• 2.5 Billion Tons of CO2: Data centers are set to emit 2.5 billion metric tons of CO2-equivalent by 2030.
• Decarbonization Opportunities: This surge in emissions opens a substantial market for decarbonization solutions.
• Tech Giants Lead the Way: Companies like Google, Microsoft, Meta, and Amazon are driving both emissions and investments in green technologies.

The global data center industry is expected to emit approximately 2.5 billion metric tons of carbon dioxide-equivalent through 2030, according to a recent report from Morgan Stanley. This level of emissions represents about 40% of the total annual greenhouse gas emissions of the entire United States.

Hyperscalers—tech giants like Google, Microsoft, Meta, and Amazon—are rapidly expanding data centers to support the growing demands of artificial intelligence and cloud computing. While these facilities are essential for technological advancements, they are also significant consumers of electricity, contributing heavily to global carbon emissions.

Morgan Stanley’s report highlights that this growth presents a major opportunity for the development of decarbonization solutions. “This creates a large market for decarbonization solutions,” the report states, underscoring the potential for investments in clean energy, energy-efficient technologies, and green building materials.

Related Article: Morgan Stanley Report: Value Creation Drives Corporate Sustainability, Despite High Investment Costs

As these companies push to meet their 2030 climate commitments, investments in carbon capture, utilization, and sequestration (CCUS) technologies and carbon dioxide removal (CDR) processes are expected to rise. These efforts are critical in ensuring that the tech sector can continue its expansion while mitigating its environmental impact.

The dual challenge of expanding digital infrastructure and reducing emissions is prompting significant investments in sustainable technologies, aiming to align industry growth with global climate goals.