Amazon Web Services (AWS) has partnered with Swedish steel producer SSAB to integrate fossil-free steel into its data centre infrastructure. Aiming to create a fossil-free value chain by changing the way steel is produced, SSAB’s innovative process uses hydrogen instead of coal in steelmaking, significantly reducing carbon emissions. AWS plans to deploy this steel in its three new data centres in Mälardalen, Sweden, claiming it will result in a 7% reduction in CO2 emissions in its Swedish operations.
Data centres are crucial to enabling our modern digital society, but can be incredibly energy- and resource-intensive. While decarbonizing these asset types is an essential component in moving towards net zero emissions globally, it is not a straightforward path. A significant issue to tackle is the embodied carbon from the construction of data centres; contending with the environmental impact of the concrete and steel used as building materials. AWS’s move demonstrates corporate commitment to decarbonizing supply chains and reducing embodied carbon emissions.
However, broader industry challenges still limit low-carbon steel production globally. ArcelorMittal, a major steelmaker, recently delayed its key green steel investments due to unfavourable market conditions and inconsistent policy support. This underscores the complexities of scaling fossil-free steel production, as industry players contend with high costs, infrastructure hurdles and more. Industry-wide transformation will require stronger policies and economic incentives to overcome barriers and scale low-carbon steel solutions.
