Constraint is the new competitive advantage

The organizations pulling ahead have made energy security, materials resilience and operational flexibility a strategic priority. Here is how IBM helps.

Two workers at a power plant

The conditions
reshaping growth

Energy, materials and market access power every growth plan. All three are under more strain than at any point in the last two decades. The technologies organizations are counting on to drive the next wave of growth are accelerating that strain.

Energy access

AI infrastructure, electrification, and semiconductor manufacturing are all drawing from the same grid faster than utilities can expand to meet them. Energy is a strategic variable that shapes where and how a company can grow. 

See how energy access shifts
Materials access

Rare earths, lithium and copper are concentrated in a handful of places and claimed by every growth sector at once. Permitting a new source can take ten to twenty years. Supply will not catch up to demand without a plan for circularity. 

See how materials access shifts
Market access

Rules on energy, emissions, water, supply chains and AI governance are expanding across major markets. Often faster than most compliance teams can track them by hand. The organizations keeping pace have built compliance into how they run. 

See how market access shifts

Constraint, handled well, is a competitive advantage

Companies that treat energy, materials and market access as design questions are outperforming the ones that don’t. IBM’s Institute for Business Value found that companies who build sustainability into how they run, not just how they report, are 52% more likely to beat peers on profitability and grow revenue 16% faster. The ones pulling ahead aren’t waiting for conditions to improve. They’re building around them now.

64%
of organizations are deploying generative AI
1/3
have made meaningful progress managing AI’s environmental impact
Business people having a meeting about business plan while sitting and looking at laptop in office setting

Efficiency and trust built from the chip up

Building around these constraints takes infrastructure that can hold energy, materials, and market access together — not solve them one at a time. IBM works across the whole AI stack, from chip-level research through systems, cloud, models, and applications, taking on all three simultaneously.

Solving one constraint in isolation risks creating new exposure in the others — optimizing energy without addressing materials risk, or tightening compliance without governing AI, trades one vulnerability for another. IBM’s integrated position is designed to close all three at once, backed by trust and governance credentials that matter most where the cost of a mistake is highest.

IBM designs its own processors and accelerators for IBM Z, LinuxONE, and IBM Power. Purpose-built systems where energy efficiency is a design requirement. IBM Z has increased total capacity per kilowatt by more than 100 times since its first generation. Source: IBM Redbooks. IBM z17 Technical Introduction.

Hands holding circuit boards and chip components beside server rack blueprints and a Z16 system enclosure

Misplaced workloads waste energy, inflate cloud spend, and underperform. IBM's hybrid by design approach puts the right workloads on the right systems — on-premises, cloud, or edge — and keeps them there. IBM Turbonomic and Red Hat OpenShift (link resides outside of ibm.com) automate those placement decisions continuously, optimizing performance, cost and energy consumption simultaneously without manual intervention.

Two colleagues working together with a tablet in warehouse setting

IBM is ranked first in the Stanford AI Foundation Model Transparency Index (link resides outside of ibm.com) with a score of 95, up from tenth place the year before. IBM is named a Leader in the IDC MarketScape for Unified AI Governance Platforms, the Forrester Wave for AI Governance Solutions, and the Gartner Magic Quadrant for Governance, Risk and Compliance Tools.

Two colleagues working together with laptop in a modern office lounge environment

IBM's approach to Responsible Technology is guided by enterprise-wide governance that helps embed trust, transparency, and accountability across how IBM designs, develops and deploys AI. IBM Consulting's AI governance practice brings that discipline to client engagements, helping organizations meet the demands of the most regulated industries in the world.

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Energy access

Energy demand is putting pressure on supply. AI infrastructure, electrification, and manufacturing are all pulling from the same grid at the same time, and most utilities cannot expand fast enough to keep up with all three demands running at once.

Organizations that redesign how they consume energy, rather than just how much they buy, are turning that pressure into a lasting edge. An IDC study sponsored by IBM found that nine surveyed companies reduced unplanned downtime by an average of 47% after adopting IBM Maximo. IBM Research is pushing further at the grid frontier.

Citi logo
Citi cuts energy use by 75% with LinuxONE

Citi consolidated workloads onto IBM LinuxONE and cut energy consumption by 75%, reclaiming half of its physical data center footprint in the process, all without giving up any of the performance its trading desks depend on to run each single trading day. 

Read the full Citi story here
NESO logo
NESO balances the UK grid, minute by minute

NESO uses an IBM-developed platform to balance grid supply and demand minute by minute across the country, cutting reliance on gas backup and making fuller use of the battery storage that was already sitting on the network, largely going unused before now. 

Read the full NESO story here
Georgia Tech logo
Georgia Tech balances load against solar

Georgia Tech used IBM AI agents to balance energy loads against live solar conditions and shifting grid demand in real time, cutting peak energy costs by 18% without adding a single new watt of generation capacity to its campus footprint, that same year. 

Read the Georgia Tech story
Downer logo
Downer Group keeps its trains running on time

Downer Group improved train fleet reliability by 51% using IBM predictive maintenance analytics fed by near real-time sensor data, catching wear before it becomes downtime and keeping the energy spent on repairs to a bare minimum each operating month. 

Read the Downer Group story

Materials access

Materials regulation is accelerating on every front. PFAS restrictions, critical minerals sourcing rules, and supply chain transparency mandates are all expanding across major markets at once, and most sourcing teams are still tracking it by hand, in spreadsheets.

When supply chain data flows through one connected system, procurement teams see risk before it becomes a shortage. AI speeds up materials analysis, sharpens supplier risk scoring, and monitors continuously, without someone chasing spreadsheets every quarter.

