The cost of the AI boom: Amazon emissions jump 16% as company stands by net-zero pledge

Amazon’s carbon footprint jumped 16% last year after several years of little or no increase. The company emitted nearly 80.9 million metric tons of carbon dioxide equivalent in 2025. By comparison, that’s slightly higher than the nation of New Zealand’s emissions.

Amazon disclosed its climate-related data in its most comprehensive sustainability report to date, which includes a breakdown of its carbon sources, water use and other environmental impacts.

Not surprisingly, energy use showed the biggest rate of increase in the 2025 carbon tally as Amazon and other tech companies are working to rapidly expand their data center capacity to meet AI computing demand.

For the first time since 2019, the company also reported an uptick in its “carbon intensity” — a measure of how much carbon was emitted relative to each dollar of revenue. Amazon has promoted this metric as a sign that it can decouple its growth from its climate impacts.

Despite emissions moving in the wrong direction and ongoing data center-driven challenges, the Seattle-area company remains committed to its pledge of net-zero carbon emissions by 2040.

When it comes to that goal, “I remain confident and optimistic in the overarching vision and the long-term progress we continue to make toward it,” said Kara Hurst, Amazon’s chief sustainability officer, in the foreword to the company’s annual report.

The report highlights areas of success that include:

• Data center efficiency: Amazon’s data centers are 9% more efficient than the public cloud average and 30% more efficient than on-premises data centers at directing energy toward computing rather than cooling, lighting or overhead.
• Data center water use: Amazon is seven times more efficient in its water use than the industry average thanks to its use of air cooling at most sites, most of the year.
• 100% clean energy overall: For the third year running, Amazon matched its company-wide electricity use with an equivalent volume of purchased clean energy, although it technically still draws on fossil fuels for some of its energy.
• Electric vehicle fleet: It has the largest corporate EV fleet in North America, with more than 52,700 delivery vans worldwide. It’s halfway to meeting its 2030 goal of 100,000 EVs.

The company also reported improvements in reducing packaging and plastic use in delivered items; increasing use of low-carbon building materials in data center construction; and progress toward becoming water positive at its data centers, meaning it aims to replenish more water to communities than it uses.

The Amazon-backed Climate Pledge — an effort to get other organizations to commit to net-zero carbon emissions by 2040 — has grown to 656 signatories after adding 107 companies this year. It marks a notable increase at a time when companies are growing quieter about climate commitments, with some stepping back from earlier goals.

But the surge in data center investment shows little sign of slowing, which will keep complicating Amazon’s path to lower emissions. CEO Andy Jassy said Amazon expects to spend a record $200 billion in capital expenditures this year, including “AI, chips, robotics, and low-Earth orbit satellites.”

Not all reactions to that buildout have been positive — even within the company. Members of Amazon Employees for Climate Justice this month testified before the Seattle City Council in favor of data center requirements for renewable energy and labor protections, though Amazon doesn’t operate any data centers within city limits.

In the report, Amazon CSO Hurst acknowledged that AI-fueled advances could catalyze sustainability solutions or slow progress toward climate goals.

“But what alternative do we have,” she said, “but to continue to invest, learn, and move forward to try to solve one of the world’s most challenging issues?”