Sustainable technology continues to be at the forefront of innovation in 2025 as industries grapple with climate challenges, regulatory changes, and increasing consumer demands for eco-friendly practices. From advancements in energy efficiency and AI-powered solutions to circular economies and cutting-edge cooling technologies, experts predict a transformative year for green tech. TechInformed has gathered insights from […]
Sustainable technology continues to be at the forefront of innovation in 2025 as industries grapple with climate challenges, regulatory changes, and increasing consumer demands for eco-friendly practices.
From advancements in energy efficiency and AI-powered solutions to circular economies and cutting-edge cooling technologies, experts predict a transformative year for green tech.
TechInformed has gathered insights from leaders across sectors to explore the most impactful trends shaping the future of sustainable technology with predictions for the year ahead.
The Energy Revolution
From liquid cooling to energy-efficient retrofits, data centres face unprecedented pressure to balance AI workloads with sustainability goals.
Lucian Boldea, CEO, Honeywell Industrial Automation
“Battery energy storage systems will become a cornerstone in stabilising US electric grids as solar and wind power continue their rapid expansion. Solar power generation over the next two years is projected to surge by 75%, with wind expected to rise by 11%. This growth will accelerate the deployment of innovative energy storage solutions to efficiently harness renewable resources and ensure grid reliability.”
Billal Hammoud, CEO, Honeywell Building Automation
“In 2025, we can expect to see increases in building energy efficiency fueled by automation. Breakthroughs in building management systems can monitor, manage and automate energy usage down to the individual plug level, resulting in unprecedented visibility and control over energy consumption.
“Buildings aren’t exactly eco-friendly, and the older the structure, the more problematic it becomes. ‘Buildings’ energy usage and related processes account for approximately 37% of global CO2 emissions, something that decision-makers will increasingly work to address via automation and AI in 2025.”
Read more: Report Reveals the World’s Most Sustainable Mobile Operators
Ian Ferguson, EMEA Director of Sales, Iceotope
“With global data generation set to surpass 180 zettabytes, the data centre infrastructure is being pushed to its limits. As AI workloads become denser and more complex, demanding unseen megawatts of power and generating more heat, traditional cooling systems will prove inadequate under the weight of escalating rack densities, wasting energy and resources. This challenge cannot be met with incremental innovation alone; it demands a paradigm shift.
“Advanced liquid cooling technologies offer a quantum leap in thermal management. In fact, the liquid cooling market’s projected growth from $4.9 billion to $21.3 billion by 2030 demonstrates the industry’s recognition of this necessity.
“Advanced liquid cooling is one part of a broader movement toward intelligent, efficient and sustainable data centre operations. Achieving real, lasting change requires collaboration and innovation, making 2025 the year we set a new standard for what data centres can achieve — demonstrating that technology and environmental stewardship can go hand in hand.”
Kelly Becker, President at Schneider Electric UK and Ireland, Belgium and Netherlands
“Ultimately, the cheapest energy is the energy that’s not used. Next year, we need to see more industries adopt energy efficiency measures, including the uptake of digital tools, energy audits, and equipment optimisation.
“Paired with proper training, this will help businesses cut costs, shrink environmental footprints, and build resilience against volatile energy prices. Widespread uptake of digital technologies will also support economic and industrial growth and create new, highly skilled jobs.”
“As consumers and stakeholders emphasise sustainability more, businesses prioritising energy resilience and environmental responsibility will gain a competitive edge. By demonstrating leadership in energy efficiency, we’ll see companies able to protect their bottom lines and enhance their brand value and reputation in an increasingly eco-conscious market.”
Kelly Becker, President at Schneider Electric UK and Ireland, Belgium and Netherlands
AI’s Role in the Green Transition
While AI drives innovation in green tech, its resource-intensive nature necessitates careful management and mitigation strategies.
Mark Fenton, product engineering director, Cadence
“In 2025, data centres will face mounting pressure to reconcile AI’s surging energy requirements with strict sustainability goals, sparking an industry-wide rethink on AI applications. The infrastructure required to deliver on AI is poised to drive a 160% increase in data centre power demand.
“This challenge creates a pivotal moment for data centres to support high-density compute loads while advancing their environmental commitments.
“As such, tools like digital twins will be essential for data centres to meet AI goals sustainably. They will allow operators to manage power proactively, integrate renewable sources, and optimise cooling measures to meet AI’s GPU usage demands. With these advancements, data centres can help organisations make AI investments that are both impactful and environmentally responsible.”
Steven Webb, UK chief technology and innovation officer, Capgemini
“An important priority for organisations must be identifying ways to mitigate the environmental consequences of GenAI. While a significant proportion of organisations use more energy-efficient hardware, more must be done to mitigate GenAI’s carbon footprint. Next year, we’ll see more industry players doubling down on investments in alternative energy sources and other solutions that can help address this challenge.”
Taco Engelaar, managing director of climate AI platform, Neara
“In 2025, AI will truly showcase its role in the green transition. Given that AI requires a large amount of energy and water to function, it can feel oxymoronic to consider it part of the climate solution. But AI also stands to transform everything from energy network resilience to innovative materials discovery. Whilst it’s not yet a truly green innovation itself, we simply can’t solve the climate crisis without AI.
