Tag: 3BL

Why Megawatt Charging?

As the electrification of heavy-duty transport accelerates, the demand on charging infrastructure is increasing exponentially. While the Combined Charging System (CCS) supports charging power up to 500 kW, this is insufficient for heavy-duty vehicles with battery capacities ranging from 500 to 1000 kWh. This is where the Megawatt Charging System (MCS) comes into play, a new charging standard that enables charging power of up to 3.75 MW (3000 A at 1250 V DC).

Technical Specifications of MCS

• Maximum charging power: 3.75 MW
• Voltage: Up to 1250 V DC
• Current: Up to 3000 A
• Communication: Automotive Ethernet (IEEE 10Base-T1S), replacing Powerline Communication (PLC) used with CCS
• Connector design: Liquid-cooled, with automated locking and optional robotic support

These specifications make it possible to charge a 1000-kWh battery in under 30 minutes, an essential factor for the economic operation of electric trucks in long-haul transport or other heavy-duty vehicles.

Industries and Application Areas

The introduction of the Megawatt Charging System (MCS) opens new possibilities for electrifying vehicles and machines with particularly high energy demands. Industries that rely on large battery capacities, short charging times, and high availability stand to benefit the most. Key application areas include:

• Long-haul transport and logistics: Charging times under 45 minutes enable break-compliant charging in accordance with EU driver regulations.
• Mining vehicles: Electrification of large haul trucks and loaders operating in remote or underground environments, requiring robust and fast charging solutions.
• Construction and agricultural machinery: Electrification of heavy off-highway vehicles.
• Maritime applications: Electric ferries and harbor tugs requiring high charging power.
• Airport operations: Ground support equipment such as pushbacks and baggage tractors.
• Public transport and bus depots: Fast depot charging overnight or at terminal stops.

Technological Challenges

The implementation of the Megawatt Charging System (MCS) introduces a range of complex technical challenges that go far beyond current e-mobility standards. One of the most critical hurdles is thermal management. At current levels of up to 3000 amps, significant heat losses occur, which not only reduce efficiency but also pose safety risks. To reliably dissipate this heat, MCS relies on an actively cooled cable and connector system with liquid cooling, ensuring stable thermal performance even under continuous load.

Another key aspect is electrical safety. With charging voltages reaching up to 1250 volts, the requirements for insulation, overvoltage protection, and arc detection increase significantly. The MCS specification, therefore, includes multi-layered safety mechanisms at both the hardware and protocol levels. These include galvanic isolation, automated locking systems, and continuous monitoring of electrical parameters throughout the charging process.

Communication between the vehicle and the charging infrastructure also undergoes a fundamental shift with MCS. Instead of the previously used Powerline Communication (PLC), an automotive Ethernet-based communication technology (IEEE 10Base-T1S) is implemented. This change is necessary to ensure electromagnetic compatibility at high power levels while enabling robust, low-latency data transmission, especially for charging control commands and authentication processes.

Finally, the physical handling of the system presents its own challenges. Due to the size and weight of the MCS connector and cable, the use of robotic charging systems is being considered in many applications. These systems aim to improve ergonomics and enable automated, standardized charging infrastructure for fleets and logistics hubs.

Infrastructure and Grid Requirements

Implementing megawatt charging systems places significant demands not only on vehicle technology but also on charging infrastructure and energy supply. Due to the extremely high-power levels, up to 3.75 megawatts per charging point, a direct connection to the medium-voltage grid is typically essential. This means that MCS stations cannot be operated via conventional low-voltage connections like standard fast chargers. Instead, they require dedicated transformers and switchgear to deliver the necessary power.

A central issue in this context is load management. To avoid grid overloads while maintaining economic viability, MCS sites must be equipped with intelligent energy management systems. These systems coordinate charging schedules, prioritize vehicles based on operational needs, and can integrate local energy sources such as photovoltaic systems or stationary battery storage. Especially in logistics hubs or highway corridors where multiple vehicles may charge simultaneously, dynamic load balancing is critical.

Scalability is another key consideration. The infrastructure must be designed to grow with increasing demand, both in terms of physical layout and grid capacity. This requires close collaboration between charging infrastructure providers, utility companies, and local authorities, particularly when it comes to permitting and expanding medium-voltage connections.

Standardization also plays a decisive role. Only if MCS charging points are interoperable across manufacturers and can be seamlessly integrated into existing backend systems, a widespread rollout will be successful. The CharIN initiative is therefore working intensively on the global harmonization of MCS specifications to ensure interoperability and investment security.

What comes next: MCS as a Strategic Enabler of Transport Decarbonization

The Megawatt Charging System is on the verge of industrial deployment and is expected to play a central role in transforming the transport sector over the coming years. Initial pilot projects involving MCS-capable vehicles and infrastructure are already underway in Europe and North America. From 2025 onward, broader market adoption is anticipated, particularly in long-haul transport, where charging time and range are critical economic factors.

In the long run, MCS will extend beyond highway corridors and logistics centers. It will also be implemented in multimodal transport hubs like ports, airports, and industrial areas. In these settings, MCS can act as a technological link between different modes of transportation, supporting seamless electrification, from trucks to ships to automated ground vehicles.

