Microsoft and AI: Advancing Sustainability in the Era of Data Center Dominance

This case examines the sustainability challenges facing Microsoft as it scales its AI-driven operations, focusing on the tensions between business growth and environmental responsibility. The company's fictional vice president of environmental advancement is tasked with addressing the increasing energy and water demands of Microsoft's extensive and growing data center infrastructure, which underpins its AI and cloud services. Despite its ambitious environmental goals to become carbon negative, water positive, and zero waste by 2030, Microsoft's emissions and water usage have risen significantly due to the expansion of its data centers.