft hopes to improve global conservation efforts and advance AI’s role in environmental sustainability.

By expanding access to data, Microsoft aims to support AI’s role in sustainability efforts worldwide.

Smith and Nakagawa reaffirm Microsoft’s commitment: “Across our sustainability work, we regularly assess our progress and adjust our strategies for greater impact.”

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