A surge in data centres is projected to generate approximately 2.5 billion metric tons of carbon dioxide-equivalent emissions globally by the end of this decade, spurring increased investments in decarbonisation initiatives, according to Morgan Stanley research.
Hyperscalers such as Google, Microsoft, Meta, and Amazon are rapidly expanding electricity-intensive data centres to advance their AI and cloud computing capabilities. Simultaneously, these companies remain committed to reducing their centres’ global warming emissions by 2030.
“This creates a large market for decarbonisation solutions,” Morgan Stanley’s report stated, noting that greenhouse gas emissions from the global data centre industry will account for nearly 40% of the annual emissions of the entire US.
The expansion of these vast computer warehouses is expected to drive investments in clean energy development, energy-efficient equipment, and green building materials. Additionally, technologies like carbon capture, utilisation, and sequestration (CCUS) and carbon dioxide removal (CDR) are anticipated to gain momentum as tech companies strive to meet their climate commitments, according to the research.