Why Hyperscalers Care About Your Supply Chain Carbon
Hyperscalers are racing to add data centers, and the fastest way for them to cut emissions is not their office lights, it is your factory gates. Their Scope 3 footprints dwarf everything else, so they are pushing carbon rules straight into supplier contracts. If you make concrete, steel, insulation, panels, coatings, cabling or HVAC, this shift will land on your desk long before a tender goes out.
The math that makes this your problem
Big tech’s emissions are dominated by their supply chains. Microsoft reports a 30.9 percent jump in Scope 3 and calls out data center construction materials and hardware as prime drivers (Microsoft Environmental Sustainability Report, 2024). Google says Scope 3 represented roughly 73 percent of its 2024 footprint and rose 22 percent year over year (Google Environmental Report, 2025). Meanwhile, global data center electricity demand is set to more than double by 2030, which keeps pressure on suppliers to decarbonize materials now (IEA Energy and AI, 2025).
Procurement is the new policy
Regulators are noisy, but procurement is immediate. The SEC’s climate rule is stayed, and Scope 3 is not mandated for U.S. filers, yet large registrants still face emissions disclosure expectations from investors and customers (EY, 2024). In Europe, CSRD timelines shifted, but cross border suppliers remain in scope once reporting phases resume, which means better product data still wins (EU Council press release on CSRD simplification, 2025). Hyperscalers are not waiting, they are embedding carbon asks directly into contracts and RFx.
What they will ask you for
They want verifiable, product specific carbon numbers that roll up cleanly.
- Current, third party verified EPDs aligned to the right PCR for your product family, with declared unit and system boundary spelled out.
- Plant level data, energy mix by site, and evidence of improvements versus your last reference year.
- Machine readable files, consistent SKU mapping, and a contact who can answer follow ups within days, not weeks.
EPDs are the clean receipt
An EPD is the receipt that lets a hyperscaler book reductions with confidence. Without it, engineers often must use conservative defaults, which can push your product out of the running when carbon caps tighten. Product specific EPDs remove that penalty, and they also travel well across rating systems and owner requirements because they sit on recognized program operator rails.
Data center materials are under the microscope
Meta updated its data center specs to require low embodied carbon concrete that is up to 20 percent below regional baselines, after piloting mixes at multiple sites (Meta Sustainability, 2024). Steel, aluminum, cable trays, insulation, raised floors, finishes, sealants and MEP components are seeing similar scrutiny as new campuses and retrofits stack up. If your category has wide GWP spread, expect buyers to sort by EPD first, price second.
Speed beats perfect
Design windows are short, and project teams hate waiting for paperwork. Use an existing PCR that fits rather than holding for a bespoke one. If a PCR expires mid cycle, your EPD does not vanish, you update to the newer rule at renewal. A fast, white glove data collection pass across utilities, materials, and wastes gets you from raw data to a published declaration in record time, and it frees your most valuable people to stay on core work.
Your data needs to be audit ready
Hyperscalers are raising the bar for suppliers, including requirements like moving select manufacturing to carbon free electricity by 2030 for goods they buy, which cascades into site energy plans and bills of materials you will be asked to show (Microsoft Environmental Sustainability Report, 2024). Keep primary data traceable to systems of record, versioned, and mapped to the EPD’s declared unit. That way, when procurement pings you for a variance explanation, you can answer in one email.
ROI shows up in your spec rate
When owners screen for embodied carbon, products without an EPD often get assigned generic factors plus buffers. That inflates totals and nudges you off shortlists. A current EPD breaks that loop and keeps you in play on carbon constrained builds. It definately shows up in your win rate when teams do not need to argue about assumptions.
A simple playbook to get ahead
Start with the top revenue SKUs in data center relevant divisions. Pull one clean reference year of site data, then publish product specific EPDs that match the PCR your competitors already use. Prioritize plants with the highest sales to hyperscaler builds. Refresh annually if volumes or recipes shift. Bring procurement along by tagging EPD IDs in your ERP and your submittal packages so every quote ships with its own carbon passport.
Take the call before it comes
The hyperscaler question is coming. Do you have current EPDs for these SKUs, and can we see the plant data behind them. If the answer is yes, you move forward. If the answer is no, someone else will. Work the steps now, keep it simple, and make your carbon data as easy to buy as your product.
Frequently Asked Questions
What concrete evidence shows hyperscalers focus on supply chain emissions rather than operational emissions?
Microsoft attributes its Scope 3 rise primarily to data center construction materials and hardware, with Scope 3 up 30.9% versus baseline in its latest report (Microsoft Environmental Sustainability Report, 2024). Google reports Scope 3 at roughly 73% of its 2024 footprint with a 22% year over year increase (Google Environmental Report, 2025).
How urgent is the data center demand signal for suppliers of materials like steel and concrete?
The IEA projects global data center electricity use to more than double by 2030 to about 945 TWh, increasing pressure on supply chains to decarbonize materials now (IEA Energy and AI, 2025).
Do shifting regulations reduce the need for product specific EPDs?
No. Even with the SEC rule stayed and Scope 3 not mandated in the U.S., large buyers continue to require supplier emissions data and product level proof. In the EU, CSRD timelines were adjusted but reporting remains, so high quality product data retains commercial value (EU Council press release on CSRD simplification, 2025).
About the Author
Eric works at the intersection of sustainability, regulation, and business strategy, helping manufacturers navigate the evolving landscape of EPDs and LCAs. Having spoken with hundreds of teams across North America, brings a deep understanding of what drives ROI, what regulators are asking for, and how companies can stay ahead with smart, scalable approaches to environmental reporting.
