Liberty Global plc (LBTYK): PESTLE Analysis [Nov-2025 Updated]

You're trying to navigate the complexity of Liberty Global plc (LBTYK), a European telecom giant that's more a collection of joint ventures than a simple company. Honestly, valuing it requires looking past the brand name and straight at the macro forces-Political, Economic, Social, Technological, Legal, and Environmental-that are shaping its future. We're talking about everything from EU merger scrutiny to the cost of capital hitting their infrastructure spend, even as they project a consolidated Adjusted Free Cash Flow (FCF) of around $1.6 billion for 2025. Here's the critical PESTLE breakdown you need to map near-term risks to clear, actionable opportunities.

Liberty Global plc (LBTYK) - PESTLE Analysis: Political factors

Continued regulatory scrutiny on telecom mergers and acquisitions (M&A) in the European Union (EU)

You need to watch the shifting winds on M&A in the European Union because the regulatory environment is at a critical inflection point. For years, the European Commission (EC) has been a tough gatekeeper, often blocking or imposing heavy remedies on deals that reduce the number of major operators from four to three in a national market. This scrutiny has directly impacted Liberty Global's ability to consolidate its position across Europe.

However, the tide is turning. As of late 2025, major telecom CEOs, including Liberty Global, are actively lobbying the EC to ease these strict merger rules. They argue that market fragmentation is stifling the massive investment needed for next-generation networks. The industry is pushing for a more holistic approach that weighs the benefits of scale-like greater investment and innovation-against the traditional competition concerns of price hikes.

A key indicator of this shift is the UK's Competition and Markets Authority (CMA) approval of the Vodafone Group and CK Hutchison Holdings merger in the UK, a 'four-to-three merger,' albeit with remedies. The EC is also reviewing its Merger Control guidelines in 2025, which could signal a structural change in how it assesses telecom consolidation.

Government pressure to accelerate national fiber and 5G rollout targets, often tied to subsidies

Governments across Europe are setting aggressive digital targets, which creates both a massive capital expenditure burden and a clear investment roadmap for companies like Liberty Global. The EU's 'Digital Decade' goal is universal access to Fiber-to-the-Home (FTTH) and 5G services with 100% coverage by 2030.

The current progress shows a gap, which translates to public funding opportunities. As of late 2024, only 70.5% of Europe had FTTH coverage, and the EU estimates an additional investment of up to at least EUR 200 billion is needed to ensure full gigabit coverage. Liberty Global is directly addressing this with its own capital. For example, the company has a EUR 10 billion network investment plan in the Benelux region, aiming to connect millions of households with ultrafast broadband by 2028.

You can see the government commitment in the numbers: EU Member States allocated over €2.4 billion in public funding to 5G roll-out from 2022-2024, with more planned for 2025-2027. Liberty Global's strategy of deploying advanced fiber and 5G networks means nearly 95% of its European footprint already has access to gigabit broadband speeds, positioning it well to capture these public-private partnership opportunities.

Shifting geopolitical tensions influencing supply chain security for network equipment

Geopolitical tensions are no longer a distant macro-issue; they are a direct operational risk, ranking as the fifth top risk for telco leaders in 2025. The primary concern is supply chain security, specifically the use of 'high-risk vendors' (HRVs) for critical network infrastructure, particularly 5G.

The political pressure from the US and the EU on member states to exclude certain Chinese manufacturers, like Huawei, directly affects procurement and deployment costs. For instance, Spain's decision to renew a 5G core network deal with Huawei until 2030 drew sharp rebukes from the US and EU, highlighting the tension between cost-efficiency and security. This creates a fragmented regulatory landscape across Europe.

Liberty Global must navigate this by diversifying its supply chain, which is costly and complex. The EU is responding with new legislation to bolster resilience, including the NIS2 Directive (Network and Information Systems Security) and the Cyber Resilience Act (CRA), which mandate stricter cybersecurity and supply chain integrity requirements for critical entities like telecom operators. This means higher compliance costs and a defintely longer procurement cycle for new equipment.

• Geopolitical tensions cited as a threat to growth by 22% of telco leaders in May 2025.
• New EU regulations (NIS2, CRA) require significant investment in network security and resilience.
• Vendor diversification away from HRVs increases capital expenditure and project complexity.

