1.3 The time to act is now Semiconductors and data centres consume a combined 1.5 trillion litres of water a year – more than the entire country of Denmark.The tech sector plays a key role in the transition to a nature-positive economy. Its products can enable progress and innovation across many industries, but the sector is also a contributor to natural resource consumption and nature impact. Semiconductors and data centres consume a combined 1.5 trillion litres of water a year,44 more than the entire country of Denmark.45 The sector accounts for ~4% of global energy use,46 with growth expected to drastically increase energy consumption in future. The International Energy Agency (IEA) projects that in 2026, data centres’ global energy consumption could be on par with that of Japan.47 Mining for critical inputs, such as silicon, copper and gallium, will grow to support expected sector growth, creating additional pressures on nature. Tech companies can transform business models and practices to minimize nature impacts and dependencies. To avoid nature-related risk, companies can invest in reducing dependencies, making supply chains more resilient and protecting and restoring nature. Wherever possible, it is best for tech companies to avoid, then reduce, drivers of nature loss in their operations and value chains to enable growth in light of increasing demand for their products.Company commitments to lower impacts and restore nature are a critical starting point and many of the largest tech players have already begun taking action. Microsoft and Google both plan to replenish more water than they consume by 2030. With 47% of the world’s population expected to be living in areas with strained water supplies by 2030, water-related commitments are essential.38 Three of the largest data centre companies – Google Cloud, Microsoft Azure and Amazon Web Services (AWS) – have commitments to purchase renewable power for 100% of their data centre operations by no later than 2030.39 Energy demand and associated generation create nature impacts across water, greenhouse gas (GHG) emissions and land, so a shift to low- and zero-carbon sources brings material nature benefits. While corporate commitments are voluntary and therefore variable, governments are beginning to pass regulations intended to limit or mitigate environmental impact from tech, at least for energy. The EU passed a revised Energy Efficiency Directive in 2023 that included an obligation for “the monitoring and reporting of the energy performance of data centres”. The directive allows the European Commission to collect and publish data on the energy and water use of data centres, with the goal of a ~12% reduction in EU energy consumption by 2030. Since 2019, the EU has also required that servers and data storage products sold in the region meet requirements for minimum energy efficiency and maximum energy consumption when idle. In China, the 2023 Action Plan for the High-Quality Development of Computing Power Infrastructure prioritized core principles including “green, low-carbon, secure and reliable”. The Chinese government also released a green development plan in 2023 for data centres, which set targets on energy efficiency and renewable energy use. Similar restrictions and goals have been set elsewhere – in the UK, Ireland, Japan, Singapore and the US, to name a few.40 The UN Environment Programme has issued recommendations along these lines, encouraging governments to establish regulations regarding the environmental impacts of AI.41 Where national policies misalign with community needs, local pushback against new tech development is growing. Communities are increasingly aware of and concerned by potential nature impacts from data centres and tech manufacturing. Policies are not limited to restrictions or targets – there have also been major government investments in tech in recent years. Between the CHIPS Act taking effect in 2022 and mid- 2024, the US semiconductor industry invested over $200 billion in manufacturing.42 The CHIPS Act Notice of Funding Opportunity for Commercial Fabrication Facilities emphasized the importance of energy efficiency and sustainability and encouraged applicants to utilize clean energy sources to the maximum extent possible.43 While the nature- related benefits of the CHIPS Act and other policy incentives may not be immediate, these policies fuel research that ultimately supports sector transition to nature positive.1.2 Efforts to mitigate impacts and dependencies Nature Positive: Role of the Technology Sector 17

Nature Positive Role of the Technology Sector 2025