China-based telecom giant ZTE continues to make strong progress toward its 2025 sustainability milestones, blending advanced AI deployment with science-based carbon reduction strategies while tackling the rising energy challenges posed by data centers.
- ZTE’s sustainability integrates AI to reduce emissions and increase efficiency.
- New immersion-cooled data centers save over 1.1 million kWh annually.
- Flagship mobile phones improve battery life by approximately 30%.
What happened
ZTE has released its 2025 Sustainability Report detailing progress against ambitious environmental, social, and governance (ESG) goals. The company emphasizes a systemic approach that includes reducing operational energy consumption, optimizing supply chains, advancing digital infrastructure sustainability, and empowering industries digitally.
A highlight includes the installation of immersion liquid-cooled data centers in China, achieving a power usage effectiveness (PUE) of 1.15 and projected to save over 1.1 million kWh annually. ZTE also reported a 30% improvement in battery life for its latest flagship mobile phones thanks to enhanced designs and energy-saving technologies.
Why it matters
The rapid expansion of AI and digital infrastructure presents significant sustainability challenges due to soaring energy consumption. The International Energy Agency projects that data center electricity use linked to AI could triple by 2030, raising concerns for operators committed to carbon neutrality goals.
ZTE’s integrated approach—combining AI-driven efficiency improvements with greener product design and supplier engagement—serves as a critical example of how telecom companies can mitigate their environmental impact. This holistic strategy supports both corporate carbon reduction targets and broader social benefits like enhanced digital inclusion.
What to watch next
Future developments will focus on scaling up energy-efficient data center technology across China and potentially beyond, following the demonstration model at China Telecom’s Intelligent Cloud Base Huailai Park. Monitoring the environmental performance and adoption rate of these liquid-cooled data centers will provide insight into industry-wide impacts.
ZTE’s continued refinement of AI algorithms and sustainable computing hardware will also be important to observe. The balance between growing AI demands and effective power management strategies will be a key determinant in meeting carbon neutrality by 2030, highlighting the need for advancements in both technology and governance frameworks.