Potential for new EU-wide net neutrality or data sovereignty laws impacting service delivery

The debate over who pays for the massive network upgrades is the most significant regulatory risk and opportunity on the horizon. Telecom operators, including Liberty Global, have long argued that large content providers (hyperscalers) that generate the bulk of network traffic should contribute a 'fair share' to network costs.

This debate is central to the proposed Digital Networks Act (DNA), which the European Commission is expected to unveil in late 2025 or early 2026. The industry sees this as a chance to secure a new funding model, but digital rights groups and tech companies warn that any cost-sharing mechanism could undermine the core principle of net neutrality (Open Internet Regulation).

Here's the quick math: if the 'fair share' is enacted, it could unlock a new revenue stream for Liberty Global's infrastructure investments. If it fails, the company will have to shoulder the full cost of the EUR 200 billion investment gap needed for the EU's 2030 targets. Furthermore, the Court of Justice of the European Union (CJEU) reinforced net neutrality rules in July 2025, ruling against practices like combining 'unlimited use' of data with capped speeds (e.g., 1.5 Mbps for video streaming), which directly impacts how mobile subsidiaries like VodafoneZiggo structure their consumer tariffs.

Liberty Global plc (LBTYK) - PESTLE Analysis: Economic factors

Persistent high inflation across key markets (e.g., UK, Switzerland) pressuring operating costs and consumer spending.

You're facing a split economic picture across Liberty Global's core markets, which creates a complex cost and pricing environment. The United Kingdom, home to the Virgin Media O2 joint venture, is still dealing with persistent, elevated inflation, which directly pressures your operating costs.

For example, the UK's Consumer Price Index (CPI) inflation rate was 3.6% in October 2025, and is forecast to be around 3.2% to 3.5% for the fourth quarter of 2025. This forces up expenses, especially labor costs, with average earnings expected to rise to 4.2% by the end of Q4 2025. This is a headwind for the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin.

In stark contrast, Switzerland, where Liberty Global operates Sunrise, is grappling with extremely low inflation, with the rate easing to just 0.1% in October 2025, and the full-year 2025 forecast averaging around 0.2%. This low-inflation environment limits your ability to implement significant annual price increases (RPI/CPI-linked) on the consumer side, but it does ease pressure on local operating costs.

• UK CPI Inflation (Q4 2025 Forecast): 3.2% to 3.5%
• Switzerland CPI Inflation (2025 Forecast): 0.2%
• UK Average Earnings Growth (Q4 2025 Forecast): 4.2%

Interest rate hikes increasing the cost of capital for major infrastructure investment like fiber upgrades.

The cost of capital for Liberty Global's extensive infrastructure projects, particularly the fiber-to-the-home (FTTH) and 5G network rollouts, is highly sensitive to the prevailing interest rate environment. This is a huge factor for a capital-intensive business like telecommunications.

The UK market, through the VMO2 joint venture, is still operating under a relatively high-rate regime, with the Bank of England's base rate expected to be cut to 4.0% by the end of 2025. This high rate makes financing the projected £2.0 to £2.2 billion in Property and Equipment (P&E) additions for 2025 (excluding ROU additions) more expensive, increasing debt servicing costs and the hurdle rate for new projects.

The situation in Switzerland is fundamentally different and much more favorable for debt financing. The Swiss National Bank (SNB) cut its policy rate to 0.00% in June 2025, reflecting a move to combat deflationary risks and a strong Swiss Franc. This near-zero rate provides a significantly lower cost of capital for the Sunrise operations compared to the UK.

Liberty Global's 2025 consolidated Adjusted Free Cash Flow (FCF) is projected to be around $1.6 billion, reflecting capital intensity.

The company's overall financial health is often measured by its Adjusted Free Cash Flow (FCF) (cash flow from operations minus capital expenditures). Liberty Global's 2025 consolidated Adjusted FCF is projected to be around $1.6 billion, but this figure is highly dependent on the performance of its capital-intensive joint ventures and operating companies.

The capital intensity of the business is clear when you look at the component parts. The investment required for network upgrades means that some operating segments are generating negative or minimal FCF. For the first nine months of 2025, the consolidated Adjusted EBITDA less P&E Additions (a proxy for FCF before working capital) was $602.6 million, showing the sheer scale of capital expenditure eating into operating profits.

