The rapid expansion of datacenter infrastructure, driven in part by the growing demand for artificial intelligence, is drawing increasing attention to the carbon footprint of construction materials. While many operators are transitioning to renewable electricity, embodied carbon is becoming a larger share of overall emissions.
According to Stegra, data centers account for approximately 3% of global greenhouse gas emissions, with steel accounting for an estimated 20–30% of embodied carbon emissions in many facilities.
The company is developing steel with up to 95% lower CO₂ emissions compared with conventional steelmaking processes. Stegra says that using near-zero-emission steel in structural components, server racks, cable management systems, and supporting infrastructure could reduce steel emissions by up to 80% without requiring significant design changes.
As AI-related infrastructure expands, developers are placing greater focus on lifecycle emissions and Scope 3 reporting requirements. Material selection is becoming an increasingly important part of datacenter decarbonization strategies, with low-emission steel presenting an opportunity to reduce embodied carbon across the value chain.
Why it matters for green steel: Embodied carbon is becoming a growing concern for datacenter developers as sustainability requirements and emissions reporting standards evolve. Since steel accounts for a significant share of construction-related emissions, adopting near-zero-emission steel could play an important role in reducing the overall carbon footprint of future data center projects. The trend also highlights a potential new growth market for green steel producers as demand for low-carbon construction materials expands alongside investments in digital infrastructure.