A Colocation Provider’s Guide to Allocating Emissions to Their Tenants

Companies are increasingly using a hybrid data center strategy, meaning some of their assets and compute are done on-premise, while others are within colocation or cloud data centers. As companies prioritize sustainability and set targets, it is becoming a requirement for colocation providers to report emissions to their tenants. Although general reporting guidelines exist for Scope 1, 2, 3 emissions, there is lack of consistency in how colocation providers provide this for their tenants. In this paper, we discuss the challenges that exist in providing these metrics to tenants and propose rules and best practices to ensure consistent approach across providers.