Here's the quick math on the 2025 FCF guidance breakdown for key OpCos (excluding corporate and other adjustments):

Currency volatility, especially the British Pound (GBP) and Swiss Franc (CHF), impacting reported U.S. Dollar (USD) earnings.

As a US-Dollar reporting company, Liberty Global faces significant translation risk due to the volatility of its primary operating currencies, the British Pound (GBP) and the Swiss Franc (CHF). Currency movements can materially impact reported USD earnings, even if local performance is strong.

The Swiss Franc, in particular, has seen a rapid appreciation against the US Dollar in 2025, driven by its safe-haven status amid global trade tensions and the SNB's low-rate policy. The USD/CHF exchange rate fell, with the Franc reaching 15-year highs, trading around 0.81562 in April 2025 and breaching the 0.80 level in September 2025. A stronger CHF means local Swiss earnings (Sunrise) translate into a higher USD value, which is a translation benefit.

The GBP has also experienced volatility. While a weaker GBP against the USD would typically be a headwind, the overall global FX market volatility in 2025 necessitates robust hedging strategies (foreign exchange risk management) to protect the translated value of the substantial cash flows from the VMO2 joint venture.

Liberty Global plc (LBTYK) - PESTLE Analysis: Social factors

You're operating in a market where consumer behavior is shifting faster than ever, so understanding these social currents is defintely the key to sustained growth. The big picture is simple: people want speed, simplicity, and trust. Liberty Global's success hinges on converting these wants into tangible, bundled services and robust data security.

Here's the quick math: if your fixed-mobile convergence strategy doesn't capture the growing demand for simplicity, you leave significant revenue on the table. The social trend toward 'always-on' digital life is a massive tailwind, but it comes with a non-negotiable demand for data integrity.

Growing consumer demand for converged services (fixed-mobile bundles) driving joint venture strategy (e.g., Virgin Media O2).

The days of single-service purchases are fading; consumers want one bill and one provider for their fixed broadband, mobile, and TV. This demand for simplicity and value is the core driver behind Liberty Global's joint venture with Telefónica, creating Virgin Media O2 in the UK. This strategy directly addresses the social preference for bundled convenience.

As of the first half of 2025, the Virgin Media O2 joint venture has successfully grown its converged customer base (those taking both fixed and mobile services). This converged base is a critical metric because these customers exhibit lower churn (customer turnover) rates-often 15% to 20% lower than single-service customers. The total number of converged customers is a testament to this strategy, recently crossing the 3.8 million mark, representing a significant portion of the total customer relationships across the venture's footprint.

The push for 'quad-play' (broadband, mobile, TV, and fixed-line phone) is not just a commercial tactic; it's a social expectation in mature European markets. The integration of the two networks allows for a seamless experience, which is what the modern, digitally-savvy consumer demands.

Increased remote work and digital consumption accelerating the need for high-speed, reliable broadband.

The pandemic-era shift to remote and hybrid work has permanently reset the baseline for broadband needs. Your customers are no longer just streaming; they are running simultaneous high-definition video conferences, uploading large files, and using cloud-based enterprise applications. This social change has turned high-speed broadband from a luxury into a utility.

Data consumption continues its relentless climb. In Liberty Global's key European markets, average household data usage is projected to see a year-over-year increase of approximately 25% in 2025. This acceleration requires continuous capital expenditure (CapEx) on network upgrades, such as the ongoing fiber-to-the-home (FTTH) rollout, to maintain service quality and competitive edge. If you don't offer gigabit speeds, you lose the high-value customer.

• Meet demand: Upgrade network capacity constantly.
• Prioritize reliability: Remote workers cannot tolerate outages.
• Market speed: Focus marketing on symmetrical upload/download speeds.

Public concern over data privacy and security, influencing consumer trust and service adoption.

Trust is the new currency in the digital economy. High-profile data breaches across various industries have made consumers acutely aware of the risks associated with sharing personal data. For a telecommunications company that acts as a gatekeeper to all digital traffic, public concern over data privacy and security is a major social factor that directly impacts service adoption and brand loyalty.

Surveys in Europe indicate that over 80% of consumers express significant concern about how companies handle their personal data. This concern translates into a preference for providers with a demonstrable track record of security compliance, often measured by adherence to strict regulations like the General Data Protection Regulation (GDPR). A single security incident can erode years of brand building and lead to substantial regulatory fines, which can reach up to €20 million or 4% of annual global turnover under GDPR.

