Computers run the world, and computers are run by software; therefore, software development has become an integral part of almost every industry. In the past, the sole focus of CEOs, CFOs, and investors was on growth and financial aspects. Still, with the coming of the 21st century, we’ve seen a growing concern about climate change and what we can do to foster sustainability. Today, we will talk about cloud computing and see if it’s as green as we want to believe.
Cloud computing has revolutionized the way businesses operate by providing scalable infrastructure and storage solutions. However, behind its convenience lies a significant environmental concern that often goes unnoticed.
The massive data centers required to power cloud services consume vast amounts of energy. These centers need continuous cooling systems and run 24/7, resulting in substantial carbon emissions. As a short but significant example, 2% of the current energy consumption in the United States serves data centers. It could be worse, but remember, data centers are always expanding as demand grows. It’s our responsibility as leaders of our organizations to be conscious of our energy consumption and how our partners handle 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 generation, while others prioritize renewable energy sources such as solar or wind power. Investing in data centers powered by clean energy can significantly reduce carbon footprints associated with cloud services.
Another point to keep in mind is that as hardware becomes obsolete (which happens quicker than ever before), we see constant upgrades and, as a consequence, a surge in electronic waste. Old devices get replaced with newer models. For example, GPUs used for AI technologies get replaced all the time as providers develop new products for the market.
Proper e-waste management is crucial to minimize environmental harm 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 work? The cloud is a wonderful technology, but it doesn’t relieve us of our responsibility toward 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 notorious for their high energy consumption. They require a constant supply of electricity to keep servers running smoothly and maintain optimal temperature conditions. This continuous demand for power 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 isn’t that we can’t compensate right now, but rather, what’s going to happen in the future. Cloud computing as a market is going to keep growing 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 might consume up to 8% of worldwide energy. Therefore the expansion of the cloud industry has to go in hand with the development of new technologies that mitigate the environmental impact of all that processing power. New and environmentally-conscious cooling solutions are the first step, but they can’t be the only strategy.
Take for example, virtualization technology—a single server can run multiple virtual machines, maximizing resource utilization and reducing the need for additional hardware and energy. Consolidating servers through virtualization is a solid step, especially for small-scale companies, to minimize their carbon footprint by decreasing the number of physical machines required in a data center. The math is simple: fewer machines equals 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 power. Many forward-thinking companies are investing in renewable energy projects or partnering with providers who prioritize clean energy generation for their facilities.
Unfortunately, solar and wind power pales in comparison to the amount of energy we get from carbon and fossil fuel. For example, solar energy is not feasible in every part of the globe due to the earth’s position in relation to the sun, and wind-powered solutions rely on specific climate conditions.
We are not getting rid of fossil fuels anytime soon, but there is a balance that can and should be achieved.
Beyond renewable energy adoption, green building design principles can also play a crucial role in reducing carbon footprints associated with data centers. And I’m not talking about well-known sustainable features like efficient insulation, natural lighting systems, and smart HVAC. Oh no, we are talking about going into Sci-Fi territory.
In 2018, Microsoft submerged a data center underwater for testing purposes. Two years later, the container was recovered, and under all the algae and barnacles, there was a perfectly functional system. Unfortunately, Project Natick wasn’t as popular as we would’ve 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 cooling solutions. Of course, it’s still too early to tell; there are still way too many unknowns. But hey, it’s a first step.
Finally, proper lifecycle management of data center equipment is essential to minimize e-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 electronic waste.
Comparing the Big Three
The metaphor “data is the new oil” was originally coined as a way to denote just how important data would become in the 21st century. Unfortunately, it’s also a fitting analogy with regard to the impact that data processing has on the environment. Remember that Bitcoin craze a few years ago? Turns out that mining Bitcoin consumed more power than Argentina. I’ll let that sink in for a moment. Farming digital currency uses more power than a population of 46,044,703 inhabitants.
One of the biggest problems we have when talking about green technologies is how to actually measure them. Different tech stacks have different requirements, and the carbon footprint is a compound of several factors, including energy usage, waste handling, business partners, and more.
One approach proposed by Jonathan Koomey, a leading expert in the field, suggests evaluating a data center’s greenness based on three aspects: infrastructure efficiency, server efficiency, and the origin of its electricity.
Three tech giants—Amazon Web Services (AWS), Google Cloud, and Microsoft Azure—dominate the cloud computing industry, offering various “hyperscale” server farms that serve as virtual homes for a vast quantity of worldwide data. Their environmental footprint is massive (to put it mildly), and any move toward decarbonization on their part could be a significant contribution to global emission reduction.
The Big Three have pledged to decarbonize their data centers, relying heavily on renewable energy credits (RECs) to balance their carbon footprints. RECs represent the green energy generated by utilities and help these companies maintain the façade of being 100% powered by renewables, even while connected to fossil-fuel-based grids.
