NTT Data Partners with Climeworks for Carbon Removal Credits Amid AI-Driven Data Center Boom

NTT Data, a major global data center operator, has entered into an exclusive agreement with Swiss carbon removal startup Climeworks to purchase carbon removal credits, the companies announced on Thursday.

The deal marks the first agreement between Climeworks and a major AI infrastructure company, reflecting the increasing pressure on data centers to address emissions amid surging energy demand from AI technologies.

Why This Deal Matters

AI-driven data centers are facing heightened scrutiny over their environmental impact, pushing companies like NTT Data to explore carbon removal solutions. The agreement could also signal a broader trend within the AI industry, as firms seek ways to offset emissions that are difficult to eliminate through efficiency alone.

Key Details of the Agreement

• Parties Involved: NTT Data Group (Japan-based) and Climeworks (Switzerland-based).
• Scope of Deal: The financial terms are undisclosed, but Climeworks co-CEO Christoph Gebald stated the agreement could provide a few hundred thousand tons of carbon removal over a decade.
• Technology Used: Climeworks employs large fans and filters to capture CO₂ from ambient air, a process known as Direct Air Capture (DAC).
• Credit Types: The deal includes both engineered carbon removal (DAC) and nature-based credits, which are often more cost-effective but may raise durability concerns.

Industry Context and Challenges

The carbon removal sector remains in its early stages, with the NTT Data-Climeworks deal representing a meaningful but modest step toward addressing emissions from AI infrastructure. The agreement’s scale pales in comparison to the total emissions generated by the AI boom, underscoring the need for far greater reductions to mitigate climate change.

According to Giana Amador, founding executive director of the Carbon Removal Alliance, the partnership highlights a growing interest in carbon removal as a viable offset strategy for data centers. “Carbon removal is quite attractive because the technology doesn’t have to be built alongside a data center project,” Amador noted. “They can purchase it as an offset.”

NTT Data’s Climate Commitments

NTT Data, which employs roughly 200,000 people worldwide, has set ambitious climate goals, including achieving net-zero emissions from its data centers by 2030. The Climeworks deal will help the company offset additional emissions by 2040.

“Clients are asking for sustainability strategies that are measurable, operational, and grounded in real data,” said David Costa, chief sustainability officer at NTT Data, in a statement.

Broader Industry Trends and Gaps

The carbon removal market has faced setbacks, including a pause in new credit purchases by Microsoft, one of its largest voluntary buyers. Industry sources, speaking on condition of anonymity, confirmed that no major companies have yet stepped in to fill the void left by Microsoft’s decision.

As the AI industry continues to expand, the demand for scalable carbon removal solutions is expected to grow, though the sector remains challenged by high costs, scalability issues, and questions about the durability of certain credit types.