Data Centers Spark Billions in Decarbonization Investment

A surge in data centers is predicted to generate 2.5 billion metric tons of carbon dioxide-equivalent emissions by 2030, spurring decarbonization investments. Hyperscalers like Google, Microsoft, Meta, and Amazon are rapidly expanding their energy-intensive data centers while pledging to cut emissions. Investments in clean energy, efficient technology, and carbon capture are expected to rise.

A surge in data centers is projected to produce approximately 2.5 billion metric tons of carbon dioxide-equivalent emissions worldwide by the end of the decade, according to a research report from Morgan Stanley.

This rapid growth is being spearheaded by hyperscalers such as Google, Microsoft, Meta, and Amazon, who are expanding their AI and cloud computing capabilities. Concurrently, these companies are maintaining their commitments to drastically reduce carbon emissions from their data centers by 2030.

"This creates a large market for decarbonization solutions," noted the Morgan Stanley report, estimating that emissions from global data centers will equal about 40% of the U.S. annual total. The construction of these massive data hubs is expected to drive further investment in clean energy, energy-efficient equipment, green building materials, and carbon capture technologies as firms strive to meet their climate goals.

(With inputs from agencies.)