How GCC Data Centers Track Carbon Emissions

Q: How are GCC data centres using renewable energy to lower their carbon emissions?

Data centres across the GCC are increasingly turning to renewable energy sources like solar, wind, and nuclear power in an effort to minimise their environmental footprint. A standout example is the UAE's Moro Hub, which operates a solar-powered facility - an impressive step that reflects the region's dedication to sustainable practices. In addition, some GCC governments are considering policies that would require data centres to rely entirely on renewable energy by 2027. To align with these ambitions, many providers are exploring options like onsite renewable energy generation and power purchase agreements (PPAs) . Although the pace of progress differs from one country to another, these initiatives underscore the growing importance of sustainability in the data centre sector.

GCC data centers are adopting innovative technologies and metrics to effectively track and reduce carbon emissions as they strive for sustainability.

GCC data centers are racing to reduce their carbon footprint. With electricity consumption expected to double by 2030 and cooling systems accounting for 40% of energy use, tracking and cutting emissions is now a business necessity. Here’s how they’re tackling the challenge:

Carbon Emission Metrics: Tools like Power Usage Effectiveness (PUE) and Carbon Usage Effectiveness (CUE) measure energy efficiency and emissions per unit of IT power.
Regulations: The UAE and Saudi Arabia lead with ambitious net-zero targets (UAE: 2050, Saudi Arabia: 2060), backed by mandatory Measurement, Reporting, and Verification (MRV) systems.
Technologies: AI-driven platforms, liquid cooling systems, and renewable energy sources like solar power are transforming operations.
Challenges: Data gaps, inconsistent standards, and the infancy of carbon markets make tracking difficult.
Regional Progress: Investments in renewable energy and sustainability initiatives, like the UAE’s AED 587 billion commitment, are driving change.

What’s next? GCC data centers must act swiftly to align with Net Zero 2050 goals by halving emissions by 2030. Advanced tools, strong regulations, and collaboration are key to leading the global shift towards greener operations.

Key Metrics and Standards for Emission Monitoring

In the GCC region, data centres need well-defined metrics to pinpoint inefficiencies, meet regulatory requirements, and monitor their environmental impact. These metrics are essential for gauging operational performance and ensuring compliance.

Greenhouse Gas (GHG) Metrics and Indicators

To assess the environmental impact of data centres, several critical metrics come into play. One of the most important is CO₂-equivalent emissions, which combine all greenhouse gases into a single figure that reflects their overall contribution to climate change.

Power Usage Effectiveness (PUE) is a widely recognised measure of energy efficiency. A PUE score of 1.0 means that 100% of the energy consumed by the data centre is used directly for computing purposes.

Another key metric, Carbon Usage Effectiveness (CUE), calculates the carbon dioxide emissions generated per unit of IT energy consumption. By adopting energy-efficient hardware, switching to renewable energy, and improving cooling systems, data centres can lower their CUE.

Energy Use Intensity (EUI) measures the energy consumed relative to computing output, offering insights into operational efficiency.

The carbon footprint of a data centre is largely influenced by three factors: electricity usage, water consumption for cooling, and the emissions embedded in the manufacturing of equipment. Electricity typically accounts for the largest share, but water usage and equipment lifecycles also contribute significantly. Hyperscale and co-located data centres often achieve greater efficiency compared to internal facilities. For example, computing workloads in hyperscale data centres are nearly six times more water-efficient than those in internal ones.

Global and Regional Standards

The metrics mentioned above form the backbone of global and regional standards for emission monitoring. While the GCC is aligning with international frameworks, it is also developing localised standards to address regional needs. Abu Dhabi, for instance, has introduced an international-standard Measurement, Reporting, and Verification (MRV) programme to streamline greenhouse gas emissions reporting across its industrial and energy sectors. This initiative aligns with global best practices, including the United Nations Framework Convention on Climate Change and the Enhanced Transparency Framework under the Paris Agreement.

Her Excellency Dr Shaikha Al Dhaheri, Secretary General of EAD, highlights the importance of these efforts:

"Abu Dhabi has fortified its position as a forward-thinking leader on climate action, through working closely with our government, industrial and energy sector partners, as we are integrating new mandatory Measurement, Reporting and Verification efforts into our broader carbon accounting framework. This framework supports strategic carbon reductions under national targets. Through this journey, we are very keen to proactively take the necessary steps as part of the national pathways towards Net Zero by 2050."

