PwC Report Tracks Data Centre Impact on Decarbonisation

PwC’s Third Annual State of Decarbonization Report finds businesses are continuing to invest in sustainability programmes as energy demand linked to AI and digital infrastructure places a greater focus on operational efficiency and emissions management.

The report states that 23% of companies are increasing sustainability and decarbonisation ambitions, compared with 18% reducing them. PwC also says 82% of organisations are either maintaining or accelerating their sustainability timelines.

For the data centre sector, the findings arrive as operators manage rising electricity consumption from AI workloads, alongside pressure to reduce emissions and improve energy performance.

PwC identifies energy optimisation, supplier engagement and operational efficiency as central themes for organisations seeking to balance sustainability targets with commercial performance.

AI growth reshapes energy demand

The report highlights how AI adoption is increasing pressure on power infrastructure and sustainability planning, particularly for hyperscale data centres supporting cloud and AI services.

PwC says electricity prices have risen between 7% and 25%, while global industrial energy efficiency investment grows by 45% between 2020 and 2025 to reach around US$30bn.

The consultancy also finds that companies investing more heavily in climate transition activities are achieving valuation premiums ranging from 15% to 59% across several sectors.

For data centre operators, energy efficiency is becoming a larger part of long-term planning as facilities support higher-density AI infrastructure.

Rising AI demand is also affecting Scope 2 emissions management. PwC notes that expanding hyperscale infrastructure is increasing electricity consumption faster than clean energy supply can scale in some regions.

According to the report, this imbalance contributes to higher power prices and increased reliance on fossil fuel generation.

In the US, the International Energy Agency (IEA) projects that the majority of the increase in data centre electricity demand through 2030 will be largely met by natural gas, potentially hindering the pace of grid decarbonisation.

PwC also points to the role AI can play in operational efficiency. The report states that 60% of organisations already use AI for operational decarbonisation, primarily through process optimisation, predictive maintenance and energy monitoring.

“What the data shows is that the business case for decarbonisation is getting stronger, not weaker,” says David Linich, Decarbonization and Sustainable Operations Consultant and Partner at PwC.

“Even in a tougher environment, most companies are staying the course and the leaders are shifting from broad ambition to disciplined execution that supports resilience, growth and long-term value.”

Efficiency and procurement strategies

PwC says organisations are becoming more selective with sustainability investment, focusing on projects with measurable operational returns.

Across industrial and infrastructure-heavy sectors, companies are reducing overall decarbonisation spending while improving outcomes through energy demand reduction and operational optimisation.

The report says 69% of businesses remain on track to meet Scope 1 and 2 emissions targets. However, Scope 3 emissions continue to present difficulties, with only 56% of companies currently on track.

Supply chain visibility is identified as a major operational challenge.

PwC finds that 25% of companies lack visibility beyond tier 1 suppliers, while only 18% consistently track supplier activities and emissions across multiple supplier tiers.

For data centre operators managing extensive construction, equipment and technology supply chains, procurement visibility is becoming increasingly important as sustainability requirements extend across infrastructure delivery.

“One of the clearest findings in the report is that supply chain visibility is still a major gap,” David says.

“Only 18% of companies consistently track supplier activities and emissions past their direct suppliers, which means many businesses still lack line of sight into key upstream risks and where the biggest pockets of Scope 3 emissions exist.

“The companies making stronger progress are the ones treating supplier engagement as an operational priority – improving visibility, setting clearer expectations and building more accountability into procurement.”

The report says 64% of companies now operate structured supplier decarbonisation programmes, although only 7% fully incentivise supplier action across their supply chains.

Similarly, 63% have implemented supplier requirements at scale, but only 13% consistently verify and enforce them.

Data centres and operational decarbonisation

PwC’s findings also reflect wider changes across infrastructure-heavy sectors where capital planning, electrification and process efficiency are becoming more closely tied to emissions reduction.

The report notes that manufacturing and operationally intensive industries are increasingly linking decarbonisation strategies to asset replacement cycles and long-term operational planning.

For data centre operators, this mirrors ongoing investment in efficient cooling systems, energy monitoring platforms and infrastructure modernisation designed to support growing AI demand.

“In manufacturing and other operationally intensive sectors, the story is increasingly about disciplined execution,” David says.

“We’re seeing companies make steady progress on Scope 1 and 2 targets, but the harder work now is reducing on-site emissions, where changes are capital-intensive and operationally complex.

“The leaders are tying decarbonization to asset replacement cycles, process efficiency and smarter capital planning so they can improve resilience and performance at the same time.”

PwC also notes that reducing energy intensity and managing demand more effectively provides opportunities for businesses and governments to accelerate sustainability programmes while supporting growing digital infrastructure requirements.