Another driver of MCS adoption is the increasing automation of fleet operations. Combined with autonomous vehicles and robotic charging systems, fully automated charging processes could emerge, operating around the clock and offering a major advantage for logistics companies with high throughput and tight schedules.

From a regulatory perspective, the direction is also clear: the EU and other regions are tightening CO₂ fleet limits and promoting zero-emission zones, further accelerating demand for high-performance charging infrastructure. Incentive programs and regulatory support are expected to boost the rollout of MCS sites.

Technologically, the system is designed to be scalable and future-proof. The combination of high charging power, standardized interfaces, and digital communication makes MCS a platform technology, well-suited for future applications such as bidirectional charging (vehicle-to-grid) or grid-supportive load shifting.

In summary, MCS is much more than just a new connector, it is a crucial part of the energy transition in the transportation sector. Those who invest in this technology today are laying the groundwork for an emission-free, efficient, and connected heavy-duty transport system of the future.

How Keysight Supports the Transition to Megawatt Charging

In this dynamic environment, Keysight supports OEMs, charging infrastructure providers, and component manufacturers in navigating the technical challenges of megawatt charging. With decades of experience in high-power electronics, automotive testing, and energy systems, Keysight offers comprehensive test and validation solutions focused on performance, safety, and interoperability across the entire MCS ecosystem.

By aligning with standards such as ISO 15118-20 and actively contributing to the development of the MCS specification, Keysight test solutions ensure that new MCS solutions meet both current and future requirements. Whether you’re developing next-generation charging systems or validating individual components, Keysight provides the tools and expertise to accelerate development cycles and reduce time-to-market.

Keysight’s solution portfolio includes:

• High-power test systems for EVSE and EV interface components
• Conformance and interoperability testing for ISO 15118 and MCS protocols
• Power quality and thermal behavior analysis
• Advisory services for system architecture and compliance

With this combination of technology, experience, and industry insight, Keysight is a trusted partner in building a safe, scalable, and future-ready charging infrastructure – designed to meet the demands of next-generation electric heavy-duty transport.

Learn more about the Megawatt Charging Test Solution at: www.keysight.com/megawatt-charging

Why Megawatt Charging?

As the electrification of heavy-duty transport accelerates, the demand on charging infrastructure is increasing exponentially. While the Combined Charging System (CCS) supports charging power up to 500 kW, this is insufficient for heavy-duty vehicles with battery capacities ranging from 500 to 1000 kWh. This is where the Megawatt Charging System (MCS) comes into play, a new charging standard that enables charging power of up to 3.75 MW (3000 A at 1250 V DC).

Technical Specifications of MCS

• Maximum charging power: 3.75 MW
• Voltage: Up to 1250 V DC
• Current: Up to 3000 A
• Communication: Automotive Ethernet (IEEE 10Base-T1S), replacing Powerline Communication (PLC) used with CCS
• Connector design: Liquid-cooled, with automated locking and optional robotic support

These specifications make it possible to charge a 1000-kWh battery in under 30 minutes, an essential factor for the economic operation of electric trucks in long-haul transport or other heavy-duty vehicles.

Industries and Application Areas

The introduction of the Megawatt Charging System (MCS) opens new possibilities for electrifying vehicles and machines with particularly high energy demands. Industries that rely on large battery capacities, short charging times, and high availability stand to benefit the most. Key application areas include:

• Long-haul transport and logistics: Charging times under 45 minutes enable break-compliant charging in accordance with EU driver regulations.
• Mining vehicles: Electrification of large haul trucks and loaders operating in remote or underground environments, requiring robust and fast charging solutions.
• Construction and agricultural machinery: Electrification of heavy off-highway vehicles.
• Maritime applications: Electric ferries and harbor tugs requiring high charging power.
• Airport operations: Ground support equipment such as pushbacks and baggage tractors.
• Public transport and bus depots: Fast depot charging overnight or at terminal stops.

Technological Challenges

The implementation of the Megawatt Charging System (MCS) introduces a range of complex technical challenges that go far beyond current e-mobility standards. One of the most critical hurdles is thermal management. At current levels of up to 3000 amps, significant heat losses occur, which not only reduce efficiency but also pose safety risks. To reliably dissipate this heat, MCS relies on an actively cooled cable and connector system with liquid cooling, ensuring stable thermal performance even under continuous load.

Another key aspect is electrical safety. With charging voltages reaching up to 1250 volts, the requirements for insulation, overvoltage protection, and arc detection increase significantly. The MCS specification, therefore, includes multi-layered safety mechanisms at both the hardware and protocol levels. These include galvanic isolation, automated locking systems, and continuous monitoring of electrical parameters throughout the charging process.

Communication between the vehicle and the charging infrastructure also undergoes a fundamental shift with MCS. Instead of the previously used Powerline Communication (PLC), an automotive Ethernet-based communication technology (IEEE 10Base-T1S) is implemented. This change is necessary to ensure electromagnetic compatibility at high power levels while enabling robust, low-latency data transmission, especially for charging control commands and authentication processes.

Finally, the physical handling of the system presents its own challenges. Due to the size and weight of the MCS connector and cable, the use of robotic charging systems is being considered in many applications. These systems aim to improve ergonomics and enable automated, standardized charging infrastructure for fleets and logistics hubs.

