Cloud technologies have brought comfort and scalability to our businesses, but how well do they bear the burden of being environmentally sustainable?
2% of current energy consumption in the United States serves data centers. It could be worse, but remember: data centers are always expanding as demand increases. It is our responsibility, as leaders of our organizations, to be aware of our energy consumption and how our partners view sustainability as a goal.
The location of data centers plays a vital role in their overall environmental impact. Some regions rely heavily on fossil fuels for electricity production, while others prioritize renewable energy sources such as solar or wind energy. Investing in data centers powered by clean energy can significantly reduce the carbon footprint associated with cloud services.
Another point to keep in mind is that as hardware becomes obsolete (which happens faster than ever), we see constant updates and, as a consequence, an increase in electronic waste. Old devices are replaced with newer models. For example, GPUs used for AI technologies are replaced all the time as vendors develop new products for the market.
Proper management of e-waste is crucial to minimizing environmental damage caused by toxic materials found in electronics. Do we know how our business partners handle their disposal operations? Or do we assume that just because they are tech giants, they are doing their job? The cloud is a wonderful technology, but it does not relieve us of our responsibility towards the environment and future generations.
From data centers to carbon footprints: understanding the connection
In today's digital landscape, understanding cloud computing is crucial as data centers have become the backbone of this technology and software development. These massive facilities house thousands of servers that power our online activities, from storing data to running applications. Data centers are famous for their high energy consumption. They require a constant supply of electricity to keep the servers running smoothly and maintain ideal temperature conditions. This continuous demand for energy results in substantial carbon emissions, contributing to climate change.
To prevent overheating, data centers rely on sophisticated cooling systems that consume additional energy. In fact, it is estimated that cooling alone can account for up to 40% of a data center's total energy usage.
Energy-efficient cooling solutions, such as liquid cooling or advanced airflow management, can significantly reduce this environmental impact. But the problem is not that we cannot compensate now, but rather what will happen in the future. Cloud computing as a market will continue to grow for at least the next decade, with an expected compound annual growth rate (CAGR) of 14.1% from 2023 to 2030 .
If this trend continues, by the end of the decade, cloud services could consume up to 8% of the world's energy . Therefore, the expansion of the cloud industry must be accompanied by the development of new technologies that mitigate the environmental impact of all this processing power. New, environmentally conscious refrigeration solutions are the first step, but they cannot be the only strategy.
Consider, for example, virtualization technology —a single server can run multiple virtual machines, maximizing resource utilization and reducing the need for additional hardware and power. Consolidating servers through virtualization is a solid step, especially for small-scale businesses, to minimize their carbon footprint by decreasing the number of physical machines needed in a data center. The math is simple: fewer machines equal less heat.
Another effective way to mitigate the environmental impact of data centers is by transitioning to renewable energy sources, such as solar or wind energy. Many forward-thinking companies are investing in renewable energy projects or establishing partnerships with suppliers that prioritize the generation of clean energy for their facilities.
Unfortunately, solar and wind energy pale in comparison to the amount of energy we get from carbon and fossil fuels. For example, solar energy is not viable in all parts of the globe due to the Earth's position in relation to the sun, and wind-powered solutions depend on specific weather conditions.
We are not going to end fossil fuels anytime soon, but there is a balance that can and must be achieved.
In addition to the adoption of renewable energy, green building design principles can also play a crucial role in reducing the carbon footprints associated with data centers. And I'm not talking about well-known sustainable features like efficient insulation, daylighting systems, and smart HVAC. Oh no, we're talking about entering science fiction territory.
In 2018, Microsoft submerged a data center for testing purposes. Two years later, the container was recovered and, beneath all the algae and barnacles, was a perfectly functional system. Unfortunately, Project Natick wasn't as popular as we would have liked. At the time, the media was worried about this little thing called COVID-19.
The results were quite promising, proving that underwater solutions could significantly reduce the need for refrigeration solutions. Of course, it's still too early to tell; there are still many unknowns. But hey, it's a first step.