Here is a snapshot of the critical security and trust metrics:

Demographic shifts in Europe requiring tailored content and service packages for aging and diverse populations.

Europe is an aging continent. The median age is rising, and the proportion of the population aged 65 and over is projected to exceed 20% in many of Liberty Global's operating markets, such as Switzerland and Belgium. This demographic shift requires a move away from a one-size-fits-all service model.

Older populations have different needs: simpler user interfaces, more emphasis on reliable voice and emergency services, and content that caters to their interests. Conversely, the increasing diversity across European cities requires content packages that cater to specific linguistic and cultural groups. The social expectation is personalization, not standardization.

Liberty Global must tailor its offerings to these segments. For the aging population, this means investing in user experience (UX) design for TV platforms that prioritizes legibility and ease of navigation. For diverse communities, this involves securing rights to international content channels. This segmentation is a necessary cost of doing business to maintain market share in a mature, demographically complex region.

Liberty Global plc (LBTYK) - PESTLE Analysis: Technological factors

Rapid expansion of Fiber-to-the-Home (FTTH) networks challenging legacy cable infrastructure in markets like the UK.

You're seeing the core challenge for Liberty Global right now: the race to replace Hybrid Fibre Coaxial (HFC) cable with pure Fiber-to-the-Home (FTTH). This isn't just an upgrade; it's a defensive move against rivals like Openreach and a necessity for future-proofing the business.

In the UK, the Virgin Media O2 (VM O2) joint venture is aggressively pursuing this, aiming to launch its NetCo (a separate fixed-line network business) in the first half of 2025. This NetCo will open the existing network-which covers over 16 million premises-to wholesale customers, a huge shift from its historically closed model. The combined FTTP footprint of VM O2 and its fiber-build joint venture, nexfibre, reached approximately 6.4 million premises passed in early 2025, a strong base that is still rapidly growing toward a target of up to 23 million premises by 2028.

This massive infrastructure overhaul requires heavy capital expenditure (CapEx). For instance, the Benelux region alone is seeing EUR 10 billion in fiber investments, and in Belgium, the Wyre joint venture is adding 375,000 more homes passed by the end of 2025, backed by a five-year €500 million debt facility. That's a serious commitment to network modernization.

The 5G standalone (SA) network deployment is maturing, enabling new enterprise services and fixed wireless access (FWA) competition.

The shift to 5G Standalone (5G SA) is crucial because it unlocks the low-latency, high-reliability services that enterprises and Fixed Wireless Access (FWA) depend on. FWA, in particular, is a direct, low-cost competitor to Liberty Global's fixed-line broadband, so they must be on the cutting edge.

A concrete example of this maturation is Liberty Costa Rica's deployment of the first 5G SA network in Central America in July 2025, in partnership with Ericsson. This deployment covers over 1,400 sites and is set to benefit more than 3.7 million subscribers, significantly boosting their FWA capabilities. To get this off the ground, Liberty Costa Rica spent US$16.2 million on 5G spectrum blocks earlier in 2025. The enterprise opportunity here is huge-5G SA enables advanced applications like network slicing for specific industry use cases, moving the business beyond just consumer connectivity.

Increased use of Artificial Intelligence (AI) for network optimization and customer service automation.

AI is no longer a buzzword; it's a direct lever for operating expense (OpEx) reduction and customer retention. Liberty Global is defintely leaning into this, anticipating a total of $200 million to $300 million in annual savings and revenue uplift from AI across its operating companies for the 2025 fiscal year. Here's the quick math: 70% of that potential $300 million benefit is expected to come from pure cost savings.

The AI focus is on three core areas:

• Network Optimization: In Switzerland, AI is already reducing mobile network electricity consumption by 10%.
• Customer Service: The 'Agent Assist' platform is being used by over 200 agents at VodafoneZiggo to provide real-time answers and improve efficiency.
• Churn Reduction: AI tools have led to 'materially better retention' at VM O2, driving growth in fixed-line average revenue per user (ARPU).

Plus, the company is investing in its people, enabling about 500 employees with generative AI tools like Microsoft Co-Pilot to improve internal efficiency.

Obsolescence risk for older set-top boxes and network hardware requiring significant capital expenditure.

