Global Data Center Industry to Generate 2.5 Billion Tons of CO2 by 2030, Morgan Stanley Reports

The rapid expansion of data centers worldwide is projected to produce around 2.5 billion metric tons of carbon dioxide-equivalent emissions by 2030, according to a recent Morgan Stanley report. This surge in emissions is being driven by hyperscalers—tech giants like Google, Microsoft, Meta, and Amazon—who are building energy-intensive data centers to support the growth of artificial intelligence and cloud computing technologies.

Despite their expansion, these companies have pledged to significantly reduce emissions from their operations by 2030. Morgan Stanley's research indicates that the emissions from the global data center industry through the end of the decade will equate to about 40% of the annual emissions produced by the entire U.S.

This boom in data center construction is expected to spark substantial investments in decarbonization solutions, including clean energy development, energy-efficient technologies, and sustainable building materials. The report also highlights the potential for increased deployment of carbon capture, utilization, and sequestration (CCUS) technologies, as well as carbon dioxide removal (CDR) processes, as companies strive to meet their climate goals.

The drive to balance data center growth with environmental commitments underscores the need for innovative approaches to reducing the carbon footprint of this rapidly expanding sector.