Finally, proper lifecycle management of data center equipment is essential to minimize electronic waste and its environmental impact. Implementing responsible disposal practices, including recycling or refurbishing old servers and other hardware components, can help reduce the carbon footprint associated with e-waste.
Comparing the Big Three
The metaphor “data is the new oil” was originally coined as a way to denote how important data would become in the 21st century. Unfortunately, it is also an apt analogy when it comes to the impact that data processing has on the environment. Remember that Bitcoin craze a few years ago? It turns out that Bitcoin mining consumed more energy than Argentina . I'll let that sink in for a moment. Cultivating digital currency consumes more energy than a population of 46,044,703 inhabitants.
One of the biggest problems we have when we talk about green technologies is how to actually measure them. Different technology stacks have different requirements, and the carbon footprint is a composite of several factors, including energy usage, waste treatment, business partners, and more.
An approach proposed by Jonathan Koomey, one of the leading experts in the field, suggests evaluating the ecology of a data center based on three aspects: infrastructure efficiency, server efficiency and the origin of its electricity.
Three technology giants – Amazon Web Services (AWS), Google Cloud and Microsoft Azure – dominate the cloud computing industry, offering multiple “hyperscale” server farms that serve as virtual homes for vast amounts of the world's data. Its environmental footprint is enormous (to say the least) and any move towards decarbonization on its part could be a significant contribution to global emissions reductions.
The Big Three have committed to decarbonizing their data centers, relying heavily on renewable energy credits (RECs) to balance their carbon footprints. RECs represent green energy generated by public services and help these companies maintain the façade of being 100% powered by renewable energy, even when connected to fossil fuel-based grids.
But, as always, the devil is in the details. RECs come in many flavors , and the relationship between RECs and fossil fuels is tenuous at best. Let's say you buy 1 megawatt of renewable energy. How does this offset the harm your business partner may be causing to people who live near a power plant? How do we calculate pollution caused by oil extraction? Not only in terms of carbon emissions, but also in terms of oil extraction procedures and the consequences this has on the soil and the surrounding area.
This is a complicated subject, and forgive me if I sound a little biased, but RECs sometimes seem to pay someone to sweep the dust under the rug. On paper, you are 100% renewable, but in reality you still pollute the environment.
An analysis of the Big Three's individual efforts offers a nuanced perspective on their progress toward decarbonization. Google Cloud, despite having the smallest market share, claims to have achieved 100% renewable energy usage in its operations since 2017. Its efforts include large-scale renewable energy purchases, data center optimization using machine learning, and leadership of renewable projects to increase grid resources. . However, Google's commitment to greening its data centers has not excluded partnerships with fossil fuel industries, and in regions with scarce renewable resources, it still relies heavily on RECs.
Microsoft Azure has had an established carbon neutral status since 2012 and has been running on 100% renewable energy (including RECs) since 2014. The company has implemented internal carbon taxes, invested in clean energy projects, and explored new ways to increase energy efficiency, such as the aforementioned underwater data centers and fuel cells. Like Google, Microsoft has had run-ins with the fossil fuel industry, causing employee backlash, and its reliance on natural gas and RECs raises questions about its sustainability claims.
Amazon Web Services, despite being the largest provider on the market, faces the most significant criticism for its green initiatives. Accused by Greenpeace of backtracking on its renewable energy commitments, Amazon data centers in some regions operate with just 12% renewable energy. Amazon's lack of transparency regarding its carbon footprint and lack of a clear roadmap to reach 100% renewable energy have drawn new criticism.
While the big three cloud providers are making progress toward decarbonization, their efforts vary significantly. Achieving true green in the cloud will require more than efficiency upgrades and carbon offsetting strategies; it will require a relentless search for renewable energy sources and a commitment to transparency in their environmental impact. This is a task not just for these giants, but for the entire digital ecosystem, from individual users to large corporations.
