Today, almost every company uses cloud computing (94% to be precise) because of its cost savings, scalability and collaboration benefits. While its benefits are clear, a major problem remains: cloud computing emissions are responsible for 4% of global greenhouse gases.
Cloud hyperscalers like AWS, Azure and Google Cloud are making big promises to reduce their environmental impact – a necessity to keep consumers on side in 2024. But now that more data is being stored in the cloud and therefore in larger data centers than ever, cloud hyperscalers are fighting an uphill battle.
Let’s unravel the environmental challenges cloud hyperscalers face and learn how businesses can use cloud computing responsibly.
Founder and CEO of BOS Framework.
The challenge of cloud sustainability
All major cloud providers have pledged to go green. In fact, between 2017 and 2022, Google Cloud has consistently supplemented 100% of its electricity consumption with renewable energy sources. And Microsoft has promised that its cloud data centers will be powered by 100% renewable energy sources by 2025.
While this is a step in the right direction, a major issue is renewable energy certificates (REC). When a renewable energy source generates one megawatt hour (MWh) of electricity, such as solar or wind energy, it sends this energy to the electricity grid, which in turn creates a REC. Companies can then purchase these RECs to offset their carbon footprint, but critics argue they do not guarantee clean energy consumption.
The problem is that both fossil fuels and renewable energy power the grid, and once the energy enters the grid, no one knows exactly where the electricity they use comes from. So companies and cloud hyperscalers could buy all the RECs they need to look like they’re using 100% renewable electricity, but in reality the energy they’re using comes from a ‘dirty’ grid.
To combat this greenwashing, many companies, including cloud hyperscalers, are moving to Time-based Energy Attribute Certificates (T-EACs). These provide a time stamp of how and where the energy was produced, providing a more accurate picture of companies matching their energy consumption.
In 2022, Amazon’s carbon footprint was 71.3 million tons, more than twice the amount produced by the entire Hong Kong region. And with Google admitting that “there are still regions and times of day… (when) we are forced to rely on fossil fuels to meet our electricity needs,” the journey to carbon neutral has begun, but it appears it may be a a long.
However, because cloud computing is essential for most businesses, companies can still implement strategies to alleviate their carbon emissions.
Business Solutions: Balancing Cloud Innovation with Environmental Responsibility
It’s no secret that cloud hyperscalers have work to do when it comes to their environmental impact. However, there are still several ways companies can leverage cloud computing while reducing their energy consumption and carbon footprint.
For example, companies can focus on reducing their resource use with on-demand scalability. Many cloud providers offer built-in auto-scaling features that allow companies to define scaling policies based on metrics such as central processing usage, memory, or network traffic. When these metrics reach predefined thresholds, the platform automatically scales resources up or down to meet demand.
Companies can also consolidate servers through virtualization. This allows them to run multiple virtual machines (VMs) on a single physical server, increasing hardware usage and saving energy. Popular platforms include VMware vSphere, Microsoft Hyper-V, and open source options. However, planning is crucial. Companies must analyze their IT infrastructure, group compatible servers, select a platform and create a migration plan to minimize downtime.
Most cloud hyperscalers also offer carbon footprint analysis tools and dashboards, allowing companies to track their energy consumption and emissions profiles. Microsoft has its Emission Impact Dashboard, AWS has its Customer Carbon Footprint Tool, and Google Cloud has its Carbon Footprint tool. Google even offers customers the option to choose which region they want to host their application in, so they can select the location with the lowest carbon emissions.
These tools provide companies with clear insight into the carbon footprint associated with their cloud use. The data generated by these tools can provide sustainability reports that demonstrate a company’s commitment to environmental responsibility. This transparency can improve brand image and appeal to environmentally conscious customers and investors.
To block
The purchasing power of millennials and Gen Z will surpass boomers by 2030, transferring $68 trillion in wealth to younger generations. And with 62% of Gen Z shoppers preferring sustainable brands, using green measures in the cloud and sharing that information with customers can help increase sales and increase customer loyalty.
So while cloud hyperscalers still have a long way to go when it comes to being 100% carbon neutral, companies can implement their own green computing strategies. With on-demand scalability and server consolidation, companies can take control of their own carbon footprint and turn their green cloud use into a competitive advantage.
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