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Global coalition formed to set sustainability benchmarks for AI-driven data centres amid rising energy and water concerns

#Infrastructure News#Infrastructure#India
Last Updated : 25th Apr, 2026
Synopsis

Nine international organisations, including U.S. Green Building Council and Indian Green Building Council, have launched the Greening AI Data Centers Coalition (GADCC) during the past week to establish global sustainability standards for data centre development. The initiative aims to address environmental challenges linked to rapid growth in AI infrastructure, particularly rising electricity and water consumption. With data centres currently accounting for 1.5–2% of global electricity demand and projected to expand sharply by 2030, the coalition will develop common performance benchmarks and support green finance instruments. The move reflects increasing scrutiny on digital infrastructure within the built environment, with a focus on aligning expansion with climate goals, resource efficiency, and community impact.

A group of nine global organisations, including World Green Building Council, Building Research Establishment, and Climate Bonds Initiative, launched the Greening AI Data Centers Coalition (GADCC) during the past week to establish internationally aligned sustainability benchmarks for data centre development. The initiative responds to the rapid expansion of artificial intelligence infrastructure and its growing impact on energy systems, water resources, and urban environments.


The coalition aims to define clear and transparent criteria for what constitutes a sustainable or “green” data centre, addressing concerns around inconsistent standards and the risk of greenwashing. Its framework is expected to guide investors, developers, operators, and policymakers in directing capital towards projects that minimise environmental impact while supporting operational efficiency and community considerations.

The founding members also include the German Sustainable Building Council, Global Real Estate Sustainability Benchmark, Green Building Council of Australia, Green Building Council South Africa, and Indian Green Building Council, bringing together expertise across building certification, sustainability benchmarking, and green finance.

Data centres have emerged as a rapidly growing segment within the global real estate and infrastructure landscape, driven by increasing demand for computing power to support AI applications. These facilities currently account for approximately 1.5% to 2% of global electricity consumption, with projections indicating that demand could more than double by the end of the decade. Their water usage is also rising, with some facilities consuming volumes comparable to small cities, raising concerns about local resource constraints.

The coalition’s initial programme will focus on developing a unified framework covering energy use, carbon emissions, water consumption, waste management, biodiversity, and community impact. In parallel, it will support the development of green finance instruments such as bonds and sustainability-linked loans, aimed at funding projects that meet these standards.

Industry representatives associated with the initiative indicated that the rapid expansion of data centre infrastructure requires coordinated global standards to ensure that growth aligns with climate commitments and does not strain local utilities or increase costs for communities. They also noted that investor demand for sustainable digital infrastructure is increasing, necessitating reliable benchmarks and transparent reporting mechanisms.

The initiative is open to participation from additional stakeholders, including investors, operators, and advocacy groups, with the objective of scaling adoption of sustainability standards across global markets. The coalition’s work reflects the growing integration of environmental considerations into data centre development, as the sector becomes an increasingly significant component of the built environment.

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