The urgent need for sustainable technology: why it matters
Okay, before you roll your eyes, I swear I'm not advocating turning off the internet, getting naked, and hugging trees. I love my gadgets too much for that. But the truth is that we should be worried about what will happen in the coming years.
I have the unfortunate pleasure of knowing more than a few people who, just as some people distrust IT outsourcing, don't trust science when it comes to climate change, specifically because scientists have missed the mark a few times. But, as I like to point out, models are not necessarily a 1:1 reflection of reality. Sometimes we just want to know what the worst case scenario is.
Take for example the COVID-19 pandemic. The first models released by scientists were very wrong, but they also painted a picture of what could happen if we did not take health measures to prevent the spread as much as possible. It's an educated guess based on past data. But sometimes that's all we have.
Returning to the subject, sustainability goes beyond being a buzzword or a trend; It’s about taking responsibility for our actions and their impact on the environment. By adopting sustainable technological practices, we can reduce carbon emissions, minimize the generation of electronic waste and preserve natural resources for future generations.
That's why governments around the world are increasingly implementing regulations to address environmental concerns. Failure to comply with these regulations can result in heavy fines and damage to a company's reputation. And in some cases, you may even have problems as a business partner.
Do you want empirical evidence of how important sustainable energy really is? A study by Energy Innovation revealed that even with the enormous growth of cloud technology in recent years, energy consumption has stabilized for now. Why is that? Because even with constant growth, there has also been a rapid development of energy-conscious technology, from microprocessors to printers, every bit counts.
But this is a fragile balance and in the last three years (the study was carried out in 2020) we have seen an increase in energy consumption. For example, graphics cards and GPUs are consuming more power than ever, and remember this is the backbone driving the AI revolution we live in now.
What is the next?
As we reflect on the topics discussed here, it becomes clear that the technology industry has reached a crucial turning point. Cloud computing, the backbone of our data-driven world, may not be as green as we want to believe. Behind the convenience and scalability it offers is a rather obscure and difficult to measure environmental cost that we can no longer ignore. We are faced with the dichotomy of technological progress and the urgency of environmental sustainability.
Today, the burden of climate change is very real and our digital dependence contributes significantly to this global crisis. The colossal data centers that make up the heart of our online world are huge energy hogs. They require continuous cooling systems that increase their carbon footprint. With cloud computing expected to continue to expand over the next decade, we must seriously question the environmental consequences of this growth.
The location of data centers, e-waste management, energy-efficient cooling solutions and the use of renewable energy sources are important factors in making cloud computing more sustainable. However, they are just pieces of a bigger puzzle. Finding a balance between our dependence on fossil fuels and the development of renewable energy is a complex challenge that requires innovative solutions.
Companies like Microsoft have begun exploring unconventional approaches, such as underwater data centers, that could significantly reduce the need for energy-intensive cooling systems. Although still at an early stage, these pioneering initiatives could pave the way for a greener future. It is crucial to remember, however, that innovation alone cannot exempt us from our current responsibility towards the environment.
The technological giants that dominate the cloud industry, namely Amazon Web Services, Google Cloud and Microsoft Azure, have a great responsibility in the search for sustainability, but they are not the only ones. There are literally hundreds of cloud providers offering all types of services, and not all of them are as open about their green policies as the big three. We have to be very careful with who we decide to do business with.
Transparency in communicating environmental impact, increasing commitment to renewable energy and collaborating with partners who prioritize sustainability are just a few steps we can take. And although it is easy to attribute responsibility to these giants, it is important to remember that this is a collective responsibility, which ranges from individual users to large corporations.
To reconcile our technological advancement with the health of our planet, we must defend a future that combines innovation with sustainable practices. This is our collective mission. As we move forward, it is our actions today that will shape the digital world of tomorrow. As the frontiers of technology continue to expand, let's ensure they become greener and more sustainable. As both leaders and consumers, the call to action is clear: we must consciously drive the push for sustainable technology because our future depends on it.