The MRV programme will require large carbon-emitting facilities to monitor, report, and verify their emissions annually, with the first reports expected in 2026.

His Excellency Eng. Ahmed Mohammed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, adds:

"Measurement, Reporting, and Verification (MRV) systems are crucial for providing accurate data to track carbon emissions, ensure transparency, build trust, and drive effective climate action."

Saudi Arabia has also made strides in this area, launching its Circular Carbon Economy Framework during its G20 presidency in 2020. Similarly, the UAE's Circular Economy Agenda 2031 outlines 22 policies spanning four key sectors. Together, these initiatives set the stage for robust emission monitoring practices.

The GCC's focus on emission standards is yielding tangible results. The region outperformed the global average in the 2024 Carbon Circular Economy Index with a score of 41.5 points. Additionally, the contribution of renewable energy capacity in GCC countries grew from 0.03% in 2015 to 0.43% in 2024.

As global policies tighten, GCC data centres are under growing pressure to adopt precise methods for measuring, reporting, and reducing their carbon footprints. This often begins with a thorough audit of current operations, focusing on energy and water use, energy sources, carbon emissions, and existing monitoring systems.

Some major players are already leading the way. Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium (EGA), explains:

"The GHG MRV solution will help EGA to meet evolving regulatory requirements while maintaining transparency and auditability of our emissions data throughout the value chain of our production processes. This tool is an important step in achieving our bold aspiration of embedding sustainability in everything we do and reaching net zero greenhouse gas emissions by 2050."

The move towards product-level carbon accounting offers several advantages. It enables data centres to achieve tailored emissions reductions, improve compliance, enhance transparency, and adapt more effectively to policy changes. Operators can identify specific services or customers driving higher emissions and implement targeted strategies to address these areas.

Step-by-Step Process for Carbon Emission Tracking

The process of tracking carbon emissions in GCC data centres unfolds in three key phases, each designed to build a thorough and effective emissions management system.

Baseline Assessment and Data Collection

The journey begins with a detailed audit of current operations. This involves measuring energy consumption and evaluating equipment performance, including server loads, cooling systems, and backup infrastructure. These metrics establish baseline figures for Power Usage Effectiveness (PUE), Carbon Usage Effectiveness (CUE), and Energy Usage Intensity (EUI). Cooling systems, which can account for nearly 40% of a data centre's energy use, are a primary focus for measurement.

It's also important to document standard operating procedures, maintenance routines, and peak usage patterns to account for seasonal variations in energy demand.

Location planning plays a vital role in shaping these baseline metrics. Many data centres in the region are strategically positioned near natural cooling resources - like seawater, cold air, or caves - to minimise reliance on energy-intensive cooling systems. This aligns with regional sustainability goals for data centre operations.

Once the baseline is established, the focus shifts to continuous monitoring, allowing operators to quickly identify and address inefficiencies.

Real-Time Monitoring and Analytics

After setting a baseline, data centres adopt continuous monitoring systems to track emissions and address issues as they arise.

Automated monitoring platforms consolidate data on carbon emissions and water usage, creating a centralised hub for sustainability metrics. These platforms use advanced analytics to offer insights that support better sustainability forecasting, modelling, and decision-making. By comparing current data against historical trends, operators can detect signs of equipment wear or operational inefficiencies.

Alert systems are another essential component, with control limits that trigger immediate notifications when anomalies occur.

In 2024, GHGSat launched a satellite specifically designed to monitor CO₂ and methane emissions from industrial sites and power plants across Dubai. This high-resolution data enables operators to pinpoint emission sources and take corrective actions swiftly.

The integration of data centres with smart city systems is gaining traction across the GCC, paving the way for more effective greenhouse gas reduction strategies. This step also aligns with regional mandates for sustainable operations.

Validation, Verification, and Reporting

The final phase ensures accuracy through rigorous validation and third-party verification. Independent organisations cross-check automated data with manual measurements to ensure compliance with international standards like ISO 14068-1. Globally, over 40 nations require facilities to regularly measure and report emissions through validated processes. The GCC is rapidly adopting these practices, with initiatives like the UAE's MRV programme setting the stage for standardised reporting.

