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Global data centre industry to emit 2.5 billion tons of CO2 through 2030: Morgan Stanley
A surge in data centers is projected to generate around 2.5 billion metric tons of carbon dioxide-equivalent emissions globally by the end of the decade, prompting increased investments in decarbonization efforts. Major tech companies like Google, Microsoft, Meta, and Amazon are driving this growth while committing to reduce emissions from their centers by 2030.A boom in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide-equivalent emissions globally through the end of the decade, and accelerate investments in decarbonization efforts, according to Morgan Stanley research. Hyperscalers, which include Google , Microsoft , Meta and Amazon , are driving the swift proliferation of electricity-guzzling data centers to expand their artificial intelligence and cloud computing technologies. At the same time, the companies are holding onto pledges to slash global warming emissions from their centers by 2030. "This creates a large market for decarbonization solutions," according to Morgan Stanley's research report on Monday, which said the greenhouse gas emissions by the global data center industry will amount to about 40% of what the entire U.S. emits in a year. The build-out of the giant computer warehouses will increase investments in clean power development; energy efficient equipment and so-called green building materials, Morgan Stanley said. Carbon capture, utilization, and sequestration (CCUS) technology and carbon dioxide removal (CDR) processes are also expected to get a boost as tech companies try to keep their climate promises, the report said.
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Global Data Center Industry to Emit 2.5 Billion Tons of CO2 Through 2030, Morgan Stanley Says
NEW YORK (Reuters) - A boom in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide-equivalent emissions globally through the end of the decade, and accelerate investments in decarbonization efforts, according to Morgan Stanley research. Hyperscalers, which include Google , Microsoft , Meta and Amazon , are driving the swift proliferation of electricity-guzzling data centers to expand their artificial intelligence and cloud computing technologies. At the same time, the companies are holding onto pledges to slash global warming emissions from their centers by 2030. "This creates a large market for decarbonization solutions," according to Morgan Stanley's research report on Monday, which said the greenhouse gas emissions by the global data center industry will amount to about 40% of what the entire U.S. emits in a year. The build-out of the giant computer warehouses will increase investments in clean power development; energy efficient equipment and so-called green building materials, Morgan Stanley said. Carbon capture, utilization, and sequestration (CCUS) technology and carbon dioxide removal (CDR) processes are also expected to get a boost as tech companies try to keep their climate promises, the report said. (Reporting by Laila Kearney; Editing by Marguerita Choy)
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Global data center industry to emit 2.5 billion tons of CO2 through 2030, Morgan Stanley says
NEW YORK (Reuters) - A boom in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide-equivalent emissions globally through the end of the decade, and accelerate investments in decarbonization efforts, according to Morgan Stanley research. Hyperscalers, which include Google , Microsoft , Meta and Amazon , are driving the swift proliferation of electricity-guzzling data centers to expand their artificial intelligence and cloud computing technologies. At the same time, the companies are holding onto pledges to slash global warming emissions from their centers by 2030.
[4]
Global data centre industry to emit 2.5 billion tons of CO2 through 2030, Morgan Stanley says
A boom in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide-equivalent emissions globally through the end of the decade, and accelerate investments in decarbonization efforts, according to Morgan Stanley research. Hyperscalers, which include Google, Microsoft , Meta and Amazon, are driving the swift proliferation of electricity-guzzling data centres to expand their artificial intelligence and cloud computing technologies. At the same time, the companies are holding onto pledges to slash global warming emissions from their centres by 2030. Google weighs large data centre in Vietnam, source says, in nation's first by U.S. big tech "This creates a large market for decarbonization solutions," according to Morgan Stanley's research report on Monday, which said the greenhouse gas emissions by the global data center industry will amount to about 40% of what the entire U.S. emits in a year. The build-out of the giant computer warehouses will increase investments in clean power development; energy efficient equipment and so-called green building materials, Morgan Stanley said. Carbon capture, utilisation, and sequestration (CCUS) technology and carbon dioxide removal (CDR) processes are also expected to get a boost as tech companies try to keep their climate promises, the report said. Read Comments
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Morgan Stanley report highlights the significant environmental impact of the global data center industry, projecting 2.5 billion tons of CO2 emissions through 2030. The study emphasizes the need for sustainable practices in the rapidly growing sector.
A recent report by Morgan Stanley has shed light on the substantial environmental impact of the global data center industry. According to the study, the sector is projected to emit a staggering 2.5 billion tons of carbon dioxide (CO2) through 2030 1. This revelation underscores the urgent need for sustainable practices in an industry that is experiencing rapid growth due to increasing digitalization and data consumption.
The data center industry has been expanding at an unprecedented rate, driven by the growing demand for cloud computing, artificial intelligence, and other data-intensive technologies. Morgan Stanley's report indicates that the sector's energy consumption is expected to double by the end of the decade 2. This surge in energy usage directly correlates with the projected increase in carbon emissions.
The study highlights that a significant portion of these emissions will originate from the Asia-Pacific region, particularly China and India. These countries are experiencing a boom in data center construction to meet the rising demand for digital services 3. The concentration of emissions in these areas raises concerns about the global distribution of environmental impact and the need for region-specific sustainability strategies.
In response to these projections, major technology companies and data center operators are increasingly focusing on sustainability initiatives. Many are committing to ambitious goals, such as achieving carbon neutrality or even negative emissions in the coming years 4. These efforts include investing in renewable energy sources, improving energy efficiency, and exploring innovative cooling technologies to reduce power consumption.
The Morgan Stanley report also highlights the challenges faced by the industry in balancing growth with environmental responsibility. While the demand for data centers continues to rise, companies must navigate the complexities of implementing sustainable practices without compromising performance or reliability. This situation presents both challenges and opportunities for innovation in green technologies and sustainable data center design.
As awareness of the environmental impact of data centers grows, there is increasing pressure from regulators and stakeholders for the industry to adopt more sustainable practices. The report suggests that future regulations may play a crucial role in shaping the industry's approach to emissions reduction and energy efficiency 1. This regulatory landscape, combined with technological advancements and industry initiatives, will be key factors in determining the sector's environmental impact in the coming years.
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|Global Data Center Industry to Emit 2.5 Billion Tons of CO2 Through 2030, Morgan Stanley Says[3]
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