Synergistic Governance of Digitalization and Low-Carbon Development: How Does Green Data Center Policy Drive Corporate Sustainability?

Abstract

This study asks whether, and through which firm-level channels, the green data center (GDC) pilot improves corporate sustainability, and it aims to quantify the policy effect and identify its transmission pathways. Under the dual shift in digital transformation and low-carbon transition, the energy demand and emissions generated by data centers have become important constraints on the sustainability performance of firms. This study regards the 2015 “National Green Data Center Pilot Work Plan” as a quasi-experimental policy shock. In terms of methods, using panel observations of Chinese A-share companies listed in Shanghai or Shenzhen during 2010–2024, a difference-in-differences (DID) strategy is employed to estimate the effect of GDC policy and to identify its transmission pathways for corporate sustainability. In terms of results, the empirical estimates indicate that the GDC pilot improves corporate sustainability, and the effect is robust to fixed-effects specifications, an instrumental-variable strategy, propensity-score matching, and a placebo test. Mechanism tests show that the pilot works through three channels: greater green innovation output and technical value, reduced financing frictions, and enhanced green governance capacity. Heterogeneity tests further show that the effect is stronger among firms with a higher level of digital transformation, a larger share of skilled technical personnel, stronger internal control, and greater executive green awareness, and that it is clearer where regional environmental regulation is stricter and market competition is more intense. In terms of conclusions, by integrating institutional pressure theory with the resource-based view, this study explains how the GDC pilot is translated into a firm-level sustainability advantage, and it offers evidence for refining GDC policy design and advancing the coordinated digital and green transformation of enterprises. The novelty of the study lies in providing firm-level causal evidence within a unified “pressure-to-capability” framework, in opening the three transmission channels, and in specifying the technological, organizational, and environmental conditions under which the effect is stronger.