Digital transformation has made cloud computing a more pivotal tool for growth and operational efficiency than ever. Cloud service providers — hosting massive networks of data centres around the globe — provide the infrastructure to run everything from data storage to popular Software as a Service applications.

But this reliance on cloud services comes at a price. The move to cloud-based solutions has raised concerns about data centre emissions and their contribution to global carbon footprints. In fact, some reports estimate that up to 4% of global greenhouse emissions come from data centres.

With such startling emissions data, it’s easy to see why calculating cloud carbon footprint is essential for businesses committed to sustainability. It involves not only recognising the emissions associated with cloud usage but also addressing the environmental impact.

In this blog, we’ll explore how businesses can:

Assess and calculate their cloud computing carbon footprint
Understand data centre emissions
Implement strategies to minimise their environmental impact

What is cloud carbon footprint?

Cloud services are accessed globally. The infrastructure that supports them — huge networks of data centres — requires a massive amount of electricity to function. Simply put, cloud carbon footprint is the total amount of greenhouse gas emissions these cloud services generate.

Key factors contributing to the cloud carbon footprint

Cloud carbon footprint consists of many emission factors, from the energy used to power the data centres hosting cloud services to the resources required for data storage and transfer:

Powering physical infrastructure: First is the power consumed by the physical infrastructure of the data centre itself. This includes the servers and the equipment needed to keep them running, such as cooling systems and resulting in subsequent CO2 output.
Storing data: Data storage services also come with a carbon footprint. After all, every file stored in the cloud requires physical server space. Maintaining and powering that server space consumes energy over its entire lifecycle.
Transferring data: Every time data gets transferred, energy gets consumed. The larger the data transferred, the greater the carbon emissions. Individual transfers may seem small, but they all contribute to cloud carbon emissions.

Calculating cloud carbon footprint

When calculating a cloud service’s carbon footprint, there are several factors to consider that contribute to the total emissions generated.

As such, calculating a footprint isn’t simple. It involves different elements of energy consumption and operational efficiency. But thankfully, many cloud providers offer tools that help businesses understand and reduce cloud emissions. Here are some key factors to keep in mind when calculating cloud computing carbon footprint.

Data centre carbon footprint calculations

‘Carbon Footprint’ refers to the greenhouse gas emissions produced by an individual, organisation or product. In this case, we are discussing corporate carbon footprints, which measure all emissions related to business activities.

These emissions typically come from sources such as company vehicles and manufacturing plants, which provide direct emissions, energy use, transportation, waste disposal, and production, which would be considered indirect emissions for the business.

Both direct and indirect emissions are included in the calculation of a carbon footprint.

When carbon emissions are discussed in a business context, the terminology ‘Scope 1’, ‘Scope 2’ and ‘Scope 3’ emissions are often used.

Scope 1 covers direct emissions such as non-electric vehicles (as mentioned above),
Scope 2 emissions are indirect and come from services that are paid for by the company, such as transportation, waste disposal and production.
Scope 3 emissions are also indirect, but they are emissions caused by the end user of a product or service in their usage.

Businesses have direct control over emissions in traditional settings, but there are fewer chances to improve energy efficiency in on-premises data centres. However, in cloud computing, there is no direct control for businesses other than choosing a provider with sustainable goals.

Key metrics to consider include Power Usage Effectiveness (PUE), which measures the total energy consumption to the energy used by computing equipment. A lower PUE means a facility is more energy efficient.

Typically, as cloud usage grows, so does the carbon footprint. The energy consumed largely depends on the number of servers and storage systems businesses use. Generally, the more computational power required for workloads, the greater the energy consumption. Businesses must also access, back up, and maintain cloud storage continuously. Depending on how often a business accesses its data sets, energy consumption may increase or decrease over time.

Combined, all this computing power generates a lot of heat output. To keep servers running at their best, cooling systems remove excess heat, which, in turn, consumes energy. For this reason, the efficiency of the cooling systems used in a data centre — such as traditional air cooling versus more sustainable options like direct liquid-cooled systems — impacts the total energy consumed.

How data centres influence carbon emissions

Data centres power cloud computing. As such, they’re responsible for a significant share of the world’s carbon emissions, which will only grow as demand for cloud services increases. However, it’s possible for data centres to affect — and even reduce — the amount of carbon they produce.

Several factors that drive the energy demands of data centres include:

Despite the significant challenges with reducing data centre carbon footprints, there are also opportunities. Innovation and improvement in data centre operations can help introduce more energy-efficient cooling methods, new designs for data centres, and cleaner energy sources. Partnering with these forward-thinking data centre providers is key to reducing the overall cloud carbon footprint.

Strategies for reducing cloud carbon footprint

The good news is that there are several practical strategies that can help reduce energy consumption and emissions — potentially also leading to cost savings. These strategies include the following.

