As the global digital and intelligent transformation accelerates, the demand for computing power has been rising rapidly. The release of Open AI’s ChatGPT has attracted widespread attention to generative artificial intelligence (AI), which is penetrating all aspects of business and daily life. With the continuous improvement of the complexity and capabilities of AI models, the demand for computing power is also increasing dramatically.

The exponential growth of computing power has led to a significant increase in data-center energy consumption, resulting in increased carbon emissions for the entire industry. In 2022, global data centers consumed about 460 terawatt-hours (TWh) of electricity, accounting for about 1.7 percent of global electricity consumption. It is estimated that data-center electricity consumption will keep growing at an annual rate of 6–22 percent reaching 750–2,300 TWh by 2030. This will lead to annual carbon emissions of approximately 340 million–1,040 million tons, about 0.9–2.8 percent of global carbon emissions based on the 2023 level.

Transitioning data centers to reduce emissions is a global imperative, but it faces four key challenges: poor coordination in energy infrastructure planning, untapped energy efficiency potential in buildings and IT systems, difficulty in scaling up green electricity consumption, and weak policy and market incentives. This report analyzes these challenges and proposes pathways for decoupling the growth of data centers from rising emissions. Key actions include optimizing data center location and design, improving energy efficiency through applying more rigorous standards, adopting low-carbon and grid-friendly power consumption behaviors, and fostering green development through policy and market collaboration.