Global data centre industry to generate 2.5B tons of CO2 by 2030

Global data centre industry to generate 2.

• The global data centre industry is projected to emit 2.5 billion metric tons of CO2-equivalent by 2030, driving urgent decarbonisation efforts.
• Investments in clean energy, energy-efficient equipment, and carbon capture technologies are expected to rise as tech giants aim to meet climate goals.

OUR TAKE
The tech industry’s rapid data centre expansion could emit 2.5 billion metric tons of CO2 by 2030, clashing with UN climate goals. Despite pledges, companies must significantly increase decarbonisation efforts to align with the Paris Agreement and Sustainable Development Goals, making sustainability a critical priority.
–Jasmine Zhang, BTW reporter

What happened

The rapid expansion of data centres, driven by tech giants like Google, Microsoft, Meta, and Amazon, is projected to generate around 2.5 billion metric tons of CO2-equivalent emissions by the decade’s end, according to Morgan Stanley.

As these hyperscalers push for advanced AI and cloud technologies, they simultaneously face increasing pressure to meet their climate commitments by 2030.

This growth is expected to fuel significant investments in decarbonisation solutions, including clean power development, energy-efficient equipment, green building materials, and technologies like carbon capture, utilisation, and sequestration (CCUS) as well as carbon dioxide removal (CDR) processes.

The environmental impact of the global data centre industry could reach 40% of the U.S. ‘s annual emissions, making the need for sustainable practices more urgent than ever.

Also read: Empyrion Digital expands into Japan with new AI-ready data centre

Also read: Microsoft secures landmark carbon capture deal with 1PointFive

Why it’s important

Data centres are expanding rapidly and are expected to emit 2.5 billion tons of carbon dioxide equivalent by 2030. Hyperscalers like Google, Microsoft, and Amazon are not just expanding their digital empires but also their carbon footprints.

Despite pledges to reduce emissions, their current trajectory is at odds with the United Nations’ Sustainable Development Goals (SDGs) and the Paris Agreement’s targets for limiting global warming. While investments in decarbonisation, renewable energy, and carbon capture are promising, they must be significantly scaled up to make a real impact.

The tech industry’s responsibility goes beyond innovation. It must lead in sustainability or risk undermining global climate efforts. Meeting these UN targets is not just a corporate responsibility. It’s a global imperative.