NTT Data Group, a Japanese data center operator, has agreed to purchase carbon removal credits from Climeworks, the two companies announced Thursday. The deal is the first between a major AI infrastructure firm and a provider of direct air capture technology, per Axios.
Surging electricity demand from artificial intelligence is drawing increased scrutiny to data centers' carbon footprints. This partnership could signal a broader trend as AI companies seek ways to offset their growing emissions, though the scale remains modest relative to the problem.
Climeworks co-CEO Christoph Gebald said the agreement could cover a few hundred thousand tons of carbon removal over a decade. The companies declined to disclose financial terms. For the nascent direct air capture industry, the volume is meaningful but represents a fraction of emissions tied to AI expansion.
The deal's significance lies less in its immediate impact and more in what it foreshadows. Gebald noted the company has seen increased interest from data center operators. If other major players follow, it could provide a crucial revenue stream for a technology that has faced commercial setbacks.
A counter_argument holds that carbon removal credits risk becoming a distraction. Critics argue they allow tech firms to avoid making deeper operational cuts at a time when the emissions trajectory demands far more aggressive reductions.