1. Choose renewable or carbon-neutral data centres

Many modern cloud providers offer carbon-neutral data centres. These are powered by renewable energy or offset their emissions through carbon offset programmes. Technologies like water-cooled data centres and liquid-cooling systems can drastically reduce energy consumption.

When looking for a data centre provider, look at how they cool and power their data centres. By working with a provider with a commitment to sustainability, businesses can significantly reduce their cloud carbon footprint.

2. Optimise resource usage

Using suitable cloud resources is also an essential step. Many businesses overprovision cloud services — paying for more computing power and storage than they need. It’s best to optimise workloads, consolidate services, and automate provisioning where possible for more efficient use of cloud resources. This reduces costs and minimises the energy required to run the IT infrastructure.

3. Reduce data redundancy

With ample cloud storage available, it’s sometimes difficult to remember that not all data needs to be stored forever. Yet, many businesses tend to store large amounts of redundant data. This leads to unnecessary energy consumption through excessive transfer and storage. To fix this, businesses can conduct regular audits, remove duplicates, and use more energy-efficient storage options like cold storage for infrequently accessed data.

4. Use sustainability reporting tools

Most modern cloud providers offer tools that provide insights into the cloud's carbon footprint. They may also make recommendations on how to reduce it. Using these tools can help businesses monitor energy usage in real time, track emissions, and act sustainably. By implementing these strategies, businesses can take steps towards reducing their cloud computing carbon footprint.

How cloud computing reduces carbon footprint

While cloud computing produces carbon emissions, it’s critical to remember its benefits compared with traditional on-premises IT infrastructure. One of the key advantages of cloud computing is its ability to consolidate resources. It also operates at scale, leading to greater energy efficiency.

By moving to the cloud, businesses can significantly reduce their carbon emissions in several ways:

Cloud providers operate large, multi-tenant data centres that allow for the sharing of infrastructure called colocation. This reduces the need for individual businesses to maintain inefficient and under-utilised physical servers. Fewer overall servers means less energy consumption.
Cloud providers also have a financial and environmental incentive to maximise energy efficiency. Using energy-efficient hardware, optimising data centre design, and implementing advanced cooling technologies mean cloud providers can operate more efficiently than smaller facilities.
Cloud providers invest in renewable energy sources to reduce their CO2 emissions as well. By using services within these facilities, businesses can also reduce their carbon usage. In fact, studies have shown that businesses can reduce their carbon emissions by up to 84% by migrating to the cloud, depending on the size and scale of their operations.

Cloud computing and sustainability

The cloud carbon footprint is a significant contributor to world emissions. But businesses can lower their carbon emissions by making informed choices about their cloud providers, optimising their cloud usage, and selecting the right services for their workloads.

Thanks to its many benefits, the demand for cloud services continues to grow. As such, so too does the responsibility on data centre providers to reduce the associated carbon emissions. Factors like utilising climate-neutral data centres, optimising resources, and implementing more efficient cooling technologies can reduce their environmental impact.

By partnering with a sustainable data centre provider like Digital Realty, businesses can reduce their overall environmental impact without sacrificing business growth, goals, or scalability. Contact us today to learn more about PlatformDIGITAL bringing your IT infrastructure into the future while reducing your carbon footprint for sustainable operational efficiency.

Frequently asked questions

How do you calculate cloud carbon footprint?

Businesses can calculate their cloud carbon footprint by measuring factors like energy consumption, the carbon intensity of local energy sources, and renewable and carbon free energy sources procured for the data centres. Likewise, working with your data centre provider can give an insight into overall carbon production.

Digital Realty can support you in calculating your cloud carbon footprint. Contact us to speak to one of our experts.

How can cloud services reduce carbon emissions?

Cloud services can reduce carbon emissions by consolidating resources that would otherwise require dedicated on-premises equipment. They also benefit from being hosted by data centre operators using the latest energy-efficient facilities.

How much CO2 does a data centre produce?

A data centre's CO2 emissions depend on many factors, including its:

Size

Location

Cooling technologies

Energy source

Some larger data centres may emit a significant amount of CO2. However, more sustainable centres can be carbon neutral.

Are water-cooled data centres more sustainable?

Water-cooled and liquid-cooled data centres are generally more energy-efficient than less cutting-edge facilities. They improve on traditional air-cooled systems by reducing energy consumption and the associated emissions. However, air-cooled systems may be more sustainable for data centres that are in water-stressed locations.

How can a data centre become climate neutral?

A data centre can do various things to become climate neutral, such as:

Use renewable energy sources

Install energy-efficient technologies

Upgrade to more eco-friendly cooling techniques

Invest in carbon offset programmes

2023 ESG Environmental, Social, and Governance Report