Infrastructure and Grid Requirements

Implementing megawatt charging systems places significant demands not only on vehicle technology but also on charging infrastructure and energy supply. Due to the extremely high-power levels, up to 3.75 megawatts per charging point, a direct connection to the medium-voltage grid is typically essential. This means that MCS stations cannot be operated via conventional low-voltage connections like standard fast chargers. Instead, they require dedicated transformers and switchgear to deliver the necessary power.

A central issue in this context is load management. To avoid grid overloads while maintaining economic viability, MCS sites must be equipped with intelligent energy management systems. These systems coordinate charging schedules, prioritize vehicles based on operational needs, and can integrate local energy sources such as photovoltaic systems or stationary battery storage. Especially in logistics hubs or highway corridors where multiple vehicles may charge simultaneously, dynamic load balancing is critical.

Scalability is another key consideration. The infrastructure must be designed to grow with increasing demand, both in terms of physical layout and grid capacity. This requires close collaboration between charging infrastructure providers, utility companies, and local authorities, particularly when it comes to permitting and expanding medium-voltage connections.

Standardization also plays a decisive role. Only if MCS charging points are interoperable across manufacturers and can be seamlessly integrated into existing backend systems, a widespread rollout will be successful. The CharIN initiative is therefore working intensively on the global harmonization of MCS specifications to ensure interoperability and investment security.

What comes next: MCS as a Strategic Enabler of Transport Decarbonization

The Megawatt Charging System is on the verge of industrial deployment and is expected to play a central role in transforming the transport sector over the coming years. Initial pilot projects involving MCS-capable vehicles and infrastructure are already underway in Europe and North America. From 2025 onward, broader market adoption is anticipated, particularly in long-haul transport, where charging time and range are critical economic factors.

In the long run, MCS will extend beyond highway corridors and logistics centers. It will also be implemented in multimodal transport hubs like ports, airports, and industrial areas. In these settings, MCS can act as a technological link between different modes of transportation, supporting seamless electrification, from trucks to ships to automated ground vehicles.

Another driver of MCS adoption is the increasing automation of fleet operations. Combined with autonomous vehicles and robotic charging systems, fully automated charging processes could emerge, operating around the clock and offering a major advantage for logistics companies with high throughput and tight schedules.

From a regulatory perspective, the direction is also clear: the EU and other regions are tightening CO₂ fleet limits and promoting zero-emission zones, further accelerating demand for high-performance charging infrastructure. Incentive programs and regulatory support are expected to boost the rollout of MCS sites.

Technologically, the system is designed to be scalable and future-proof. The combination of high charging power, standardized interfaces, and digital communication makes MCS a platform technology, well-suited for future applications such as bidirectional charging (vehicle-to-grid) or grid-supportive load shifting.

In summary, MCS is much more than just a new connector, it is a crucial part of the energy transition in the transportation sector. Those who invest in this technology today are laying the groundwork for an emission-free, efficient, and connected heavy-duty transport system of the future.

How Keysight Supports the Transition to Megawatt Charging

In this dynamic environment, Keysight supports OEMs, charging infrastructure providers, and component manufacturers in navigating the technical challenges of megawatt charging. With decades of experience in high-power electronics, automotive testing, and energy systems, Keysight offers comprehensive test and validation solutions focused on performance, safety, and interoperability across the entire MCS ecosystem.

By aligning with standards such as ISO 15118-20 and actively contributing to the development of the MCS specification, Keysight test solutions ensure that new MCS solutions meet both current and future requirements. Whether you’re developing next-generation charging systems or validating individual components, Keysight provides the tools and expertise to accelerate development cycles and reduce time-to-market.

Keysight’s solution portfolio includes:

• High-power test systems for EVSE and EV interface components
• Conformance and interoperability testing for ISO 15118 and MCS protocols
• Power quality and thermal behavior analysis
• Advisory services for system architecture and compliance

With this combination of technology, experience, and industry insight, Keysight is a trusted partner in building a safe, scalable, and future-ready charging infrastructure – designed to meet the demands of next-generation electric heavy-duty transport.

Learn more about the Megawatt Charging Test Solution at: www.keysight.com/megawatt-charging

This article is authored by Scott Smith, Director of Mission Critical Offerings, Trane Technologies.

When people ask what I do as the director of Mission Critical Offerings, the conversation often turns to data centers. Most know these facilities exist somewhere “out there,” quietly supporting everything from Spotify playlists to fraud detection in financial systems. Fewer realize how central they’ve become to daily life — or the scale of the energy and engineering required to keep them running.

Data center energy consumption accounts for over 4% of total U.S. power use, according to the U.S. Department of Energy. That number keeps climbing, and much of the money spent on powering data centers goes to cooling those high-powered computers. Understanding what drives data center energy consumption, and why cooling and reliability matter so much, starts with understanding the very nature of a data center. 

What is a data center? 

