The State of Sustainability in Cloud Infrastructure Balancing Growth and Environmental Impact

The State of Sustainability in Cloud Infrastructure: Balancing Growth and Environmental Impact

As the world becomes increasingly digital, the demand for cloud infrastructure is rapidly growing. However, this growth comes with significant environmental challenges. The data centers that power cloud computing require large amounts of energy, resulting in significant greenhouse gas emissions. Therefore, the state of sustainability for cloud infrastructure globally is a critical issue that must be addressed.

As of 2021, data centers and cloud computing account for approximately 2% of global greenhouse gas emissions, which is roughly equivalent to the aviation industry.

The Need for Sustainability in Cloud Infrastructure

Cloud infrastructure, also known as data centers, are essential to the digital world we live in. They store and manage the data used by businesses and individuals around the world. Cloud computing has made it possible for people to work remotely, access information from anywhere, and reduce their hardware and storage costs. However, the growth of cloud infrastructure has significant environmental implications.

Data centers consume vast amounts of energy, and the energy they use is often produced from fossil fuels. According to a report from the International Energy Agency, data centers were responsible for 1% of global electricity use in 2020, and this number is expected to increase. The carbon emissions from data centers are a significant contributor to climate change, and there is an urgent need to address this issue.

Sustainability Efforts in Cloud Infrastructure

The good news is that many companies are taking steps to make their cloud infrastructure more sustainable. In 2021, our partner Equinix, became the first company in the data centre industry to commit to being climate neutral globally by 2030. They are well on their way to meeting their  commitments, with over 95% renewable coverage for their portfolio in FY21, reaching over 90% for the fourth consecutive year.

Other sustainability efforts include improving data center efficiency through the use of artificial intelligence and machine learning algorithms to optimize cooling systems and reduce energy consumption. Some companies are also exploring the use of renewable energy sources such as solar and wind power to power their data centers.

The Role of Governments in Promoting Sustainability

Governments also have a crucial role to play in promoting sustainability in cloud infrastructure. They can provide incentives for companies to adopt renewable energy sources and improve energy efficiency in their data centers. They can also regulate energy consumption and carbon emissions from data centers to ensure they are within sustainable limits.

According to the United Nations, as of 2021, 193 countries have committed to the Sustainable Development Goals (SDGs), which are a set of 17 goals designed to address poverty, inequality, and environmental degradation.

In 2021, the European Union proposed the Digital Services Act, which aims to make cloud infrastructure more sustainable. The act includes requirements for data centers to use renewable energy, reduce carbon emissions, and improve energy efficiency. This regulation is an example of how governments can promote sustainability in the digital world.

The Responsibility of The Board

Given the board’s responsibility for an organization’s governance, management, and strategic direction, sustainability has become a critical item on the boardroom agenda. According to Cheryl Hayman, a non-executive director on various boards, including Ai-Media, Beston Global Food Company, and Chartered Accountants Australia and New Zealand, relying on just one individual to oversee sustainability is both dangerous and negligent. Instead, sustainability is viewed as a shared responsibility around the board table, with each member contributing to the effort. Ms. Hayman explains that on her boards, sustainability is addressed in the risk register and thoroughly discussed at every finance, audit, and risk committee meeting, as well as embedded in the digital technology committee. Fiona Reynolds, the chair of the UN Global Compact Network and former CEO of the Principles for Responsible Investment, notes that board directors must monitor ESG issues as both risks and opportunities.

The Role of IT and Digital Partners

By 2025, Gartner predicts that 50% of CIO’s will have performance metrics tied to IT sustainability.  Choosing appropriate tools, hardware, and vendors to achieve the highest possible output with the least amount of resources is the definition of sustainable IT. Goals for sustainable IT should involve minimizing Scope 2 and 3 greenhouse gas (GHG) emissions, which refer to indirect emissions caused by IT electricity usage and emissions outside of the enterprise’s direct control (such as embodied carbon in decommissioned IT). Additionally, it is crucial to prioritize fundamental issues such as human rights, ethical sourcing, and transparency in the supply chain.

The growth of cloud infrastructure is essential to the digital economy, but it comes with significant environmental challenges. The energy consumption and carbon emissions from data centers must be addressed to ensure a sustainable future. Many companies are taking steps to improve the sustainability of their cloud infrastructure, and governments can provide support through regulation and incentives. The state of sustainability for cloud infrastructure globally is a critical issue that must be addressed to create a more sustainable digital world.