Businesswoman working on tablet in modern office
Ikano Group turns reporting into strategy

Ikano Group streamlined more than 15,000 types of supply chain data using IBM Consulting and IBM Envizi, turning what used to be a reporting burden into a strategic operational asset its leadership now checks every quarter, not just once a year at audit time. 

Read the Ikano Group story
Close-up of the Sun showing bright solar flares and glowing plasma against a dark background
IBM and NASA build a model for solar storms

IBM and NASA’s Surya foundation model improved solar flare classification accuracy by 16%, helping organizations anticipate disruptions to GPS, satellite communications, and power grids before they happen. Solar storms can take down the same infrastructure that supply chains depend on to move, track, and verify materials in real time. Anticipating them is a practical dimension of supply chain resilience, not just an atmospheric science problem.

Read the Surya announcement
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End-of-life equipment resold, reused, or recycled — at global scale

In 2025, only 0.55% of IBM’s end-of-life products went to landfill. More than 98% were resold, reused, or recycled through IBM Global Asset Recovery Services, working across 67 countries and handling equipment most companies would simply throw away. 

Learn about IBM GARS today
Warehouse manager looking over reports on tablet
IBM cuts chemical review time by more than four times

IBM Safer Materials Advisor reduced initial chemical review time by more than four times, helping engineers identify and replace harmful chemicals, including PFAS, much earlier in a product’s design instead of after it has already shipped to customers around the world.

Read the research summary

Market access

Market access now depends on regulatory readiness. Reporting frameworks covering energy, emissions, water, and supply chain transparency are expanding across major markets, and AI governance has become a procurement requirement in regulated industries.

Organizations that generate compliance output as a byproduct of running the business are spending less, moving faster, and reaching markets that others cannot. IBM offers a layered approach to compliance and AI governance, from model monitoring through to sovereign deployment.

Aerial view of a Water Treatment Plant
Water Corporation saves 1,500 hours a year

Water Corporation saved 1,500 hours of manual administration annually after automating infrastructure support tasks with IBM Consulting and IBM watsonx Code Assistant, freeing its engineers to spend that time out on the network instead of on paperwork. 

Read the Water Corp story
Atlanta skyline with the letters “ATL” overlaid across the cityscape
Atlanta lifts its bond rating with ISO 55001

IBM is helping Atlanta become one of only three US cities with multiple ISO 55001 certified entities, a distinction that has already improved its insurance ratings and bond rates, saving the city real money on every infrastructure project still ahead. 

Read the full Atlanta story
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IBM governs its own AI with watsonx tools

IBM reduced data clearance request processing time for third-party data by 58% using watsonx.governance to govern its own AI deployments, proving out the same tool it sells to clients on its own infrastructure first, before selling it to anyone else. 

Learn about watsonx.governance
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Banco do Brasil governs AI across its entire lifecycle

Banco do Brasil, the oldest bank in Latin America, partnered with EY and IBM to build an AI governance model using watsonx.governance — automating oversight across the full AI lifecycle and meeting regulatory scrutiny without slowing deployment down.

Read the Banco do Brasil story

Already proven at scale

IBM applies the same discipline to its own operations that it builds for clients, using every layer of the stack to secure energy, materials, and market access at a global scale. IBM does not sell what it has not already run. The results are documented across energy management, emissions reporting, and AI-powered client operations.

64%

IBM Turbonomic, running on Red Hat OpenShift, takes 45,000 automated resourcing actions per month across IBM compute infrastructure, reducing CPU requests by 64% and cumulative memory limits by 3.8 TB, freeing that capacity for additional workloads without new hardware.

Read the IBM CIO Organization case study
6.5k

Envizi collects data from more than 6,500 utility bills IBM receives globally each year across 600-plus locations, summarizing total energy consumption, cost, and renewable electricity purchases, and calculating GHG emissions to support sustainability reporting and track progress toward greenhouse gas reduction and renewable energy goals.

Read the IBM GRE case study
Days to seconds

IBM watsonx Orchestrate powers IBM’s AskSustainability agent, which unified 50 data sources into a single conversational interface, cut response times from days to seconds and influenced USD 50 million in sales pipeline in its first four months.

Read the AskSustainability story

Quantum computing and the next class of problems

Solving today’s constraints is only part of the work. IBM is also exploring what comes after — where quantum computing changes what’s possible, starting with the problems classical scale can’t solve.

Explore IBM Quantum today

From complex variables to practical breakthroughs

Quantum computing does not replace classical infrastructure. IBM's quantum-centric supercomputing approach combines quantum computing with powerful high-performance computing and AI infrastructure. Chemistry, materials science, and complex optimization are among the most promising domains approaching quantum advantage — the point at which quantum computing is faster, more accurate, or more cost-effective than classical methods alone.

Quantum's connection to the three constraints discussed above is under active exploration. Exploring questions like:

  • How do you design a catalyst that makes fertilizer production less energy intensive?
  • How do you model chemistry well enough to build batteries that last longer and store more energy?
  • How do you improve a grid with thousands of variables shifting in real time?

These are areas IBM Quantum is exploring with clients and partners across energy, manufacturing, and automotive. The Quantum Computing for Sustainability Working Group, led by IBM researchers and experts in industry and academia across the globe, is pursuing the same open questions.

Event attendees inspecting IBM's Quantum chandelier on display at Think 2026
Take the next step

Energy, materials and market access aren’t easing up. The organizations building around those constraints, will lead the next decade. IBM knows the way forward.

  1. Let’s build it together