Anjana Sharma, Head of Sustainability for India at DNV, highlights the growing importance of accountability:

"More and more businesses are recognizing climate change as a serious societal problem, and that to take part in the solution they need to showcase strong efforts around decarbonization and sustainability as a whole".

Verification not only confirms the effectiveness of emissions reduction measures but also promotes ongoing improvement through regular reporting.

Documentation requirements vary by jurisdiction but generally follow international guidelines. For example, Qatar’s National Climate Change Plan, approved in 2021, provides a framework for climate-conscious decision-making across sectors. The establishment of Qatar's Ministry of Environment and Climate Change that same year underscores the nation’s commitment to addressing climate challenges.

This structured approach highlights the importance of precise tracking and a commitment to continuous improvement in emissions management.

Tools and Technologies Used in GCC Data Centres

Data centres in the GCC region are stepping up their game with cutting-edge technologies to monitor and reduce carbon emissions. With global data centre energy consumption projected to surpass 1,000 TWh by 2026, the sector is turning to innovative solutions in software, hardware, and energy management to tackle this challenge.

Software Platforms and Hardware Solutions

AI-driven platforms are at the forefront, combining real-time monitoring with predictive analytics to optimise energy use and cut down carbon emissions. These systems not only track power consumption patterns but also provide precise metrics for managing carbon footprints effectively.

On the hardware side, modular power systems offer scalable solutions that adapt to growing capacity needs, while liquid cooling technology is becoming the go-to choice for new data centres. This method is particularly effective in managing the high power density required for AI workloads, using significantly less energy than traditional air cooling systems .

Additionally, advanced monitoring dashboards give operators a bird’s-eye view of their emissions. These platforms track critical metrics like Power Usage Effectiveness (PUE), Carbon Usage Effectiveness (CUE), and Energy Usage Intensity (EUI) in real time, enabling more informed decisions.

Renewable Energy Integration

The GCC is leveraging its natural advantage in renewable energy to reshape data centre operations. Solar power leads the charge, with electricity costs in Saudi Arabia and the UAE ranging from AED 0.18 to AED 0.22 per kWh - far below the US average of AED 0.33 to AED 0.55 per kWh. Abu Dhabi’s Al Dhafra Solar Project stands out, offering tariffs as low as AED 0.05 per kWh.

In 2023, Huawei and DEWA launched the largest solar-powered data centre in the MEA region, showcasing the potential of large-scale renewable energy integration. Similar collaborations, such as those between Moro Hub and Huawei or MIS and Abunayyan Holding Group, are paving the way for green data centres in Saudi Arabia.

Hybrid energy systems, which combine solar, wind, and traditional sources, are also gaining traction. These setups provide reliable power while maximising the use of clean energy. The UAE’s commitment of over AED 587 billion to renewable energy projects further supports this transition.

Meanwhile, nuclear power, particularly small modular reactors (SMRs), is emerging as a reliable and clean energy source. SMRs offer consistent power without the intermittency challenges associated with solar and wind energy .

"With policies, projects, and partnerships aligned, the GCC's renewable energy sector is no longer emerging - it's exploding."
– Kunal R. Nagpure, Market Research Consultant, BCC Research

Regional Providers and Their Approaches

Saudi Arabia is leading the charge in the GCC data centre market, accounting for nearly 75% of total power capacity and an additional 500 MW expected by 2025. Operators in the country are increasingly adopting renewable energy and advanced cooling systems to lower emissions.

Across the region, providers are taking different paths to reduce their carbon footprint. Some are investing in integrated software platforms that work seamlessly with existing systems, while others focus on upgrading hardware and securing renewable energy sources. The GCC’s data centre capacity currently exceeds 650 MW, with future capacity expected to reach around 3 GW.

However, challenges remain. Power infrastructure bottlenecks and delays in building transmission lines are slowing down development. To counter this, many operators are turning to on-site renewable energy generation and storage solutions.

The GCC benefits from less restrictive planning regulations compared to Europe, enabling lower costs and faster approvals for renewable energy projects. This regulatory advantage is accelerating the adoption of emission tracking and reduction technologies.

By 2027, the region is projected to attract AED 29 billion in investments for new data centres, with a significant portion earmarked for sustainability initiatives and renewable energy integration. These investments are not only driving the adoption of advanced tools but also creating opportunities for technology providers to establish partnerships within the region.

