In 2023, Google and Microsoft each consumed 24 TWh of electricity, which exceeded the consumption of more than 100 countries. However, it should be recognized that both companies also generate more money than many countries.
A detailed analysis shows that the electricity consumption of Google and Microsoft in 2023 is equal to that of Azerbaijan (population 10.14 million) and higher than in some other countries. For example, Iceland, Ghana, the Dominican Republic, and Tunisia each consumed 19 TWh, and Jordan — 20 TWh. Of course, some countries consume more energy than Google and Microsoft. For example, Slovakia (population 5.4 million) consumes 26 TWh.
This comparison emphasizes huge needs of high-tech companies in energy: Google and Microsoft data centers have a significant environmental impact. How efficiently countries and corporations spend energy? It is clear that states have large expenditures that are not related to production and profit — primarily, consumption by the population. But it is still interesting to compare the numbers.
In 2023, Google generated $305.6 billion in revenue, and its economic impact, including tools such as Google Search, Google Cloud, and YouTube, brought approximately $739 billion to the economy, according to the company.
Microsoft published revenue of $211.9 billion for 2023. Keeping in mind that the vast majority of the world’s population uses Microsoft Windows and Microsoft Office, and many online applications run on Microsoft Azure, the economic impact of Microsoft products is likely to be in the trillions of dollars. At the same time, Azerbaijan’s GDP was about $78 billion, Slovakia’s GDP was about $127 billion, and Iceland’s GDP was about $30 billion in 2023.
The economic figures of Google and Microsoft are significantly higher than the GDPs of these countries, emphasizing the enormous financial scale of these tech giants compared to their significant electricity consumption. While Google’s and Microsoft’s significant electricity consumption underscores the need for discussions on sustainability and the introduction of renewable energy sources, these companies are leading the way in the introduction of such sources.
Google has long been a pioneer in the use of renewable energy. Since 2007, the company has been carbon neutral, and by 2030, it aims to have its data centers operating emission-free around the clock. In 2023, Google announced that it would continue to invest in renewable energy projects.
Microsoft plans to become carbon negative by 2030, which means removing more carbon from the environment than it emits. The company also aims for zero waste production and positive water use by the same year. In 2023, Microsoft increased its contracted renewable energy portfolio to more than 19.8 GW, covering projects in 21 countries.
It is difficult to compare the consumption of Google, Microsoft, and Ukraine due to the difficult energy situation in the country. It is known that in the same period, in 2023, Ukraine produced 36.5 TWh. This volume, taking into account periodic purchases of electricity in Europe and its sale in favorable periods, allowed us to meet demand and avoid blackouts. At the same time, this amount means a 19.4% (or 8.8 TWh) reduction in production compared to 2022 — due to the reduction in production capacity as a result of Russian attacks. In 2024, Ukraine’s energy sector suffered new, even more catastrophic attacks.
Sources: Michael Thomas, Tom`s Hardware, «Ukrainian energy»