At its heart, a data center is a facility that houses hundreds, thousands or even tens of thousands of servers. Think of them as supercharged computers. These servers are responsible for “computational horsepower” — the ability to process complex transactions, store vast amounts of data, and keep the digital world spinning. When you upload a photo to the cloud, get a recommendation from an AI chatbot, or stream a movie online, your request is being processed somewhere inside a data center. 

Before, we used to conduct relatively simple searches and transactions. Now, with the meteoric rise of AI and machine learning, the complexity and demand for computational power have exploded. Much of this new digital intelligence depends on vast “computational horsepower,” and that horsepower generates heat.

HEALTHY SPACES PODCAST: Cooling the Cloud: Innovation at the Heart of Data Centers. This episode features Scott Smith and Dr. Dereje Agonafer, Professor of Mechanical and Aerospace Engineering at the University of Texas at Arlington.

The growing energy burden of data centers as digital infrastructure

Chips inside server racks can execute billions of calculations per second. This processing also creates heat, and as chip densities and computational needs rise, so does the energy consumed and heat produced. If this heat isn’t effectively managed, chips can overheat and shut down, threatening the reliability of digital services for millions of users. 

For small colocation providers, with fewer backup options, the impact of a shutdown can be catastrophic. Which is why, in our world, uptime and reliability are paramount. 

Why cooling and energy efficiency matter for high performance computing

At its core function, cooling equipment ensures that the heat generated by high-density chips is pulled away, so that chips operate at optimal and designed levels. Traditionally, data centers relied on air cooling — fans blowing air over chips and moving that air out of the data hall. But, as chip densities have increased in AI data centers, the need for better cooling solutions to increase energy efficiency in data centers has grown, ushering in the age of liquid cooling and direct-to-chip solutions. 

Liquid cooling works more like a cold shower compared to opening a window in your house — much more effective at rapidly removing heat. By pressing a cold plate directly onto the chip and using water or specialized fluids to carry heat away, we’re able to keep more powerful processors running at their intended capacity. On the horizon, even more advanced “two-phase” cooling systems that rely on refrigerants and phase change, are moving toward the mainstream as chip densities continue to rise. 

Looking forward, immersion cooling and other novel approaches are being developed to meet the relentless growth in data center energy consumption. But, the fundamental challenge remains the same: Keeping digital workloads running smoothly, safely and efficiently. 

Beyond cooling efficiency

In addition to reducing data center energy consumption through improved controls and thermal energy storage, there’s momentum building around data center sustainability through waste heat recovery. The concept itself is simple (and not new): instead of simply wasting heat (which is also energy), data centers can reuse it for free cooling or share it with neighboring communities or industrial processes, feeding district heating systems and turning a liability into community value.

As population density rises around data centers, and regulatory expectations tighten around the world, innovation in capturing and managing waste heat will be critical. 

What’s next in the near-term for data centers

We can’t predict everything, but two things seem certain. First, the need for more reliable, scalable and sustainable data center cooling solutions is only going to accelerate as data center sizes and capacities continue to expand. We’re also seeing unprecedented growth not just in computing power, but in the equipment designed to support these massive operations. For example, where air-cooled chillers were once commonly sized at around two megawatts, we’ve recently announced a three megawatt (about 850 ton) air-cooled chiller — truly transformational in the industry. On the water-cooled side, chillers have grown to a staggering 18 to 20 megawatts in capacity. 

And it’s not only chillers — CDUs (coolant distribution units) used for direct-to-chip liquid cooling are scaling up as well. The industry norm was previously one megawatt, but now solutions are arriving that can be scaled up to ten megawatts to match ever-growing data hall densities. 

Second, the boundary between data centers and the communities they serve will continue to blur in ways that support not just uptime, but also data center sustainability and societal benefit. As technology continues to advance, staying ahead means innovating in both cooling technology, and in how we think about the relationship between these critical facilities and the world around them. 

As the world becomes more digital and interconnected, data centers are becoming both engineering marvels and essential infrastructure. The challenge — and the opportunity — is to ensure innovative cooling and data center energy strategies keep pace with their explosive growth, delivering reliable, sustainable and valuable computing for all.

Originally published on Nielsen Insights

Marketing is evolving faster than ever, powered by cutting-edge tech and changing consumer habits. And marketers aren’t just keeping up—they’re leading the charge.

AI is now a game-changer, with 59% of marketers worldwide recognizing it as key for campaign personalization and optimization, underscoring its power to streamline operations and free up valuable time. That same momentum is driving strong investment in connected TV (CTV), which has firmly secured its place as a top-tier channel. In fact, 56% of marketers are ramping up their CTV, making it one of the few digital channels consistently seeing year-over-year growth as they capitalize on evolving viewing behaviors. Retail Media Networks (RMNs) are also stepping into the spotlight. No longer just a bottom-funnel tool, RMNs are now a strategic force across the entire consumer journey. A strong 65% of marketers globally are embracing their potential to unlock deeper insights and deliver impact at every stage.

While these global trends set the stage, regional priorities bring unique nuances. In the Asia Pacific (APAC) region, for example, 2025 marketing goals are clear. Brand awareness is a primary focus for 32% of marketers, showing a slight rise from 31% the previous year. Beyond market visibility, marketers place a strong emphasis on tangible outcomes, with revenue growth remaining a key objective for 25% of them.

