Corporate Climate Initiatives Expand as Data Centers Face Environmental Scrutiny
Companies advance carbon reduction efforts while data center operators address water usage and environmental impact concerns.
Climate standard-setting organization SBTi announced new rules allowing companies pursuing net-zero emissions targets to incorporate carbon removals and environmental credits into their decarbonization strategies. The updated guidelines represent a shift in how businesses can account for their climate commitments.
Meanwhile, Amazon disclosed that its data centers consumed 2.5 billion gallons of water in 2025, though the company reported a 2% decrease in water usage at facilities it directly owns and operates compared to 2024 levels. This reduction occurred despite Amazon's continued expansion of its data center infrastructure to support growing cloud computing demand.
The technology sector's environmental impact has come under increased scrutiny as digital infrastructure expands. Data centers require substantial water resources for cooling systems, while their energy consumption contributes significantly to corporate carbon footprints.
In the private equity sector, KKR launched a $10 billion data center investment group led by a former Amazon Web Services executive, signaling continued investor interest in digital infrastructure despite environmental concerns.
Separately, a UK venture announced plans to develop Europe's largest direct air capture facility for removing carbon dioxide from the atmosphere, highlighting the growing market for carbon removal technologies as companies seek solutions to meet climate commitments.