The rapid expansion of artificial intelligence (AI) is exposing gaps in data centre environmental reporting, making it hard to assess the industry’s climate impact, according to carbon disclosure specialist CDP.
"We’re in discussions with the market to say, what other data do we need now,” said Sherry Madera, chief executive of CDP, a nonprofit, in an interview at the COP31 United Nations climate conference in Antalya on Nov 11. "How is it that we can actually surface some more granularity in order to be able to understand what decisions are being taken?”
The biggest US AI companies have yet to publish detailed accounts of their energy or emissions performance, making their contributions to global warming difficult to measure. Emissions vary depending on the model and chips used, where computing takes place and how the data centre is powered, while AI’s growing electricity demand risks slowing emissions declines achieved through renewables and electrification.
Data centre electricity demand is likely to quadruple by 2035 and account for seven per cent of global power consumption, BloombergNEF said in a report released on Nov 11. The Monarch data centre campus in West Virginia, proposed by AI computing firm Nscale Ltd, would need more than 8 gigawatts of power to run – about the amount required by New York City.
Hyperscalers have disclosed emissions to CDP for 10 to 15 years, Madera said, but more detail is needed to assess individual data centres and the computing power they provide.
"The question is, is it at the site level? Is it broken down and granular enough to make decisions about where companies buy AI computing power,” she said.
Customers and investors provide companies with a commercial incentive to disclose environmental data, alongside regulatory requirements, Madera said. She also pointed to water use as a concern because data centres require it for cooling.
"We’re very focused on energy – yes, rightly so,” Madera said. "But water and the scarcity of water is a big consideration for where and how data centres are being built.”
CDP’s voluntary disclosure platform covers more than 20,000 companies and works with 540 of the world’s largest financial institutions, which use its data for capital allocation, portfolio construction and emissions analysis, Madera said. She said CDP has "a strong relationship with most of the hyperscalers” which have disclosed emissions through its platform.
The organisation’s website lists Alphabet Inc’s Google, via the Tides Foundation, as a core funder, while data-centre operator CyrusOne LP is among companies that paid an enhanced disclosure administration fee for the 2025 cycle.
Madera said companies should increasingly focus on credible plans to transition away from fossil fuels, rather than setting distant climate targets.
"The transition plan is now the most important thing for companies to be able to stand behind,” she said. "If it’s not credible and if you’re not actually disclosing the data year on year, including predictions, you’re really going to lose your credibility about those targets.”
"A target in 10, 15 years – that’s beyond any of their tenure years,” Madera said, referring to corporate executives.
COP31 host Türkiye is seeking backing at the summit for a pledge urging the use of artificial intelligence to tackle global warming, even as data centres manage environmental risks. – Bloomberg
