Microsoft Cuts Carbon Removal Buying 80% Amid AI Push

Microsoft purchased 8.55 million tonnes of carbon removal credits through mid-July 2026, approximately 80% less than during the same period in 2025, putting the company on course for its first annual purchasing decline since 2023. The slowdown comes as Microsoft increases spending on data centres and AI infrastructure, while its carbon footprint rose 25% last year partly because of growing electricity demand. Despite the reduction, Microsoft remains the market’s dominant buyer, accounting for almost half of 2026 transactions and 41% of global carbon removal purchases since 2020. Global removal credit sales also fell 66% year on year to 18 million tonnes through mid-July. Microsoft said the adjustment reflected financial discipline rather than reduced climate ambition. Meanwhile, Frontier committed $915 million to new projects, indicating some diversification in demand. However, Microsoft’s scale means its decisions will continue influencing project financing, technology deployment and confidence across the developing carbon removal market.
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