The ongoing evolution of technology has prompted a critical examination of the environmental impact associated with digital devices and data centers. The European Union’s Corporate Sustainability Reporting Directive (CSRD) makes it mandatory for around 11,700 companies to report on their emissions. This is all in line with a broader international effort to fight climate change. This new SEC requirement underscores the important moment we are in with respect to demand for transparency around corporate sustainability practices. Furthermore, significant investments in alternative energy sources, such as Microsoft’s commitment of billions towards nuclear power for artificial intelligence workloads by 2025, reflect a shift towards more sustainable operational strategies.
The tech sector has long avoided a hard truth regarding its new love affair with carbon emissions. A new report shows that data center operations account for a shocking 24 percent of all total emissions. Though this figure is significant, it is nothing compared to the emissions produced by end-user devices. The production of one smartphone generates approximately 50 kg of CO2e. This further underscores the heavy environmental footprint of consumer electronics.
Emissions from Devices Outweigh Data Centers
Initial data from the biggest global tech companies indicates that end-user devices produce 1.5 to 2 times more carbon than all data centers put together. This gap is concerning to say the least. Data centers only contribute to 40 percent of total IT emissions, whereas devices make up 60 percent. Devices have a high carbon footprint, with embodied carbon from their production process making up an incredible 45 percent. That’s because well over half of their emissions are from the production process.
According to research, about three-quarters of a device’s emissions happen at the manufacturing stage. This finding underlines the need to address all carbon emissions associated with devices by prioritizing production processes and lengthening device lifecycles. Just extending the average smartphone lifecycle from two years to three can help make a pretty big dent. It would reduce annual emissions from manufacturing by an historic 33 percent. These measures would result in a drastic reduction in the sector’s net carbon emissions.
Smartphone replacement annually approaches 1 billion. This shocking figure results in a projected 50 million tonnes of CO2e emissions, showing us that we need to take quick action to solve this issue. Even though data center embodied carbon gets all the attention, it’s 16 percent of the total, compared to 45 percent for device embodied carbon. This underscores just how important consumer behavior is to affecting our environmental footprint.
The Role of Data Centers and AI Workloads
Data centers are rapidly changing as new technologies develop and demand continues to grow, especially in regard to artificial intelligence (AI) applications. Projections by our institutions found that AI workloads are massively driving up energy consumption. By 2028, they’re projected to consume 6.7%-12% of the electricity in the U.S. As a result, operators are under increasing scrutiny to improve energy efficiency and lower the carbon footprint.
Firms such as Google have published their own successes with energy efficiency. As of 2024, their data centers are currently 1.5x the industry average in terms of efficiency. This claim is part of a larger pattern from tech giants looking to create more sustainable corporate infrastructures. Elsewhere, like in data centers, embodied carbon represents roughly 40 percent of emissions. The other 60 percent comes from the day-to-day operations.
The challenge remains significant: data center servers are typically replaced every five years, leading to substantial embodied carbon contributions. To maximize operational efficiency, work on finding the best strategies to implement and do so effectively. Simultaneously, try to reduce embodied carbon during manufacturing and replacement cycles.
Initiatives and Future Directions
Several initiatives have formed in the classrooms and boardrooms to combat these inequities in the tech world. Initiatives like GreenSKUs prove that more than an 8 percent reduction in embodied carbon is possible. With directed time and effort we can do better. Together, these initiatives stress the critical role that innovation and collaboration between companies play to advance sustainable business practices.
As more businesses comply with the CSRD, transparency in reporting will play a crucial role in spurring action against excessive emissions. By understanding and addressing their carbon footprints, corporations can drive positive change not only within their own operations but across the entire industry.