Cities around the globe are increasingly being challenged by the rapid growth of data centres powering artificial intelligence applications, due to concerns about their heavy electricity and water use, their effects on local utility costs, noise pollution, and the relatively small number of long-term jobs they create.
To counter this impact, nine of the world’s leading built environment and sustainable finance organisations* this week launched the Greening AI Data Centres Coalition (GADCC) - a new global initiative to set clear, credible standards for sustainable data centre development as AI-driven demand for computing power accelerates worldwide.
The GADCC will develop transparent benchmarks that define what ‘green’ genuinely means for data centres, helping investors, operators, communities and policymakers cut through greenwashing and direct capital toward facilities that reduce emissions while protecting water resources, energy systems and local communities.
Data centres currently consume roughly 1.5–2 per cent of global electricity, and the International Energy Agency projects demand will more than double by 2030. Their water footprint is growing just as fast, so much so that it intensifies the pressure on local water supplies with facilities in some regions consuming as much water as a small city. Unchecked expansion risks straining local grids, driving up consumer energy costs and crowding out renewable-energy access for other users.
The rapid growth of AI data centres has made the challenge of greening digital infrastructure increasingly urgent. If new data centres are powered by fossil fuels or draw heavily on scarce water resources, they could slow global decarbonisation efforts and undermine the long‑term viability of AI itself.
With investor interest in green data centres rising, there is a growing need for clear, consistent definitions of what ‘green’ AI infrastructure truly means — backed by transparent data and credible benchmarks that protect communities, energy security and the environment.
The coalition’s initial programme of work will focus on two priorities:
1. Common sustainability criteria. Developing an internationally aligned framework of environmental and social performance standards for data centres, covering energy, carbon, water, waste, biodiversity and community impact.
2. Market enablement. Supporting the development of credible green finance instruments - including green bonds and sustainability-linked loans - for data centre investment that meets the coalition’s standards.
*Founding members are the Building Research Establishment (BRE), the Climate Bonds Initiative, the German Sustainable Building Council (DGNB), the Global Real Estate Sustainability Benchmark (GRESB), the Green Building Council of Australia (GBCA), the Green Building Council South Africa (GBCSA), the Indian Green Building Council (IGBC), the U.S. Green Building Council (USGBC), World Green Building Council (WorldGBC) — combining expertise in building certification, performance benchmarking, green finance and sustainability standards.