The prioritization of these goals means APAC marketers are balancing spreading market presence with the imperative for strong financial performance. A balanced approach where top-of-funnel awareness builds long-term equity, and bottom-funnel conversions prove market success, directly shapes the demands placed on media planning.

Aligning media strategies with objectives

A consistent emphasis on brand awareness naturally steers media strategies toward methods that maximize reach and consistent exposure. To meet that need for broad reach, APAC marketers are driving a significant shift, with 79% saying they’re moving spending to digital channels. The move leverages widespread internet and mobile usage across the region, allowing for consistent presence and vast audience engagement. Digital thus proves itself as the go-to platform for achieving wide visibility, which is essential for brand recall.

What channels, in particular, are APAC marketers investing in? Social media tops the list, with 68% of marketers saying they planned to increase spend. Online/mobile (video) also receives substantial budget increases, with 67% of marketers investing more budget. Similarly, online/mobile (display) sees 66% of marketers boosting spend. These platforms are clearly favored for their wide reach and engaging visual formats. Native advertising also shows a particularly sharp shift, with 54% of marketers planning to increase spend compared to 46% in 2024, underscoring its growing strategic role in seamless content integration.

Complementing the move to digital is a clear drive for efficiency and direct results. A substantial 69% of marketers intend to spend more on performance marketing while reducing investment in traditional brand building efforts. Tactical choices like this directly support objectives of revenue growth and customer acquisition, where measurable impact and conversions are very important for proving success. In a related trend, 69% also said they’re focusing on less expensive marketing channels (including options other than traditional TV).

Marketers are also actively embracing innovation to enhance their reach and targeting. A significant 77% plan to increase spend on newer channels such as connected TV (CTV) and influencer marketing. Newer channels offer dynamic avenues for engaging audiences, providing opportunities for richer content experiences. APAC marketers are meticulously aligning their media resource allocation with their strategic objectives, ensuring every investment contributes directly to their defined goals for the year, providing a results-oriented approach to success.

Understanding APAC measurement tools

To truly confirm the efficacy of their meticulously aligned strategies and substantial investments, APAC marketers rigorously turn to measurement. While the push toward proactive and data-driven approaches is evident, mastering the art of gauging marketing performance and proving its worth is not without its hurdles. So, what specific tools are organizations leveraging, and what challenges persist in gaining a truly holistic view of ROI?

Across the board, marketers in the APAC region are deploying a variety of tools to evaluate the holistic ROI of their marketing performance. A notable 53% of organizations adopt marketing mix modeling as a foundational method for evaluating performance. Reflecting a balanced strategic intent, both sales lift and brand lift studies are equally prioritized by 48% of marketers, affirming their dual focus on driving lower-funnel conversions and strengthening upper-funnel brand impact.

Complementing these broader assessments, APAC marketers also tap into more granular data for immediate insights. For a significant 62% of them, media metrics prove absolutely pivotal, providing that immediate pulse on campaign performance. Attribution models are leveraged by 30% to precisely understand the contributions of each touchpoint along the customer journey. And to fully round out these detailed insights, surveys prove essential for 36% of marketers, capturing nuanced customer perspectives often missed by purely quantitative data.

Even as marketers embrace sophisticated measurement techniques, gaining a truly holistic view of performance remains a challenge. In fact, a surprising 17% of APAC marketers still rely on gut feeling to assess marketing ROI. Such reliance points to a persistent gap between the availability of advanced tools and how consistently they are applied. Effective decision-making requires not only access to data but also its thorough and reliable use to drive meaningful results. Our latest report explores this disconnect between perceived channel effectiveness and actual ROI in greater depth. 

To uncover deeper insights, identify hidden value in your current strategy, and take meaningful steps toward more accountable, performance-focused marketing, download the 2025 Annual Marketing Report: From Chaos to Clarity: Unlocking the Power of Data-Driven Marketing now.

Lei Qiu| Chief Investment Officer —Thematic Innovation Equities

Ben Ruegsegger, CFA| Portfolio Manager and Senior Research Analyst—Sustainable Thematic Equities

James Russo| Senior Research Analyst—Strategic Core Equities

Henna Nordqvist, CFA| Corporate Credit Analyst—Fixed Income

Companies’ rapid AI uptake brings environmental and social benefits—along with risks.

Companies are accelerating their adoption of artificial intelligence (AI) to boost productivity and rein in costs—an urgent priority in today’s environment of elevated inflation and sluggish growth. This speed makes it important for investors to pay close attention. In our view, the environmental and social implications of AI—energy intensity, workforce impact and data governance—are financially material to most companies around the world.

Indeed, artificial intelligence is the most consequential technological innovation since the internet, poised to permeate every industry and reshape economies and societies in the years ahead. Business adoption of AI has intensified since late 2022, when generative AI* tools like ChatGPT burst onto the scene. Functions such as IT, finance, and supply chain and manufacturing have been early leaders, while areas from marketing and sales to product development and human resources are poised for broad adoption in 2025 (Display).

As AI adoption spreads across more business functions, we think it helps to take a balanced, critical look from multiple angles. One way is to map environmental and social risks and opportunities—along with large-scale effects, business and investment implications, and impacts on everyday life—into an AI impact matrix (Display).

