The rapid growth of cloud computing has created serious environmental issues, largely because the data centers around the world consume a huge amount of energy, leading to carbon emissions. This chapter discusses the role of Artificial Intelligence (AI) toward transforming the carbon footprint reduction challenges in cloud data centers that include energy efficiency, renewable energy integration, and carbon-aware computing. Its leading techniques are dynamic resource scheduling , AI cooling optimization, and AI-powered data center architecture. The chapter discusses also AI for real-time carbon tracking and geospatial load shifting to cleaner energy areas. Industry case studies with technology leaders such as Google and Microsoft show real-world applications and environmental impact. Through adoption of AI technologies cloud providers may notably decrease the energy consumption and consequential greenhouse gas emissions toward a sustainable digital future.