As businesses migrate more workloads to the cloud, industry leaders like Amazon Web Services (AWS), Microsoft, and Google face growing criticism for failing to fully disclose the carbon emissions generated by their data centers. While these companies have promoted sustainability efforts, analysts argue they lack sufficient transparency to allow proper assessment of their cloud operations’ environmental impact.
A report by Canalys highlights AWS as the least transparent. Unlike Microsoft and Google, which at least report company-wide emissions across Scopes 1, 2, and 3, Amazon does not break out emissions data specific to AWS. This omission makes measuring the carbon footprint of the world’s largest cloud provider virtually impossible.
Elsa Nightingale, Principal ESG Analyst at Canalys, addressed the issue during the company’s Channels Forum, saying, “We don’t really know how big AWS’s footprint truly is, which is worrying.” She noted that current emissions from data centers may be underreported, potentially by as much as seven times, due to the use of renewable energy certificates in emissions calculations.
Amazon’s sustainability reports claim a decline in overall emissions since 2021, despite AWS’s rapid growth to meet demand for AI-driven services. However, industry experts question the validity of this claim.
Microsoft and Google, which also expanded their data center operations for AI growth, saw emissions increase by nearly 30% and 48%, respectively, in recent years due to the energy-intensive nature of AI workloads and data center construction.
Canalys analyst Ben Caddy emphasized that while Amazon has improved data center efficiency and adopted renewable energy sources, it continues to lag behind competitors in emissions reporting. EU-based customers, bound by the Corporate Sustainability Reporting Directive (CSRD), face compliance challenges due to this lack of data granularity.
AWS defended its approach, highlighting its progress in using 100% renewable energy for its data centers and implementing efficiency measures. However, the company offered no explanation for its decision not to disclose AWS-specific emissions data.
With AI driving exponential growth in cloud infrastructure, tensions between innovation and sustainability are intensifying. The Uptime Institute recently warned that unchecked AI expansion could derail global efforts to achieve net-zero carbon emissions. For cloud providers, balancing these competing priorities will require operational improvements and a commitment to greater transparency.