Under the environmental dimension of the matrix, energy emerges as the dominant theme, making energy the natural place to start.

AI Ramps Up Energy Demands—but Efficiencies Too

Perhaps the biggest environmental risk posed by AI comes from its energy requirements as hyperscalers—companies that provide massive, scalable and on-demand computing resources—undertake a large-scale build-out of data centers. Demand is likely to continue climbing for the foreseeable future (Display).

Data-center share of global energy consumption is set to increase significantly. In 2022, data centers made up about 2% of global electricity demand, and this is projected to reach as much as 7% by 2030. There are already six states in the US where data centers consume more than 10% of electricity supply, with Virginia leading at 25%.

This energy demand is translating into opportunity in two ways. It’s facilitating greater adoption of clean energy, and hyperscalers are making their data centers more energy efficient—driving changes across their supply chains that may translate into opportunities for investors. The risk, however, is that many new AI data centers are being powered by natural gas—a non-clean energy source—which could put hyperscalers’ long-term zero-carbon commitments at risk.

For bond investors, AI’s energy and capital intensity are a double-edged sword. Issuers slow to adapt may face credit pressures, reduced access to capital and higher funding costs. But many companies that are building or financing AI-intensive data centers, together with utilities that are modernizing their grids and sourcing renewable energy, are issuing green bonds to address AI’s growing energy footprint.

From an actively managed perspective, the key is to identify issuers with credible transition strategies, AI-related competitive advantages, disciplined capital allocation and diversified funding access. These are the companies most likely to enhance credit quality over time and deliver attractive opportunities.

Growth in power demand is also putting pressure on infrastructure more broadly. Companies likely to benefit from upgrades include suppliers of high- and medium-voltage cables, providers of energy-efficient climate control systems, manufacturers of gas turbines (particularly with AI-driven control systems) and makers of fuel cells that can generate electricity on-site at data centers.

Water security is another large-scale environmental risk. Failure to manage it may inflict material damage on business and investment outcomes, while companies that are strategically focused on the issue could gain competitive advantages.

In other environment-related areas, AI can help improve the monitoring and measurement of CO₂ emissions—for example, capturing and interpreting satellite data to assess emissions from power plants or vehicles. It can also refine estimates of wildfire emissions, strengthen the monitoring of carbon sequestration efforts and improve the integrity of carbon markets.

Risk to Employment Depends on Successful Transition

Within the social dimension of our AI impact matrix, three themes stand out: employment risk, the spread of misinformation and bias.

One of the most significant social risks is mass job displacement. According to the World Economic Forum’s Future of Jobs Report 2025, businesses expect AI and information technology to have the most transformative effect on their operations by 2030. Yet the overall impact on employment may be benign (Display).

As previous technological revolutions have shown, disruption involves not only the number of jobs lost and gained but also changes in the composition of the workforce and the nature of work. As AI displaces clerical and administrative roles, we expect new jobs to emerge in AI-related fields. Whether this results in a net gain in employment will depend on how well businesses and individuals adapt and reskill.

While transition poses risks for many companies, it also creates opportunities for others—for example, providers of AI-related education and training. Investors, in our view, should monitor developments in this area.

Misinformation and disinformation—already endemic to social media and now amplified by AI—pose large-scale risks to public trust in business, government and other institutions. A loss of confidence on this scale could carry significant social and economic costs.

Bias in AI models is also a risk. Consumers may be disadvantaged by human biases inadvertently built into training data—for example, facial recognition systems that perform less accurately on darker skin tones. Where such biases occur, companies may face reputational damage or legal action, with consequences that could extend to investors.

Stay Alert as AI Evolves

In our analysis, governance is the next stage in assessing AI’s environmental and social impacts. To address this, we’ve identified 10 core principles for the responsible use of AI, along with a set of questions investment teams can use when engaging† corporate management.

While asset managers exercise corporate oversight, investors also need to remain vigilant, as differentiating between AI winners and losers is more important than ever. AI is reshaping companies rapidly, and in our view, investors must stay alert to both the risks and the opportunities that emerge as the technology matures.
 

^{*Generative AI is a subset of AI. While AI is a broad field in which systems can perform intellectual tasks, generative AI can create new content and ideas, such as images and videos, and reuse what it knows to solve new problems.}

^{†AB engages issuers where it believes the engagement is in the best interest of its clients.}

The views expressed herein do not constitute research, investment advice or trade recommendations, do not necessarily represent the views of all AB portfolio-management teams and are subject to change over time.

Learn more about AB’s approach to responsibility here.

In this bonus episode, Host Angie Dickson, President of the Inogen Alliance and EVP of Antea Group USA, speaks with Sofiane, a Senior EHS Consultant with Baden Consulting in Switzerland. Sofiane walks through the extraordinary remediation of a major hazardous waste site, one of the largest and most complex environmental cleanup projects in Swiss history. He explains how decades of contamination were safely excavated, contained, and transformed into a site that now serves both the environment and the surrounding community.

