Exclusive: Data center firm inks carbon removal deal as AI demand surges
TL;DR
NTT Data, a major data center operator, is buying carbon removal credits from startup Climeworks to help meet its climate goals, the companies exclusively shared with Axios on Thursday. Why it matters: Surging energy demand from AI is increasing scrutiny of data centers' emissions — and could expand the pool of buyers for carbon removal as the sector faces setbacks. Driving the news: Japan-based NTT Data Group has agreed to buy an unspecified amount of carbon removal credits from Climeworks — the first agreement between the Switzerland-based startup and a major AI infrastructure company. The companies aren't disclosing terms of the agreement, but Climeworks co-CEO Christoph Gebald said the deal could provide a few hundred thousand tons over a decade. Reality check: That's meaningful for a nascent industry, but it's quite small relative to the emissions tied to the AI boom — to say nothin.
Nauti's Take
Nauti sees an important signal here: hyperscalers are starting to actually price AI emissions rather than just publishing net-zero PR — and Climeworks lands its first major AI anchor customer. The catch: a few hundred thousand tons over a decade is near-symbolic compared to the exploding data center footprint.
The deal still matters because it sets a benchmark competitors like Microsoft and Google now have to measure up to.
Summary
NTT Data, a major data center operator, is buying carbon removal credits from startup Climeworks to help meet its climate goals, the companies exclusively shared with Axios on Thursday. Why it matters: Surging energy demand from AI is increasing scrutiny of data centers' emissions — and could expand the pool of buyers for carbon removal as the sector faces setbacks.
Driving the news: Japan-based NTT Data Group has agreed to buy an unspecified amount of carbon removal credits from Climeworks — the first agreement between the Switzerland-based startup and a major AI infrastructure company. The companies aren't disclosing terms of the agreement, but Climeworks co-CEO Christoph Gebald said the deal could provide a few hundred thousand tons over a decade.
Reality check: That's meaningful for a nascent industry, but it's quite small relative to the emissions tied to the AI boom — to say nothin
Sources