How do sustainability standards influence operational strategies in the data center sector? A comparative analysis of European and non-European companies

Details

Supervisors

Desmet, Carlos

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

enAs the digital economy expands, data centers have become essential yet resource-intensive infrastructure, prompting growing scrutiny of their environmental, social, and governance (ESG) practices. This thesis investigates how data center operators respond to evolving sustainability frameworks, focusing in particular on the European Corporate Sustainability Reporting Directive (CSRD) and its associated European Sustainability Reporting Standards (ESRS). Drawing on institutional, stakeholder, and legitimacy theory, the research analyzes how coercive, mimetic, and normative pressures influence ESG behavior across different regulatory and market contexts. The study employs a mixed-methods design, combining an ESRS-based documentary analysis of ESG reports from 20 data center firms, both EU and non-EU, with semi-structured interviews from sustainability professionals. The findings reveal strong alignment on climate disclosures (ESRS E1), especially among EU firms, but substantial gaps in social (S1, S3) and governance (G1) integration. Non-EU companies exhibit varied ESG maturity, often driven by stakeholder expectations rather than formal regulation. Across jurisdictions, the study identifies a tension between symbolic compliance and substantive integration, particularly in areas such as Scope 3 emissions, supply chain due diligence, and ESG governance accountability. This research contributes to the understanding of ESG institutionalization in the digital infrastructure sector and highlights the role of mandatory frameworks like the CSRD in moving firms from communication to transformation. While climate strategies are increasingly mature, broader ESG accountability remains uneven and often reputationally driven. The findings underscore the need for more enforceable standards, better assurance mechanisms, and sector-specific benchmarks to enhance the credibility and impact of corporate sustainability practices.