AI push? Google, Microsoft consume more energy than some countries
In 2023, technology giants Google and Microsoft each consumed a staggering 24 terawatt-hours (TWh) of electricity, surpassing the energy usage of over 100 countries, according to research conducted by analyst Michael Thomas. This level of energy consumption matches that of Azerbaijan, a country with an estimated GDP of $78.7 billion and a population of over 10 million. The substantial energy usage by these companies underscores the magnitude of their impact on the environment.
Consumption exceeds individual countries
The energy consumption of Google and Microsoft individually outstripped that of countries like Iceland, Ghana, the Dominican Republic, and Tunisia, each of which consumed 19TWh. Jordan's consumption was slightly higher at 20TWh but still fell short of the tech companies' usage. Only Libya and Slovakia, consuming 25TWh and 26TWh, respectively, used slightly more power than Google and Microsoft.
Big Tech's energy demands driven by data centers
The enormous energy consumption is largely fueled by the tech giants' data centers, which power their cloud services including storage and compute capabilities. These facilities also support the development and operation of a new generation of artificial intelligence (AI) technologies. The comparison between the companies' energy requirements and those of entire nations underscores the colossal energy demands of Big Tech.
Pledge toward carbon neutrality, aim to reduce environmental impact
The high electricity consumption by Google and Microsoft has ignited discussions about sustainability and the adoption of renewable energy. Both companies have committed to becoming carbon-free or carbon-negative by the end of this decade. Depite having significantly scaled up investments in cleaner energies, Google's greenhouse gas emissions have surged by almost 50% since 2019. In 2023 alone, Google released 14.3 million metric tons of carbon dioxide, marking a 13% increase from the previous year.
Google, Microsoft among world's most valuable companies
With market capitalizations of $2.294 trillion and $3.372 trillion, respectively, Google and Microsoft rank as world's fourth and second-most valuable companies. Their scale of operations, comparable to that of entire nations, places them under intense scrutiny as global economies strive to prevent and reverse environmental damage.