Thanks to its strategic location - connecting key global subsea cable routes between Asia, Europe, and Africa - the GCC is emerging as a vital hub for AI and digital transformation. This geographical advantage, combined with technological advancements, positions the region as a leader in next-generation data centre operations . The next step is to address the operational challenges that come with these advancements.

Best Practices and Challenges in Carbon Emission Reporting

Data Centre Best Practices for Reducing Emissions

Cutting carbon emissions in data centres starts with tackling one of the biggest energy consumers: cooling systems. In the GCC, where data centre capacity is set to exceed 700 MW within two years, finding smarter cooling solutions is a top priority.

One effective approach is using hot and cold aisle containment, which prevents air from mixing and reduces the cooling load. Pairing this with precision air conditioning units, economisers, and advanced monitoring systems can significantly boost efficiency. These systems can spot inefficiencies in real time, making it easier to optimise energy use.

A great example of this is the NREL data centre, which implemented energy-efficient cooling and other measures. The result? A 50% reduction in energy use and an 80% cut in water consumption. Such strategies can also slash energy costs by as much as 40%.

Heat recovery systems are another smart move. Instead of letting waste heat go unused, it can be repurposed for things like hot water services. This not only cuts emissions but also adds value by putting that energy to good use.

"Optimising cooling energy consumption is a critical component of this effort and adopting energy-efficient cooling technologies and practices, data centres can significantly reduce their carbon footprint." - Core Group

Water conservation is especially crucial in the GCC's arid climate. Water-efficient cooling systems reduce the energy needed for water treatment and pumping. When combined with energy-efficient building materials - like reflective roofing and proper insulation - these measures create a well-rounded strategy for cutting emissions.

While these practices offer promising results, they also bring challenges, particularly in tracking and reporting emissions effectively.

Common Challenges in Emission Tracking

One major hurdle for GCC data centres is the lack of comprehensive data for tracking emissions. Many companies either don’t have the tools for detailed monitoring or hesitate to disclose their emissions due to concerns about possible regulatory consequences.

The region's carbon markets are still in their infancy, adding another layer of complexity. Issues like limited emissions data and a lack of institutional capacity for verification create uncertainty around how emissions should be measured and reported.

Global reporting standards also don’t always align neatly with the GCC’s unique conditions, such as its climate, energy mix, and regulatory systems. Adapting these frameworks to local realities remains a challenge.

These obstacles - insufficient data, inconsistent standards, and limited institutional expertise - make accurate emission tracking across the GCC a difficult task and highlight the need for more regional expertise.

Regional Initiatives and Future Outlook in Emission Reporting

To tackle these challenges, the region is beginning to roll out initiatives aimed at improving and standardising emission reporting. For instance, the UAE Carbon Alliance has committed AED 1.65 billion to purchasing African carbon credits by 2030. This kind of initiative not only builds momentum in the market but also helps establish consistent reporting practices.

Saudi Arabia is also making strides with its Regional Voluntary Carbon Market Company, which facilitates the voluntary trading of carbon credits and helps set regional benchmarks. Similarly, Bahrain’s Safa platform, launched by Mumtalakat in November 2023, provides an easy-to-use tool for offsetting emissions in hard-to-decarbonise sectors like shipping and logistics.

Developing local expertise is critical to these efforts. Regional training programmes and knowledge-sharing platforms can play a big role. With the UAE aiming for a 40% reduction in emissions by 2030 and Saudi Arabia targeting 50% renewable energy in its mix by the same year, having robust monitoring systems in place is increasingly important.

Investing early in tracking systems doesn’t just help meet regulatory requirements - it also gives data centres a competitive edge. With global data centres projected to consume over 1,000 TWh of electricity by 2026, the need for accurate and transparent emission reporting is only going to grow.

Conclusion

Data centres in the GCC are now using carbon tracking as a strategic tool. With these facilities expected to consume around 1.5% of global electricity in 2024 and the region's capacity projected to surpass 700 MW within two years, tracking emissions effectively has become a necessity.

Addressing these challenges requires a mix of advanced technology, strong regulatory frameworks, and collaborative efforts. Companies that adopt advanced tools to refine emissions reporting can not only enhance their operational efficiency but also boost investor trust and gain a competitive edge in the market.