The constant cycle of hardware replacement presents a major CapEx risk. Older set-top boxes (STBs) and network gear become obsolete quickly, driven by both consumer demand for 4K/IP video and new regulatory mandates.

The obsolescence risk is heightened by new regulations, such as the UK's Product Security and Telecommunications Infrastructure Act, which requires manufacturers to ensure compliance for new devices by August 1, 2025. This effectively sets a hard deadline for replacing older, non-compliant customer premises equipment (CPE).

Liberty Global manages this risk through two strategies:

1. New Hardware Rollout: Deploying a new all-IP mini 4K capable set-top box across its joint ventures, which boasts lower power consumption and is made from recycled plastic.
2. Circularity Model: Leveraging its company, Liberty Blume, and its 'Re-think' business to repurpose and resell unused technology, turning a potential CapEx hit into a source of revenue and supporting more sustainable network upgrades globally.

This circularity focus helps mitigate the financial impact of the inevitable technology refresh cycle. What this estimate hides is the potential for significant one-off impairment charges if the decommissioning of legacy HFC equipment is accelerated faster than planned.

Liberty Global plc (LBTYK) - PESTLE Analysis: Legal factors

Ongoing regulatory reviews of wholesale access pricing and network sharing agreements in the UK and Belgium

The regulatory environment for wholesale access and network cooperation remains a primary legal and financial risk for Liberty Global's core European operations. In the UK, the Office of Communications (Ofcom) continues its Telecoms Access Review (TAR) for the 2026-2031 period, which directly impacts Virgin Media O2 (VMO2) and its fiber joint venture, nexfibre.

The key regulatory uncertainty centers on wholesale local access (WLA) pricing remedies. Ofcom is consulting on an alternative to statutory charge controls for Openreach's 80/20 product, potentially relying on commercial contracts instead. This shift could reduce regulatory certainty, impacting the long-term business case for VMO2's network expansion. In Belgium, Telenet's crucial network collaboration with Proximus and Fluvius, forming the fiber joint venture Wyre, is currently undergoing a market test by the authorities. This is a significant step toward finalizing the agreement, which aims to rationalize the fiber market in Flanders and is essential for Telenet's competitive position.

Here is the quick math on the regulatory landscape in the UK:

Compliance burdens from the EU's Digital Markets Act (DMA) and Digital Services Act (DSA) affecting platform operations

The European Union's new digital legislation is creating a substantial, non-telecom-specific compliance burden for Liberty Global, particularly for its video and content aggregation platforms. The Digital Markets Act (DMA) aims to ensure fair competition for 'gatekeepers,' while the Digital Services Act (DSA) imposes strict rules on content moderation and transparency for online platforms.

For the Technology, Media, and Telecom (TMT) sector, the increasing complexity of compliance requirements is negatively impacting 81% of companies, according to a 2025 survey. To give you a sense of the scale, general estimates for U.S. firms operating in the EU suggest that annual compliance costs related to the DMA are around $1 billion, and the DSA is about $750 million. Liberty Global, as a major U.S.-based entity with significant EU operations, faces a slice of this overall industry cost. This isn't just a legal headache; it's a major operational expense.

New spectrum auction rules and license renewals creating significant financial outlays and operational uncertainty

Securing and managing mobile spectrum is one of the largest capital outlays in the telecom business, and 2025 saw a major financial commitment from Liberty Global's UK joint venture. Virgin Media O2 (VMO2) announced in June 2025 an agreement to acquire 78.8 megahertz of spectrum from Vodafone UK for an investment of £343 million, pending Ofcom approval. This deal is crucial for VMO2 to boost its total mobile spectrum share to approximately 30% of the UK market, ensuring it remains a scaled mobile network operator.

Still, other spectrum-related costs remain contentious. VMO2 argues that it and other operators are overpaying for existing Annual License Fees (ALFs) for 900, 1800, and 2100 MHz spectrum. They estimate this overpayment could total approximately £30 million over 2025 compared to the revised, lower fees Ofcom is consulting on.

• VMO2 Spectrum Acquisition (2025): £343 million for 78.8 MHz from Vodafone UK.
• Estimated UK ALF Overpayment (2025): approximately £30 million.

Spectrum is expensive, but it's the lifeblood of a mobile business.

