Japanese IT service provider and data center developer NTT Data has signed a partnership agreement with Climeworks, a carbon removal firm.

The deal will see Climeworks provide NTT with a diversified carbon removal portfolio designed to address residual emissions. It represents Climeworks’ first portfolio agreement with a major data center firm.

According to the companies, the portfolio will comprise a range of carbon removal options, including engineered and nature-based projects. Climeworks claims that all the carbon removal options will be sourced and quality‑vetted through its “rigorous scientific due diligence process.”

“As artificial intelligence scales and data center construction expands, companies need clear, credible ways to manage their carbon footprint,” said Christoph Gebald, co‑CEO and co‑founder of Climeworks. “Through this agreement, we’re helping NTT Data progress toward its net-zero operational goals. By providing access to hundreds of kilotons of carbon removal over the next decade, Climeworks is demonstrating that carbon removal is becoming a critical part of the AI economy.”

The partnership aims to support NTT’s Net Zero 2040 plant, which aims to achieve net-zero greenhouse gas emissions across its entire value chain (Scopes 1, 2, and 3) by 2040.

“Climate action requires practical execution, clear priorities, and transparency,” said Yutaka Sasaki, President and CEO, NTT Data Group. “NTT Data is continuously reducing our carbon emissions, and we extend our overall expertise and experience to help clients along their own journeys to truly sustainable operations. Our agreement with Climeworks complements these efforts by applying high-quality CDR credits toward our own residual emissions, and we believe our support will help expand the effectiveness and reach of CDR technology overall.”

Climeworks has historically focused on the Direct Air Capture (DAC) sector and currently operates two DAC plants in Iceland, which were the first to be deployed worldwide. The company now offers tailored carbon removal profiles, designed for both businesses and individuals. While the deal with NTT is its first direct partnership with a data center firm, in 2022, the company inked a 10,000-ton carbon removal deal with Microsoft for credits generated by its DAC assets.

Based out of Tokyo, Japan, NTT has a global portfolio of data center assets, offering more than 2GW of capacity across some 160 data centers in 20 markets, including the US, the Netherlands, Germany, the UK, Spain, France, Austria, Switzerland, South Africa, Thailand, Malaysia, Vietnam, Hong Kong, Indonesia, Japan, Singapore, and India.

In recent years, the company has increased its focus on sustainability, signing deals with e-waste recycling firm n2s, launching a heat-reuse program in Berlin, and signing up to the Climate Pledge initiative. NTT Data aims to reach net zero across Scope 1 and 2 in data centers by 2030 and global offices by 2035.