NTT DATA Partners With Climeworks for Carbon Removal

NTT DATA partners with Climeworks to integrate carbon removal into its Net Zero plans, becoming the first Japan-based IT services provider to do so

NTT DATA has entered a partnership with Climeworks, a Swiss direct air capture company. According to the announcement, this makes NTT DATA the first Japan-based IT services provider to incorporate carbon dioxide removal into its net zero strategy.

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The company announced the deal at the World Business Council for Sustainable Development meeting in Geneva. The partnership comes as tech companies face pressure to manage carbon emissions while expanding data centre infrastructure to meet AI demand.

Moving beyond carbon measurement

David Costa, Chief Sustainability Officer at NTT DATA, says clients now expect sustainability strategies built on measurable data. He says the company uses its decarbonisation work to inform client services including sustainable IT and value chain transformation.

"Clients are asking for sustainability strategies that are measurable, operational and grounded in real data," David says.

"Our role is to help them move from ambition to action: from carbon measurement and reporting readiness to reduction pathways across operations, technology and value chains. That same discipline guides our own approach: reduce first, be transparent about progress and limitations, and use carbon removal where it is appropriately justified for residual emissions."

The partnership could signal a shift in how mid-sized technology companies approach residual emissions. Carbon removal solutions have typically been adopted by larger enterprises with established decarbonisation programmes.

Carbon removal in digital infrastructure

Christoph Gebald, co-CEO and co-founder of Climeworks, says carbon removal has become necessary for companies scaling AI infrastructure. He says the energy requirements of data centres and AI systems have drawn attention from ESG investors.

"As artificial intelligence scales and data centre construction expands, companies need clear, credible ways to manage their carbon footprint," says Christoph.

"By providing access to hundreds of kilotons of carbon removal over the next decade, Climeworks is demonstrating that carbon removal is becoming a critical part of the AI economy."

According to Climeworks, the partnership will provide carbon removal capacity measured in hundreds of kilotons over 10 years. The company uses direct air capture technology to remove carbon dioxide from the atmosphere.

Addressing residual operational emissions

Yutaka Sasaki, President and CEO of NTT DATA Group Corporation, says the partnership addresses emissions that cannot be eliminated through reduction measures alone. He describes carbon dioxide removal as a complement to mitigation efforts rather than a replacement.

"NTT DATA is continuously reducing our carbon emissions, and we extend our overall expertise and experience to help clients along their own journeys to truly sustainable operations," says Yutaka.

"Our agreement with Climeworks complements these efforts by applying high-quality CDR credits toward our own residual emissions, and we believe our support will help expand the effectiveness and reach of CDR technology overall."

The company continues to focus on direct emissions reductions across its operations. The Climeworks partnership addresses what NTT DATA describes as hard-to-abate emissions within its value chain.

NTT DATA confirmed its decarbonisation timeline at the Geneva summit. The company plans to reach Net Zero for Scope 1 and 2 emissions from global data centres by 2030. Office operations will reach Net Zero for Scope 1 and 2 emissions by 2035. The company aims to achieve full Scope 3 Net Zero by 2040.

According to NTT DATA, 56% of electricity used across global operations came from renewable sources in fiscal year 2024. This represents an increase from 49% in the previous fiscal year.