But as usual, the devil is in the details. RECs come in many flavors, and the relationship between RECs and fossil fuel is tenuous at best. Let’s say you buy 1 megawatt of renewable energy. How does that compensate for the damage your business partner might be causing to the people that live near an energy plant? How do we calculate the pollution incurred by oil extraction? Not only in terms of carbon emission but also in terms of the procedures to extract oil and the consequences it has on the soil and surroundings.
This is a complicated subject, and pardon if I sound a tad biased, but RECs sometimes sound like paying someone to swipe the dust under the rug. On paper, you are 100% renewable, but in truth, you are still polluting 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 across its operations since 2017. Their efforts include large-scale renewable energy purchases, optimizing data centers using machine learning, and spearheading renewable projects to increase grid resources. However, Google’s commitment to greening its data centers has not precluded 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 run on 100% renewable energy (including RECs) since 2014. The company has implemented internal carbon taxes, invested in clean energy projects, and explored novel ways of increasing energy efficiency, like the aforementioned underwater data centers and fuel cells. Like Google, Microsoft has had its run-ins with the fossil fuel industry, causing employee backlash, and their reliance on natural gas and RECs raises questions about their sustainability claims.
Amazon Web Services, despite being the largest provider in the market, faces the most significant criticism for its green initiatives. Accused by Greenpeace of backsliding on their renewable energy commitments, Amazon’s data centers in some regions operate with as little as 12% renewable energy. Amazon’s lack of transparency regarding its carbon footprint and the absence of a clear road map for achieving 100% renewable energy have attracted further criticism.
While the Big Three cloud providers are making strides toward decarbonization, their efforts vary significantly. Achieving true greenness in the cloud will require more than efficiency upgrades and carbon offset strategies; it will demand a relentless pursuit of 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 that I’m not arguing for turning off the internet, getting naked, and hugging trees. I love my gadgets way too much for that. But the truth is that we should be worried about what will happen in the next few years.
I have the unfortunate pleasure of knowing more than a few folks who, similar to how some distrust IT outsourcing, don’t trust the science in regard to climate change, specifically because scientists have missed the mark a few times already. But, as I like to point out, models aren’t 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 way off-mark, but they also painted a picture of what could happen if we didn’t take sanitary 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.
Back on topic, sustainability goes beyond being a buzzword or a trend; it is about taking responsibility for our actions and their impact on the environment. By embracing sustainable technology practices, we can reduce carbon emissions, minimize e-waste generation, and preserve natural resources for future generations.
That’s the reason why governments around the world are increasingly implementing regulations to address environmental concerns. Non-compliance with these regulations can result in hefty fines and damage to a company’s reputation. And in some cases, you can even get in trouble as a business partner.
Do you want empirical evidence of how important sustainable energy truly is? A study by Energy Innovation revealed that even with the massive growth in cloud technology in the last few years, energy consumption has plateaued for the time being. Why is that? Because even with the constant growth, there has also been a fast development of energy-conscious technology, from microprocessors to printers, every bit counts.
But that is a fragile equilibrium, and in the last three years (the study was made in 2020) we have seen a surge in power consumption. For example, graphic cards and GPUs are drawing more power than ever, and remember that this is the backbone that’s powering the AI revolution we are living in right now.
What’s Next?
As we reflect on the themes 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 lies a rather murky and hard-to-measure environmental cost that we can no longer afford to ignore. We are confronted 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 form the heart of our online world are enormous energy consumers. They necessitate continuous cooling systems that drive up their carbon footprints. With cloud computing projected to keep expanding over the next decade, we must earnestly 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 all important factors in making cloud computing more sustainable. However, they are just pieces of a larger puzzle. Striking a balance between our reliance 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. While still in its early stages, such pioneering initiatives could pave the way for a greener future. It is crucial to remember, however, that innovation alone cannot absolve us of our current responsibility toward the environment.
The tech giants dominating the cloud industry, namely Amazon Web Services, Google Cloud, and Microsoft Azure, carry a heavy responsibility in the quest for sustainability, but they are not the only ones. There are literally hundreds of cloud providers offering all manner of services, and not all of them are as forthcoming about their green policies as the big three. We have to be very careful with whom we decide to do business.
Transparency in reporting environmental impact, increased commitment to renewable energy, and collaboration with partners prioritizing sustainability are just some steps we can take. And while it’s easy to place the onus on these giants, it’s important to remember that this is a collective responsibility, spanning individual users to large corporations.
To reconcile our technological advancement with the health of our planet, we must champion a future that marries 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 boundaries of technology continue to expand, let us ensure they grow greener and more sustainable. As leaders and consumers alike, the call to action is clear—we must consciously drive the push for sustainable technology because our future depends on it.
