AI Data Centers To Become Major Emitters By 2030, Morgan Stanley Warns

AI Data Centers To Become Major Emitters By 2030, Morgan Stanley Warns - Carbon Herald

Artificial intelligence (AI) data centers are poised to become a significant source of greenhouse gas (GHG) emissions by 2030, bne IntelliNews reported Thursday, citing a report from Morgan Stanley.

At the same time, the report also highlights the potential for a booming market around decarbonization solutions.

As the demand for AI and cloud computing surges, the number of server farms is expected to expand dramatically, leading to an estimated 2.5 billion tons of carbon dioxide equivalent (CO2e) emissions globally by the end of the decade.

This figure is comparable to the amount of CO2 absorbed by the world’s forests each year.

The rapid growth of tech giants, or “hyperscalers,” such as Google, Microsoft, Meta, and Amazon, is driving this rise in emissions.

These companies are scaling up their AI and cloud infrastructure to meet growing demand while maintaining their commitment to decarbonization targets by 2030.

Relevant: KALiNA To Develop AI Data Centers Powered By Natural Gas Paired With Carbon Capture

As tech companies seek to mitigate their increasing energy use, they may invest heavily in clean energy, energy-efficient technologies, and sustainable construction practices, according to Morgan Stanley.

The emissions from global data centers are expected to surpass those of traditional industries like steel or agriculture, contributing to around 40% of the United States’ annual GHG output.

While technologies such as carbon capture, utilization, and storage (CCUS) and carbon dioxide removal (CDR) are expected to play a crucial role in addressing emissions, these solutions are still in their early stages of development and not yet widely deployed.

Therefore, as the AI industry continues to grow, substantial investments in these decarbonization technologies will be essential to achieving climate goals.

Read more: New AI Breakthroughs Boost Carbon Capture Efficiency

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