Data protection regulation (GDPR) enforcement leading to higher compliance costs and potential fines

The General Data Protection Regulation (GDPR) continues to pose a material financial risk, especially from legacy issues. By January 2025, the cumulative total of GDPR fines across Europe had reached approximately €5.88 billion, demonstrating the high-stakes enforcement environment.

For Liberty Global, the most notable ongoing risk relates to the 2020 Virgin Media data breach, which exposed the personal information of approximately 900,000 customers. Although the UK Information Commissioner's Office (ICO) has not yet issued a final fine, legal experts have previously suggested the company could face a penalty toward the maximum allowed under GDPR at the time, which was 4% of global turnover or €20 million, whichever is higher. The risk is compounded by ongoing group litigation claims from affected customers, which represent a separate, potentially significant financial liability beyond any regulatory fine. This threat mandates continuous, high-level investment in data privacy infrastructure and training to avoid future breaches and to mitigate the final penalty for the past one.

Liberty Global plc (LBTYK) - PESTLE Analysis: Environmental factors

Increasing pressure from investors and regulators to meet net-zero carbon emission targets by 2030 or 2040.

The regulatory and investment climate is forcing telecommunications firms to accelerate their decarbonization plans, and Liberty Global plc is right in the middle of it. The company is a founding member of the European Green Digital Coalition, which commits members to climate neutrality no later than 2040. This is a strong signal to investors that environmental, social, and governance (ESG) performance is now a core business metric, not just a side project. To be fair, this pressure is also an opportunity to drive efficiency.

The company has already made significant progress against its Science Based Targets initiative (SBTi) approved goals. As of the most recent reporting, the firm has a 3-year track record of connecting employee remuneration to ESG performance, which shows how serious the commitment is. They have also committed to a Scope 1 and 2 net-zero ambition by 2030.

Focus on reducing energy consumption from network operations, especially with power-hungry 5G and data centers.

The core challenge for any telecom is the exponential growth in data traffic, which puts immense pressure on network energy consumption. Global internet traffic has surged 25-fold since 2010, and mobile data is projected to triple between 2023 and 2028. The industry now accounts for up to 1.5% of global electricity consumption. Liberty Global is tackling this head-on by focusing on smart energy and network optimization.

The shift to fiber and 5G networks, while necessary for speed, is energy-intensive. But the good news is that AI is a powerful tool here. AI-driven initiatives are already achieving up to 40% energy savings in network operations for some operators, and Liberty Global's own research suggests that using AI to automate network operations could reduce total network energy consumption by around 10% to 15%. This is the kind of efficiency gain that changes the capital expenditure (CapEx) equation.

Waste reduction mandates for electronic equipment (e-waste) and network construction materials.

E-waste is a massive, growing liability. In 2022 alone, the world discarded more than five billion mobile phones, which is a staggering five billion kilograms of e-waste. For Liberty Global, this means a focus on the circular economy for customer premises equipment (CPE) like modems and set-top boxes, plus network construction materials.

The company has made real, measurable progress on this front.

• Refurbished over 600,000+ devices for a second life.
• New entertainment boxes are made from 100% recycled plastics.
• Conducted its first-ever Life Cycle Assessment (LCA) for the Mini TV Box.

Implementing AI-enhanced circular economy practices is a key strategic recommendation to extend equipment lifespans by as much as 70%, which would dramatically reduce the need for new raw materials and cut down on waste. Honesty, that is a huge opportunity to defintely lower costs and improve their environmental profile.

Liberty Global has targeted a 50% reduction in Scope 1 and 2 emissions by 2030, requiring significant operational shifts.

The target of a 50% reduction in absolute Scope 1 and 2 emissions by 2030, from a 2019 baseline, is a hard, Science Based Target initiative (SBTi) approved goal. This goal is the engine driving their operational shifts. The most recent data shows they are already at a 45% decrease (market-based) as of their latest reporting, which is a fantastic pace. This means the bulk of the heavy lifting-like switching to 96% renewable electricity-has already been done.

The remaining 5% to the 50% goal, and the push toward net-zero by 2030, will come from tackling the most complex and expensive areas: fleet electrification and deep energy efficiency in their technical sites and data centers. Over 90% of their emissions are indirect (Scope 2) from purchased electricity, so maintaining that high renewable energy procurement is crucial. The next big action is for the Operations team to fully integrate AI-driven network optimization by Q2 2026 to capture the remaining 10% to 15% energy savings.