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The intersection of cloud technology and sustainability

Written by Celise Skaar | Oct 7, 2024 12:10:00 PM

In today’s rapidly evolving technological landscape, sustainability has become a central focus for businesses across all industries. With cloud technology transforming the way we develop, operate, and analyze data, organizations are increasingly looking to align their digital strategies with sustainability goals. 

In an era where digital transformation is paramount, the synergy between cloud technology and environmental sustainability is becoming increasingly clear. The transition from bulky on-premises hardware to more efficient cloud data centers not only streamline operations but also has the potential to support a greener future. While the cloud can be a more sustainable solution, its true impact depends on how it is implemented and optimized, especially through the integration of artificial intelligence (AI), machine learning, and the Internet of Things (IoT)

As businesses migrate their IT infrastructure to cloud platforms, they can contribute to greener operations if they select cloud providers that prioritize energy efficiency and renewable energy sources.  

Many cloud data centers are now powered by renewable energy, significantly reducing their carbon footprint. According to a study by IDC, the shift to cloud services could result in a reduction of at least one billion tonnes of CO2 emissions globally over the next four years, primarily due to smarter energy use, optimized cooling, and improved hardware utilization by cloud providers. 

Efficient hardware utilization 

One of the key advantages of cloud computing is its ability to optimize hardware usage. IDC notes that cloud data centers leverage advanced technologies to operate more efficiently than traditional on-premises setups. Approximately 30% of on-prem servers are classified as "zombie" servers—machines that are powered on but not performing any workloads. This inefficiency leads to wasted energy and increased emissions. In contrast, cloud service providers run ultra-efficient data centers that minimize wasted resources, helping to lower overall emissions. However, businesses must choose providers committed to sustainability for the full potential of these savings to be realized. 

Read our case: The cloud saves tonnes of CO2 emissions  >

Cloud technologies driving decarbonization 

While many now recognize the cloud's potential to reduce carbon emissions, its role in facilitating broader decarbonization efforts has received less attention. Cloud technologies can significantly enhance an organization’s ability to meet decarbonization goals, especially when integrated with cutting-edge tools like generative AI. This integration allows companies to access capabilities that were previously too costly or complex to implement on-premises. 

For example, cloud-based data lake technologies allow organizations to quickly analyze large datasets, which is vital for understanding Scope 3 emissions - indirect emissions from a company’s supply chain. In sectors like logistics, where these emissions can account for up to 80% of total emissions, the cloud enhances visibility and transparency. By leveraging decentralized data exchanges, companies can identify opportunities to reduce emissions by up to 40% and develop actionable decarbonization strategies much faster, according to research by McKinsey & Co. However, achieving such reductions is highly dependent on sector-specific factors and the integration of cloud services with other tools. 

Additionally, with increasing regulatory pressures, cloud technologies facilitate better data management and compliance, which are essential for addressing key environmental challenges. 

The cloud as a catalyst for change 

The journey toward environmental sustainability is fraught with challenges, but the cloud presents a viable path forward. By harnessing the efficiency of cloud computing and integrating advanced technologies like AI, machine learning, and IoT, organizations can not only reduce their carbon footprint but also drive significant progress toward decarbonization. 

As we continue to navigate an increasingly digitalized world, embracing cloud technology is not just an IT decision - it’s a critical component of our collective effort to foster a sustainable future. However, to maximize its impact, businesses must prioritize sustainability in their cloud strategies, selecting responsible providers and implementing mindful practices. Through such commitments, the cloud’s potential to help create a greener, more sustainable world for generations to come can be fully realized.