Tech giants Google and Microsoft are consuming more electricity than some large countries, according to a recent study. The two companies are projected to each use 24 TWh of electricity in 2023, surpassing the combined consumption of over 100 nations.
This substantial energy consumption underscores the significant environmental impact of these tech giants. Google and Microsoft’s energy usage is equivalent to that of countries like Azerbaijan, with Google’s revenue expected to reach $307.4 billion and Microsoft’s at $211.9 billion in 2023.
Comparatively, countries like Iceland, Ghana, the Dominican Republic, and Tunisia each consume 19 TWh, while Jordan consumes 20 TWh. Libya and Slovakia use slightly more electricity at 25 TWh and 26 TWh, respectively.
The massive energy demands of these companies highlight the environmental impact of data centers powering cloud services and AI. As such, there is a pressing need for discussions on sustainability and the adoption of renewable energy sources.
Google and Microsoft have committed to becoming carbon-free or carbon-negative by the end of the decade, with significant investments in cleaner energy. This move is crucial given that these companies are larger in terms of market capitalization than entire nations, underlining the importance of their environmental efforts.
Both companies are among the top in the world, with market capitalizations of $2.294 trillion and $3.372 trillion, respectively. Their initiatives to mitigate and reverse environmental harm are commendable, setting an example for other industry players to follow.