GDS is on track to achieve carbon neutrality by 2030

GDS, a leading high-performance data center solution provider in China and South East Asia, saw 30 of its data centers completely shift to renewable energy usage by the end of 2022, fulfilling a bold commitment to achieving net carbon emission by the end of this decade.

“Environmental, Social and Governance (ESG) initiatives are a priority to us as well as for our customers, which explains why we are a forerunner among our peers,” says William Huang, chairman and chief executive officer. “These positive changes are the fruits of the execution of a comprehensive strategy designed to tackle the challenges and seize the opportunities in GDS’s data center operations.”

To integrate environmental sustainability fully into GDS’s operational and supply chain processes, Huang points out that the company takes environmental benefits into account in its project design and vendor selection. It insists on reducing its carbon footprint by increasing the proportion of renewable energy usage; making its data centers greener; and reducing resource consumption by optimizing its operational efficiency.

According to GDS’s ESG Report 2022, the company consumed 1,811 GWh of green power last year, a rise from 1,452 GWh in 2021, thereby increasing the proportion of renewable resource usage to 35.9 percent in 2022. Eighteen more data centers were using directly sourced renewable energy last year.

The strategy worked as 1.03 million metric tons of absolute carbon emission were reduced last year, and the carbon emission intensity was lowered by about 4 percent yearly to 5.4 tons of carbon dioxide equivalent per square meter (tCO2 e/m2) in 2022.

Furthermore, GDS received nine LEED Gold Awards bestowed by the Green Building Certification Institute in 2022, serving as a testament to the company’s commitment to attaining its net carbon emission goals. Also, 77 percent of data centers, which were developed by GDS and have been in operation since 2020, have obtained or are seeking green building certification.

Huang cites the shining example of GDS Shanghai Pujiang Data Center which has adopted an advanced environmentally-friendly design and prefabricated construction method “Smart DC” involving IT, power distribution, cooling and diesel generators, plus high-efficiency and energy-saving systems for daily operations.

For the existing data centers, Huang explains that GDS is shifting gradually from diesel generators to hydrotreated vegetable oil (HVO) or hydrogen fuel cells to ensure the stability of the power supply.

As public companies in Hong Kong will be required to reveal climate-related information in their ESG reports, GDS is at the forefront in providing climate-related risks and opportunities in line with the Task Force on Climate-Related Financial Disclosure (TCFD) framework.

Meanwhile, GDS continues creating value for all its stakeholders. The measures, Huang elaborates, include offering comprehensive employee training programs that equip the workforce with advanced skills, leading to sustained growth and development; and mobilizing suppliers to embrace ESG and Environmental Health and Safety (EHS) initiatives.

Last year, GDS received a record-high customer satisfaction rating of 9.619 out of 10, rising from 9.585 in 2021. The proportion of females at senior levels has also expanded to 37 percent, Huang notes.

In terms of governance, GDS believes strict corporate management practices will enhance stakeholder confidence. Therefore, the company conducts regular reviews of its policies and procedures, and maintains transparent communication with shareholders, customers, employees, and the wider community.

The participation of full-time employees in compliance and anti-corruption training and cybersecurity training remained at 100 percent from the first half of 2021 to 2022.

Looking ahead, Huang emphasizes that GDS will adhere to its goal of achieving net-zero carbon emissions by 2030, including using only green power and having all the self-developed data centers in service after 2020 eligible for green building certification, in addition to continued improvements in social and governance aspects of its operation.

Huang stresses that this bold commitment results from careful consideration, and is supported by realistic and feasible strategies. “At GDS, we are committed to connecting a smart infrastructure platform to a sustainable future,” Huang concludes. “Despite the challenges in engaging more stakeholders in green operations, it is worthwhile to invest time and effort to raise public awareness about the importance of sustainability.”