Cloud technology could potentially save up to one billion tons of emissions by 2030: Anurag Bansal, MD, 13D

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.

Talking about the lopsides, Anurag Bansal, Managing Director at 13D- Research and Strategist, says that despite its benefits, cloud computing consumes massive energy to run and cool servers. He informs, "In 2022, data centers and networks utilized between 260 to 360 terawatt hours (TWh) of electricity, accounting for 1 per cent to 1.5 per cent of global energy consumption. While data center workloads surged by over 600 per cent from 2015 to 2022, energy usage within data centers only increased by an average of 18 per cent and 64 per cent 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."

He adds that the scalability offered by cloud services fosters flexibility while minimizing energy wastage and enhancing resource efficiency. And 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," he avers.

The Managing Director at 13D discusses myriad facts and facets of cloud computing in a free-wheeling chat with ZeeBiz.com. Excerpts —

Q: What is the role of cloud computing in reducing carbon emissions?

Anurag Bansal: "Cloud computing plays an important role in cutting down carbon emissions across industries. In contrast to conventional enterprise configurations, the cloud system effectively transfers workloads from on-premises infrastructure to optimized data centers, achieving a substantial emission reduction of 60 per cent to 90 per cent. The ability to scale cloud resources as needed helps prevent overprovisioning. According to a study conducted by the Lawrence Berkeley National Laboratory and Northwestern University, moving common software applications in the U.S. to the cloud would result in an 87 per cent reduction in energy use."

"Service models like Software as a Service (SaaS) streamline operations by replacing products with software solutions. If cloud technology becomes widely adopted, it has the potential to save up to one billion tons of emissions by 2030. Cloud-based analytics and the Internet of Things (IoT) enable real-time emissions monitoring and system optimization throughout supply chains due to the data storage offered by the cloud. For instance, Uber utilizes Google Cloud to analyze trip data to gain insights on reducing vehicle emissions per ride."

"Moreover, cloud platforms foster collaboration, leading to reduced transportation emissions linked with business travel. Users of Microsoft Teams experienced reductions of over 23,000 tons of CO2 in 2020. Prominent cloud providers, like Microsoft and Google, actively invest in energy sources and carbon offset projects to diminish their carbon footprints associated with cloud services by acquiring energy via Power Purchase Agreements (PPAs)."

"Moving away from fuels and being transparent about our operations, enterprises must continue to work toward improving the energy efficiency of cloud services. Global companies should take advantage of the benefits of cloud technology as AI, the metaverse, IoT, and other cutting-edge technologies become more widespread."

Q: How does data optimization through cloud computing benefit environment sustainability?

Anurag Bansal: "Cloud technology offers ways to enhance sustainability by streamlining data management. Cloud infrastructure can efficiently manage data, resulting in increased storage capacity, improved network efficiency, and lower energy consumption."

"The adaptable nature of cloud systems ensures that resources are utilized when necessary, preventing the issue of over-provisioning seen in traditional, on-site data centers. Cloud computing enables the integration of analytics like machine learning to boost energy efficiency by consolidating data in large-scale facilities. For example, Google employs AI algorithms to enhance cooling effectiveness in its data centers by 40%, decreasing energy consumption."

"Additionally, cloud-based data sharing aids planning through trend analysis and modeling. Cisco forecasts 59 million tons of emissions reduction in cities by 2030 due to sustainability practices driven by cloud-derived insights. Companies like Amazon and Walmart leverage cloud-powered supply chain analytics to optimize logistics with an eye on reducing emissions."

"Furthermore, the adoption of cloud services directly contributes to emission reduction initiatives. Adobe estimates that widespread use of its cloud document services leads to over 22 million tons of CO2e savings. Leveraging cloud storage significantly decreases paper consumption, as demonstrated by Microsoft's findings indicating their file-sharing tools save an average of 12 kg CO2e per user annually. Cloud computing plays a role in decreasing emissions in our economy by allowing for centralized data optimization features."

Q: What do you think is the role of MNCs, such as Google, Microsoft, etc, in this related area? 

Anurag Bansal: "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."

Q: From now on, how do you think the digital revolution will play a role in this?

Anurag Bansal: "The ongoing technological advancements in AI, IoT 5G, and big data analytics play a role in harnessing the sustainability advantages of the cloud. Utilizing cloud-based analytics and modeling allows for monitoring emissions throughout entire value chains and societies. The accessibility of these tools through the cloud empowers organizations of all scales to contribute data-informed insights on sustainability."

"Machine learning integrated into the cloud facilitates autonomous enhancements in energy efficiency across various systems, from data centers to smart cities. The emergence of edge computing and 5G networks facilitates the distribution of energy computing tasks, thereby reducing data transmission needs. The latency 5G connectivity enabled by the cloud enhances vehicle charging efficiency and integration with power grids to ensure a consistent renewable energy supply."

"The IoT, combined with data from interconnected sensors, offers visibility into energy consumption patterns, transportation behaviors, and resource utilization for optimization purposes. Moreover, the virtualization of processes, products, and services by leveraging cloud technology leads to reduced consumption within sectors of the economy."

"The concept of Metaverse presents opportunities to decrease transportation-related emissions through meetings and digital travel experiences. Yet technologies like blockchain, AI/ML, VR, and video streaming that require a lot of data may lead to a rise in the need for cloud computing and energy usage. This calls for efficiency improvements." 

"The digital transformation will provide opportunities for cloud computing to promote sustainability. However, it is critical that companies implement policies and actions to ensure that these technologies impact the climate positively."

Q: Any future predictions?

Anurag Bansal: "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."

Q: What are the best practices for cloud computing to ensure environmental sustainability? 

Anurag Bansal: 'Numerous essential strategies can enhance the benefits of utilizing cloud computing. Cloud service providers must commit to using 100% energy sources for their operations, which can be achieved through power purchase agreements, direct investments, and utility procurement." 

"Moreover, it is crucial to integrate onsite renewable energy sources into data centers. Sustaining energy-efficient server, storage, and network equipment upgrades, in addition to implementing advanced data center designs that minimize cooling demands, aids in the optimization of operations."

"Implementing on-demand resource scaling helps prevent overprovisioning of computing capacity. Cloud companies should offer tools for tracking carbon footprints to assist customers in making choices while prioritizing sustainability in their architecture decisions. Initiatives such as reusing and recycling cloud data center equipment through takeback programs help minimize waste and emissions." 

"Maintaining transparency by reporting on performance indicators related to sustainability, such as energy consumption, water usage, and waste management, promotes accountability."

"Efficiently repurposing waste heat from data centers can help reduce fossil fuel consumption. Moreover, leveraging cloud technology for data analytics can optimize systems, like grids, transportation networks, agriculture practices, and more, to lower emissions and support broader digital initiatives. Furthermore, cloud-based digital services must focus on dematerialization and replacing emission processes with virtual alternatives whenever feasible. Adhering to these practices will enhance the role of cloud computing in promoting sustainability."