NTT: An Energy Debt Reckoning is Coming for Data Centres

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The Gen AI revolution presents a fundamental infrastructure challenge, placing an unprecedented and non-negotiable power demand | Photo: Getty
NTT’s 2025 sustainability report reveals how the AI revolution’s 13x power surge is forcing telcos to make sustainable data centres the core

For telecom operators, the rise of Gen AI presents not just a technological milestone but a serious infrastructural challenge.

The rising tide of power demand on data centre networks is transforming sustainability from a corporate aspiration into a business-critical requirement for the industry.

The new NTT Global Data Centres 2025 Sustainability Report frames this as a collision between two imperatives: the growing economic value of data and its escalating environmental cost.

NTT GDC CEO Doug Adams notes that while “data is central to our digital age”, its environmental impact “could increase dramatically with the rapid rise of Gen AI”.

With industry projections suggesting AI-driven power consumption could surge 13-fold by 2030, the report positions sustainable infrastructure as the only viable path forward.

Doug frames it as a direct “commitment to ensuring the AI revolution is a sustainable one".

Doug Adams, CEO at NTT GDC

Sustainability becomes the new benchmark

The definition of what constitutes a leading data centre partner is also beginning to shift.

In a period marked by grid strain and tighter regulation, being the “premier” provider no longer means having the fastest connection or lowest latency – it now hinges on securing dependable energy, maintaining uptime for AI-intensive workloads and managing carbon responsibility.

As Doug puts it, NTT GDC strives to be “the world’s premier data centre provider in a digitally connected world that is both harmonious and sustainable".

This redefines sustainability as the new standard for reliability and commercial viability.

The report also outlines science-based goals, including achieving net zero emissions across the value chain by 2040 – 10 years ahead of the Paris Agreement’s timeline.

Industry projections suggesting AI-driven power consumption could surge 13-fold by 2030 | Photo: NTT

A three-pillar plan for decarbonisation

NTT GDC structures its approach around a simple three-part framework: “Consume less. Do better. Do different.”

This vision translates into a clear operational strategy for telecom and infrastructure players to reduce risk, manage costs and invest in future-proof technologies.

NTT GDC’s three-pillar operational framework
  • Consume Less: This pillar emphasises operational excellence as a means of capacity creation. The report highlights 21 GWh saved in FY24 through efficiency measures alone. In a power-constrained market, this “found” 21 GWh represents virtual capacity that can be sold to new high-density clients without needing new utility grid connections.
  • Do Better: This represents a strategic switch to cleaner alternatives, primarily through a massive renewable energy procurement plan. The strategy moves beyond simply buying unbundled certificates. As Neal Kalita, Global Energy Management at NTT Global Data Centers, states: “Our ambitious PPA strategy is not just about powering our data centres; it’s about powering change in the energy landscape. By securing large-scale agreements, we’re driving the creation of new renewable energy sources.” By investing in “additionality”—new power plants—NTT GDC works to create long-term price certainty and enhance the resilience of the local grids where it operates.
  • Do Different: This innovation pillar is NTT’s answer to the high-density AI challenge. It includes developing net-zero data centre designs, deploying direct liquid cooling technologies and pioneering external waste heat recovery.

Turning theory into real-world impact

These strategies are already proving viable. In Navi Mumbai, India, an advanced liquid-cooled facility now supports AI workloads exceeding “20 kW per rack” and achieves nearly “30%” energy efficiency improvement over traditional air-cooled centres.

This trend is redefining the relationship between computing density and efficiency – higher power, when managed intelligently, can drive better environmental performance.

In Berlin, another NTT project captures excess heat from data centres for local district heating.

The initiative transforms what was once waste into a community resource, exemplifying the company’s goal of turning data centres from energy consumers into sustainability assets.

This approach also acts as a safeguard against rising public and regulatory opposition to data centre expansion globally.

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The next sustainability test

Even with such advances, the report flags emerging risks. A 29% rise in water use, driven by evaporative cooling at high-load sites, highlights the pressing “Water-Power Nexus” dilemma – balancing power efficiency with responsible resource use.

Scope 3 emissions remain another sticking point, particularly client-related IT loads that weigh down NTT’s overall renewable energy percentage.

For telecom operators, NTT’s analysis serves less as a warning and more as a blueprint: the AI era will depend on data centre infrastructure that has solved energy, cooling, and community integration sustainably.

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Executives

  • Doug Adams

    CEO & President, NTT Global Data Centers