“In recent years, funding for climate tech and green AI has been increasing, and the appetite for businesses to explore AI-led solutions has grown. In the coming year, as we race towards the 2030 net zero deadline, the impact of this investment and corporate backing will start to be truly felt. To that end, many systems will reach a tipping point, where tech-led climate solutions become the rule, not the exception.”
Digitalisation and Circular Economies
Increased reliance on refurbished products and streamlined reverse logistics will define the next sustainability phase.
James Murdock, co-founder of circular tech company Alchemy
“Businesses are increasingly turning to marketplaces to buy and sell refurbished products in bulk, especially smaller organisations that don’t have direct access to supply chains. Businesses have much to gain from engaging in the circular economy. They can edge closer to their ESG goals and save money. More are catching on to the idea, and I think we’ll see an explosion in 2025.
“Many manufacturers’ existing systems need to be designed for the second-hand market. It requires facilities for grading and refurbishing products, managing inventory, handling sales logistics, etc. As a result, more companies will outsource their circular programs to specialist partners to meet growing consumer expectations for trade-in options.
“These outside experts have the infrastructure, systems, and know-how to manage, refurbish, and sell used products at scale. This allows companies to focus on their core business and ensures that their circular programs are efficient, profitable, and aligned with brand standards.
“Streamlining the reverse logistics process is crucial for getting refurbished products back into the hands of businesses and consumers. The opportunity is enormous for companies that can optimise this process and have efficient systems to handle grading, refurbishment, and resale, but it’s not an easy infrastructure to build.
“A dedicated, system-led approach to managing used products and supporting components is a key element of what Alchemy delivers, and the supply chain is key. Simplifying how complex products are refurbished will also be key to keeping up with the rising demand in the next few years.”
Paul Holland, CEO of Beyond Encryption
“The financial sector faces mounting pressure to reduce its carbon footprint and actively tackle climate change — an issue that remains a top priority in 2025. With nearly three-quarters of consumers now more likely to choose banks with a demonstrable positive environmental impact, sustainability has shifted from being a “nice-to-have” to an essential business imperative.
“As consumer preferences increasingly favour organisations with meaningful green initiatives, banks must ensure that sustainability is at the core of their agendas and integrated into every transformation project. This urgency is highlighted by a recent report, which reveals that at the current pace of progress, only 16% of financial institutions are on track to achieve Net Zero by 2050. The call to action is clear: banks must accelerate their efforts without delay.
Paul Holland, CEO & Founder, Beyond Encryption
“One significant step is transitioning from traditional postal communications to secure digital alternatives. Each posted letter generates up to 29 grams of CO2 through direct and indirect emissions, making this switch a highly effective way for banks to reduce their carbon footprint while aligning with customer preferences. According to Ofcom’s ‘Residential Postal Tracker’, half of consumers no longer wish to receive bank letters, highlighting the diminishing appeal of outdated, carbon-intensive processes.
“The journey to Net Zero is undoubtedly challenging, but for banks, embracing sustainability is no longer an option — it is a crucial factor for thriving in 2025 and beyond.”
Green Supply Chains and Industrial Strategy
Upcoming EU and UK regulations will hold companies accountable for their carbon footprints and drive transparency and innovation in green practices.
Pascal Brier, Chief Innovation Officer at Capgemini
“Nuclear energy stands out as a focal point for 2025: nuclear is re-emerging at the top of the business agenda, propelled by the urgent need for clean, dependable and controllable power to support the rising energy demands of AI and other high-energy technologies.
“Although in September/October 2024, very few top execs globally identified Small Modular Reactors (SMRs) as a top 3 Sustainability technology for 2025, SMR technology development is expected to accelerate by 2025, and other key innovation priorities include strides toward limitless, clean power with nuclear fusion, or Advanced Modular Reactors that differ from light water reactors in the use of new types of fuels and a higher temperature and for some of them the promise to reduce the production of nuclear waste.
“Large-scale investments are expected to accelerate innovation in reactor technology and waste management, as the tech industry acknowledges that renewables alone cannot sustain its energy demands.
“Key technologies, including AI, data, blockchain, IoT and connectivity with Terrestrial Satellite Networks, will play a strategic role in improving supply chains’ cost efficiency, resilience, agility, circularity, and sustainability.
“According to the Capgemini Research Institute’s upcoming report, 37% of top executives see these new-generation supply chains powered by technologies as the top tech trend in industry and engineering in 2025. Additional regulatory and environmental constraints will make this shift all the more critical to ensure competitiveness, agility and resilience.”
Kelly Becker, president at Schneider Electric UK and Ireland, Belgium and Netherlands
“Energy price volatility is set to continue impacting global markets in 2025, posing challenges to supply chains, production costs, and operational budgets. However, this volatility also gives businesses unique opportunities to drive innovation, enhance energy efficiency, reduce future costs, and accelerate sustainability to secure long-term growth.”
