By Anurag Bansal
The rise of cloud computing has quickly become a foundation for digitalization in industries. The industry estimates show that the global cloud market is set to reach $1 trillion by 2028, an increase from $411 billion in 2022, underscoring tremendous growth. Cloud technology facilitates advancements such as intelligence, blockchain, 5G networks, and the Internet of Things (IoT). By centralizing computing power in data centers and offering on-demand access to computing resources, storage, and services, the cloud empowers organizations of all sizes to innovate.
Despite its benefits, cloud computing consumes massive energy to run and cool servers. In 2022, data centers and networks utilized between 260 to 360 terawatt hours (TWh) of electricity, accounting for 1% to 1.5% of global energy consumption. While data center workloads surged by over 600% from 2015 to 2022, energy usage within data centers only increased by an average of 18% and 64% during that period. This discrepancy underscores the strides made in enhancing energy efficiency through optimized data center design advancements in IT hardware technology and the utilization of energy sources.
The scalability offered by cloud services fosters flexibility while minimizing energy wastage and enhancing resource efficiency. Furthermore, there is a trend among providers towards utilizing eco-friendly energy sources as part of their commitment to reducing the environmental impact of their services.
One remarkable example is the prediction that cloud-based technologies could potentially cut down on 32 gigatons of CO2 emissions by 2050, showcasing the role of the cloud in supporting the transition towards reaching zero emissions. However, continuous endeavors to enhance efficiency levels necessitate energy resources.
What do you think is the role of MNCs, such as Google, Microsoft, etc, in this related area?
Large cloud companies, also known as hyperscalers, impact how we can use technology to reduce emissions because of their size. Giants like Google, Microsoft, Amazon, Meta, and others are increasing their energy consumption for data centers with more than 10 gigawatts in use. In 2020, Microsoft and Google matched the amount of electricity their data centers used with the energy they bought from renewable sources.
Significant corporate Power Purchase Agreements (PPAs) boost energy demand. Support the creation of renewable projects. These tech giants also invest heavily in research and development to make data center infrastructure, server hardware, cooling systems, and data networks energy efficient. Google states that its data centers’ Power Usage Effectiveness (PUE) has improved from 1.21 in 2008 to 1.10 in 2021.
Additionally, these major providers offer customers tools like carbon footprint dashboards to help them reduce emissions when using their cloud services. Most have committed to setting science-based goals for cutting emissions. However, critics argue that these cloud giants could do more to eliminate carbon from their operations by moving from carbon-offsetting tactics, cutting ties with fossil fuel companies, and using their influence to push for eco policies. The environmental benefits of cloud computing greatly depend on the leadership and innovation of global corporations.
Future predictions?
Cloud computing is anticipated to play a significant role in supporting decarbonization and promoting sustainability across the economy in the future. With industries embracing cloud technology, new opportunities for efficiency and reduced emissions will arise. For instance, the combination of 5G and cloud-based edge computing could allow for real-time optimization of autonomous electric shipping fleets from a remote location.
The widespread use of augmented reality through the cloud might reduce the need for business travel and commuting time. Real-time machine learning optimization of city infrastructure, such as energy grids and transportation systems, will heavily depend on centralized cloud data storage. Additionally, blockchain applications can encourage practices by utilizing cloud-based tokens and transparent mechanisms.
As we witness advancements in the Metaverse, efficient virtual cloud services could potentially replace a portion of physical economic activities. Nevertheless, the growing energy demands from technologies such as AI and blockchain will require enhancements in energy efficiency within cloud computing and a quicker shift towards zero-carbon grid electricity sources. Data centers and networks are projected to be nearly carbon neutral by 2040 under the NZE scenario.
Over the next few decades, cloud computing will become increasingly vital in driving sustainability initiatives across various sectors. It will be necessary to implement policies and corporate strategies to guide cloud computing toward producing positive impacts on the climate.
The author is managing director, 13D