On Earth Day, nine of the world’s major built environment and sustainable finance organizations launched the Greening AI Data Centers Coalition (GADCC)—a new global initiative to set clear, credible standards for sustainable data center development as artificial intelligence (AI)-driven demand for computing power accelerates worldwide.
According to the groups, the GADCC will develop transparent benchmarks that define what “green” genuinely means for data centers, 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.
Founding members are the U.S. Green Building Council (USGBC), 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), and the Indian Green Building Council (IGBC)— combining expertise in building certification, performance benchmarking, green finance, and sustainability standards.
The Need for Sustainable Data Centers
Cities around the globe are increasingly challenged by the rapid growth of data centers powering AI 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, according to the coalition.
Data centers currently consume roughly 1.5-2% 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. The coalition said 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 centers has made the challenge of greening digital infrastructure increasingly urgent. If new data centers are powered by fossil fuels or draw heavily on scarce water resources, they could slow global decarbonization efforts and undermine the long‑term viability of AI itself, according to the coalition. With investor interest in green data centers 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.
GADCC Priorities
The coalition’s initial program of work will focus on two priorities:
- Common sustainability criteria: Developing an internationally aligned framework of environmental and social performance standards for data centers, covering energy, carbon, water, waste, biodiversity, and community impact.
- Market enablement: Supporting the development of credible green finance instruments— including green bonds and sustainability-linked loans—for data center investment that meets the coalition’s standards.
Peter Templeton, president and CEO of the USGBC, said, “As a strategic asset class, data centers are central to technological innovation and economic growth. Through this coalition, we are committing our collective expertise to balancing this growth with responsible development that protects energy affordability, local resources, and quality of life.”
The GADCC noted it is open to additional partners, including investors, data center owners and operators, and climate and water advocacy organizations, to help scale credible action across the global data center market.
ALSO READ: How Data Center FMs Can Create More Profitable and Sustainable Operations