 

Listen now on:

Apple Podcasts

Spotify

YouTube

 

Time Stamps

00:45 The Long History of the Site: From Clay Extraction to Waste Disposal
04:05 Safely Removing 500,000+ Tons of Hazardous and Contaminated Material
05:40 Shared Responsibility: Local Authorities, Industry, and Federal Support
06:25 From Hazard to Habitat: Agriculture, Natural Reserves, and Regeneration
07:40 Core Lessons: Prevention, Collaboration, and Lifecycle Stewardship
08:20 Waste-to-Energy Insights: Why Reduction Still Comes Firs

 

Guest Quote

“The site is no longer a hazard. It is now a resource for the community and the environment. It shows that land contamination can be reversed if action is taken.” – Sofiane

As climate risks escalate across global coastlines, new ShippingWatch reporting reveals just how urgently port operators must act to safeguard infrastructure, trade flows, and coastal communities. The article – “DP World invests in climate protection to keep ports resilient” – highlights DP World’s significant investments to “climate-proof” its 60+ ports and terminals worldwide, underscoring an industrywide shift toward resilience and decarbonization.  

For the Americas — home to hurricane-exposed coastlines, rising sea levels, and densely interconnected trade routes — the implications are especially profound. 

DP World’s Resilience Strategy Reflects Rising Climate Threats 

The article cites a major risk assessment showing that nearly 90% of the world’s major ports are exposed to damaging climate risks, including storm surges, flooding, and extreme heat. With billions in infrastructure and trillions in trade at stake, inaction could lead to soaring repair costs and prolonged supply chain disruption.  

This reality aligns with what supply chain stakeholders across the Americas are already experiencing: climate volatility is now a structural operating condition. 

DP World’s global COO for Ports & Terminals, Tiemen Meester, explains that the company has conducted detailed climate modeling across more than 50 sites, evaluating sea-level rise, storm intensity, and heat impacts. While many DP World assets are inherently resilient by design, he emphasizes that proactive adaptation — such as strengthening quay walls, electrifying equipment, and deploying renewable energy — is essential for long-term operability.  

The Americas Lens: Why Climate Resilience Matters Even More Here 

The Americas face some of the most intense climate-driven disruptions: 

• Hurricanes and tropical storms continue to affect trade gateways from Mexico to the U.S. Gulf to the Caribbean.
• El Niño–related flooding and extreme heat have strained port operations in Peru, Ecuador, and Chile.
• Sea-level rise threatens coastal terminals across North America and South America. 

DP World’s regional investments directly address these escalating risks: 

• Peru (Callao): A US$66 million investment in electric cranes and EV infrastructure boosts both climate resilience and air quality.
• Canada: Shore power in Vancouver and Prince Rupert allows ships to shut off diesel engines while berthed — cutting emissions and reducing local pollution.
• Dominican Republic: Fully electric fleets and solar capacity strengthen operational continuity amid climate stress.
• Ecuador & Brazil: Nature-based solutions such as mangrove restoration and aquatic fauna monitoring create natural coastal buffers and protect biodiversity. 

Decarbonization Is Becoming a Resilience Strategy 

As highlighted in the ShippingWatch reporting, DP World is investing US$500 million over five years in decarbonization — including electrification, renewable energy, low-carbon fuels, process modernization, and digitalization. Already, 59% of all electricity across DP World terminals is renewable, with 28 terminals operating on 100% renewable power.  

In the Americas, this progress is accelerating: 

• Peru’s electric fleet has already eliminated more than 2,400 tons of CO₂ annually.
• Chile, Ecuador, Brazil, and Canada are expanding renewable power, electrified equipment, and zero-waste initiatives to fortify operational resilience. 

Why This Matters Now 

With global trade projected to double by 2050 and the Americas playing a growing role in nearshoring and regionalized manufacturing, the region’s ports must be prepared to operate under increasingly volatile conditions. 

ShippingWatch’s DP World profile underscores that port resilience is emerging as a top economic priority, not a distant sustainability aspiration. DP World’s strategy across the Americas demonstrates what proactive climate protection looks like — and why it is foundational to the future of competitive, reliable trade. 

Read the full ShippingWatch article here: “DP World invests in climate protection to keep ports resilient” 

• Grid-interactive building with microgrid, EV charging and battery storage reduces electricity costs and supports grid resilience
• Eaton highlights the strategies powering the next era of American energy infrastructure at the Reuters Energy LIVE 2025 event 

PITTSBURGH, December 9, 2025 /3BL/ – Intelligent power management company Eaton will deliver a clean energy microgrid for the new Manchester Public Library in Connecticut to support affordable, resilient and sustainable power. The library will be the first newly constructed building in the state to implement grid-interactive renewables, battery storage and electric vehicle (EV) charging – helping maximize energy savings and reduce strain on the local electric grid. Scheduled for completion in 2026, the project aims to achieve zero net energy (ZNE) ready status.

Using its Buildings as a Grid approach that enables flexible energy systems, Eaton is empowering the Town of Manchester to strategically balance energy production and consumption while enhancing grid flexibility. Eaton will synchronize the onsite renewables, energy storage and EV charging with local energy markets, allowing the library to optimize energy usage and enabling the utility to better manage peak demand and support the grid.

