Industry Groups Form Coalition to Tackle Data Center Energy and Water Impact

WASHINGTON — A group of leading building, sustainability, and finance organizations has launched the Greening AI Data Centers Coalition (GADCC), a global initiative aimed at defining clear standards for sustainable data center development as demand for AI-driven infrastructure continues to grow.

The coalition will focus on establishing transparent benchmarks to help developers, investors, and policymakers identify data centers that reduce environmental impact while maintaining reliable performance.

Industry Alignment Aims to Eliminate Greenwashing in Data Center Design

The GADCC brings together organizations across building certification, sustainability benchmarking, and green finance to create a unified definition of what qualifies as a “green” data center.

Founding members include the Building Research Establishment (BRE), Climate Bonds Initiative, German Sustainable Building Council (DGNB), Global Real Estate Sustainability Benchmark (GRESB), Green Building Council of Australia (GBCA), Green Building Council South Africa (GBCSA), Indian Green Building Council (IGBC), U.S. Green Building Council (USGBC), and World Green Building Council (WorldGBC).

By aligning standards across these groups, the coalition aims to reduce confusion in the market and ensure sustainability claims are backed by measurable performance.

“We are proud to be a founding member of this coalition to accelerate sustainable design and operations in data centers worldwide," 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.”

Rising Energy and Water Demands Drive Need for Clear Standards

The rapid expansion of AI infrastructure is placing increasing pressure on power grids and water resources, particularly in urban areas where many data centers are located.

Data centers currently account for an estimated 1.5–2% of global electricity consumption, with demand expected to more than double by 2030. At the same time, water use is rising, with some facilities consuming volumes comparable to small cities.

These factors are driving concerns around energy availability, operating costs, and long-term sustainability—especially as demand for AI computing continues to accelerate.

Standardized Criteria Will Guide Design and System Performance

A key focus of the coalition is developing a consistent framework for evaluating data center performance across multiple categories, including energy use, carbon emissions, water consumption, waste management, biodiversity, and community impact.

For contractors and engineers involved in mechanical systems, cooling, and water management, these standards could influence system design requirements, equipment selection, and overall project specifications.

Financing Frameworks Expected to Support Sustainable Projects

In addition to technical criteria, the GADCC will support the development of financing tools aligned with its standards, including green bonds and sustainability-linked loans.

These mechanisms are intended to direct investment toward projects that meet defined environmental and performance benchmarks, helping accelerate adoption of more efficient and sustainable infrastructure.

Growing AI Demand Increases Pressure on Infrastructure Design

As AI adoption expands, the need for high-performance data centers will continue to grow—making efficient system design and resource management critical.

The coalition’s work is intended to provide clearer guidance for balancing performance, energy use, and environmental impact, while helping stakeholders deliver projects that meet both operational and sustainability goals.