Regional partnerships are already yielding notable progress. Between November 2024 and March 2025, environmental investments in the GCC reached a record AED 213 billion, with 38% allocated to regional or multicountry initiatives. One standout example is the Gulf Blue Carbon Network, launched by Qatar and the UAE in December 2024, which has committed over AED 1.1 billion to mangrove restoration projects. These efforts underline the urgency for immediate operational shifts in the sector.

For data centre operators, the priorities are clear. The implementation of mandatory Measurement, Reporting, and Verification (MRV) systems is essential for transparency and for building trust with stakeholders. Abu Dhabi's pledge to cut carbon emissions by 22% by 2027 is a clear indication of the regulatory momentum gaining traction across the region.

"Measurement, Reporting, and Verification (MRV) systems are crucial for providing accurate data to track carbon emissions, ensure transparency, build trust, and drive effective climate action"
– His Excellency Eng. Ahmed Mohammed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy

Sustainability is also being embedded directly into contracts through green clauses, which are reshaping development and financing practices in the sector.

Technological advancements, such as improved thermal management and liquid cooling systems, offer significant efficiency gains. These solutions can reduce power usage by up to 30%, a crucial step given that cooling accounts for 40% of total energy consumption in data centres. The dual benefit of these innovations - lower environmental impact and cost savings - cannot be overstated.

With electricity consumption by data centres expected to double by 2030, and emissions needing to be halved to align with Net Zero 2050 goals, the need for urgent action is clear. Stakeholders and investors are increasingly scrutinising sustainability efforts, making it imperative for operators to act swiftly.

The GCC has the resources, expertise, and drive to set a global example in sustainable data centre operations. Success will hinge on adopting comprehensive carbon tracking systems, strengthening regional collaboration, and integrating carbon management into core business strategies. By connecting innovation with regional partnerships, the region is well-positioned to lead the transformation toward a sustainable future.

FAQs

How do data centres in the GCC monitor and report their carbon emissions to meet global standards?

How GCC Data Centres Monitor Carbon Emissions

Data centres in the GCC region are actively working to track and report carbon emissions by adhering to globally recognised frameworks like the GCCA Sustainability Guidelines and the GCC 2.0 Project Sustainability Standard. These frameworks emphasise monitoring energy usage, CO₂ emissions, and establishing reliable Measurement, Reporting, and Verification (MRV) systems to ensure precise and transparent reporting.

Operators in the region utilise advanced tools and techniques for emission tracking. This includes real-time energy monitoring and engaging third-party verification services to validate their data. For example, initiatives in Abu Dhabi align with international MRV protocols, which not only enhance credibility but also support broader environmental goals. By following these practices, GCC data centres are playing a role in global efforts to minimise carbon footprints, all while maintaining high operational standards.

What challenges do GCC data centres face in tracking and managing carbon emissions effectively?

Challenges for GCC Data Centres in Managing Carbon Emissions

Data centres in the GCC region face some tough hurdles when it comes to tracking and managing carbon emissions. The harsh climate and the region's rapid digital expansion play a significant role in these challenges. With high temperatures and limited water resources, cooling systems often struggle to operate efficiently. This leads to higher energy consumption, making sustainability efforts even more complex. And let’s not forget the reliance on diesel generators for backup power, which further complicates emission monitoring.

Adding to the difficulty is the breakneck pace of digital infrastructure growth. While advanced tools like AI and data analytics could make carbon tracking more accurate, their adoption across the industry remains limited. Some providers are moving forward with sustainability initiatives, but the lack of widespread use of these technologies slows down progress in achieving reliable and transparent emission reporting.

How are GCC data centres using renewable energy to lower their carbon emissions?

Data centres across the GCC are increasingly turning to renewable energy sources like solar, wind, and nuclear power in an effort to minimise their environmental footprint. A standout example is the UAE's Moro Hub, which operates a solar-powered facility - an impressive step that reflects the region's dedication to sustainable practices.

In addition, some GCC governments are considering policies that would require data centres to rely entirely on renewable energy by 2027. To align with these ambitions, many providers are exploring options like onsite renewable energy generation and power purchase agreements (PPAs). Although the pace of progress differs from one country to another, these initiatives underscore the growing importance of sustainability in the data centre sector.