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Google and Microsoft’s Combined Energy Consumption in 2023 Surpasses 100 Countries, Raises Environmental Concerns

Google and Microsoft, the global tech giants, have collectively consumed an astounding 24 terawatt-hours (TWh) of electricity in 2023, surpassing the energy usage of over 100 countries. This revelation comes from a recent report by analyst Michael Thomas, underscoring the scale of their energy consumption comparable to entire nations.

For context, Azerbaijan, with a GDP of $78.7 billion, used a similar amount of energy. To put it in perspective, countries like Iceland, Ghana, the Dominican Republic, and Tunisia each consumed around 19 TWh, while Jordan used 20 TWh. Libya and Slovakia surpassed this with 25 TWh and 26 TWh respectively.

The demand for energy primarily stems from powering data centers essential for cloud services and advancements in artificial intelligence. This surge in consumption correlates with significant revenue growth for both companies in 2023—Google reported $307.4 billion, and Microsoft reported $211.9 billion in revenue, according to Tech Radar.

However, such substantial energy use also raises environmental concerns. Both companies have committed to environmental goals; Google aims to achieve carbon neutrality, while Microsoft aims to become carbon-negative by the end of the decade. They are ramping up investments in clean energy and energy matching to achieve these ambitious targets.

As leaders in the tech industry, their actions in reducing carbon footprints could set a crucial precedent for other sectors facing similar challenges.

 

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