A new research study has shown that tech giants Google and Microsoft each consumed 24 terawatt-hours of electricity in 2023, which is more than the consumption of more than 100 countries.
Analysis by Michael ThomasAccording to X, Google and Microsoft consumed the same amount of energy as Azerbaijan, whose GDP is estimated at $78.7 billion. Google’s revenues in 2023 amounted to $307.4 billion, and Microsoft’s revenues were $211.9 billion.
The massive energy consumption underscores the huge environmental impact of these companies. But it also serves as a reminder of their sheer size and the positive impact they can have through more sustainable initiatives.
Tech companies consume more than many countries.
Iceland, Ghana, the Dominican Republic and Tunisia consumed 19 TWh, while Jordan consumed 20 TWh, highlighting the sheer size of the two tech companies. Libya (25 TWh) and Slovakia (26 TWh) consumed slightly more energy.
Comparing entire countries and individual companies highlights the massive energy demands of big tech companies. Consumption also points to the environmental impacts of data centers, which are used to power cloud services including storage and computing, as well as the next generation of artificial intelligence.
The high electricity consumption of these companies calls for ongoing discussions about sustainability and the adoption of renewable energy. Both Google and Microsoft have pledged to be carbon neutral or carbon-neutral by the end of the decade, and investments in clean energy and similar energy sources are already increasing dramatically.
With market caps of $2.294 trillion and $3.372 trillion, respectively, Google and Microsoft currently rank fourth and second in market cap globally. With operations the size of an entire country, all eyes are on them as economies around the world continue to prevent and reverse environmental damage.
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