Big Tech’s Carbon Credit Spending Spree Fuels Market Surge

Microsoft and Google have ignited a buying frenzy in the carbon credit market, with purchases soaring over the past two years. Premium carbon credits now trade at nearly four times the price of cheaper forest-based offsets. Tech giants have funneled hundreds of millions into permanent carbon removal since 2019, with total investments reaching $10 billion when accounting for spot purchases and long-term contracts.

The AI boom is directly fueling this spending. As companies expand data centers to meet AI demand—many still powered by fossil fuels—profits and emissions rise in tandem. "The companies that are performing well are investing heavily, and the reason why these companies are performing well is AI," noted Brennan Spellacy of climate tech firm Patch during COP30 discussions.

While major tech firms publicly commit to net-zero targets, their growing carbon footprints tell a different story. The market surge reflects both genuine climate efforts and the necessity to offset emissions from energy-intensive AI infrastructure.