“The new Manchester Public Library showcases how smart energy management can reduce costs and demand on the grid while optimizing resilience and sustainability,” said Paul Ryan, vice president and general manager of energy transition at Eaton. “We’re confident our proven intelligent power management solutions and expertise will benefit the Town of Manchester and its residents for decades to come.”

Eaton will enable the library to leverage 370 kilowatts (kW) of solar photovoltaics (PV) and battery storage to generate carbon-friendly power and reduce electricity costs. The company is delivering electrical infrastructure, turnkey engineering services and return on investment (ROI) modeling for the project. With its microgrid control solution and grid-interactive xStorage^TM battery energy storage system (BESS), Eaton will help the library maximize onsite solar consumption and export excess electricity to support grid stability. Additionally, Eaton is leveraging its industry-first EV charging partnership with ChargePoint to provide vehicle charging infrastructure that helps intelligently reduce costs, effectively manage site power requirements and enhance reliability. 

“Our community overwhelmingly supports our investment in this state-of-the-art library as a beacon of sustainability, innovation and education,” said Steve Stephanou, town manager at the Town of Manchester. “Eaton’s forward-thinking solutions and strong relationships with the project team have been essential to turn our goal of building Connecticut’s first net-zero public library into reality.” 

The project is supported by federal tax credits, state and local funding, and incentives provided through the Energy Storage Solutions program. This program is overseen by the Public Utilities Regulatory Authority (PURA), is paid for by electric ratepayers, and is administered by the Connecticut Green Bank, Eversource, and the United Illuminating Company (UI). Learn more about how Eaton is helping electrify the grid-interactive buildings of the future.

Angie McMillin, president of Energy Solutions and Services at Eaton, will deliver a keynote focused on the strategies supporting quick onsite power delivery, energy resilience and sustainability during the Reuters Energy LIVE event in Houston on December 9. The session will spotlight the new Manchester Library project and how it is advancing affordable, reliable and sustainable power.

Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.

Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of nearly $25 billion in 2024, the company serves customers in more than 160 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.

Contact:

Regina Parundik 
+1.412.559.1614
ReginaParundik@eaton.com 

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EMERYVILLE, Calif., December 9, 2025 /3BL/ – SCS Standards and Assurance Systems is pleased to announce that draft version 2.0 of the SCS-007 Certification Standard for Sustainably Produced Gemstones, formerly known as the Certification Standard for Sustainability Rated Diamonds, is now available for public review.

The Standard was first introduced in 2020 to establish a uniform and credible basis for independently assessing and certifying the environmentally and socially responsible production and handling of gemstone-quality diamonds, and to support business and consumer-facing claims for such diamonds.

Draft version 2.0 of SCS-007 has been revised to add emeralds, rubies, and sapphires to the scope of the standard and replace requirements for mined diamonds with a recognition of the Initiative for Responsible Mining Assurance (IRMA) certification for mined gemstones within the scope of the standard. Proposed revisions additionally replace requirements for fingerprinting conformity testing with blockchain technology for gemstone traceability. Finally, the updated standard introduces Trailblazer categories for indicators that promote best practices, such as the use of 100% renewable electricity.

The public is welcome to comment on the proposed updates to the standard until January 30, 2026. To submit comments, please reach out to standards@scsstandards.org, or please visit Certification Standard for Sustainability Rated Diamonds | SCS Standards.

A webinar will be held to introduce the Standard and proposed changes at 10:00 AM PST on January 13, 2025. Registration is available here.

About SCS Standards and Assurance Systems

SCS Standards and Assurance Systems is an organization committed to the development of standards that advance the United Nations Sustainable Development Goals. Standards are developed in alignment with best practices and guidelines provided by internationally recognized bodies to ensure a robust, transparent, and collaborative approach. SCS Standards and Assurance Systems is the official standards development body for Scientific Certification Systems, Inc. For more information, visit www.SCSstandards.org.

Media Contact

Victoria Norman
Executive Director
Send an email

December 8, 2025 /3BL/ – Today, PSE&G and the PSEG Foundation announced $1.5 million in grants to over 25 local organizations that provide critical assistance to households facing economic hardship. The Community Relief Initiative reflects PSE&G’s and the PSEG Foundation’s ongoing dedication to affordability and community well-being.

The one-year initiative aims to provide critical support through a multifaceted approach that includes funding to Shares Nation (formerly NJ Shares) for energy assistance and housing relief, as well as partner organizations of Shares Nation and several foodbanks that are designed and equipped to operate on a wide scale as the backbone of the community food assistance system.

As part of its unwavering commitment to uplifting communities across New Jersey, PSE&G and the PSEG Foundation have invited nonprofit partners to a conference designed to deepen collaboration and spark fresh, practical insights.

“At PSE&G and the PSEG Foundation, we believe true community support goes beyond providing safe and reliable energy — it’s about building strong partnerships with organizations that understand local needs,” said President of the PSEG Foundation and Director Corporate Social Responsibility Calvin Ledford Jr. “During times of economic challenges and hardship, these collaborations allow us to deliver meaningful solutions that directly benefit families across New Jersey. We are deeply grateful for each of our partners and for the impact these initiatives will have in helping local communities access the critical resources needed to stay safe, healthy, and secure.”

Read the press release to learn more about the Community Relief Initiative.