The climate impact of digitalization is complex – while new technologies bring efficiency and innovation, they also come with significant environmental costs. What are the potentials, and pitfalls, of new technologies? As a company building digital tools to drive climate action, that question has been racking our brains here at Deedster.
So, is digitalization helping or obstructing climate action? We took a deep dive into this digital dilemma in the latest addition to our content library, the Digitalization challenge. The conclusion? There’s no simple answer.
Our Digital Carbon Footprint
Let’s begin by getting a sense of the climate impact of digitalization: the world’s digital carbon footprint is around 4% of global greenhouse gas emissions, similar to the aviation sector. That said, the emissions from air travel are caused by a small share of the global population. Far more of us contribute to the digital carbon footprint.
Growing energy demand
The digital sector consumes up to 12% of our global electricity, and that number is growing. Fast. The International Energy Agency (IEA) estimates that by 2026, the electricity demand from data centers, AI, and cryptocurrencies could double.
This rising demand poses a serious challenge: if the climate impact of digitalization is not properly managed its energy use will continue to escalate, making it harder to meet global climate goals. In fact, the greenhouse gas emissions of major tech companies like Google and Microsoft are rising, primarily due to the increased energy consumption of their data centers.
Hidden water cost
Beyond carbon, digitalization also has a big water footprint. Google alone uses 15,000 times more water in a single year than a family of four consumes in a decade. Why, you ask? Data centers require immense amounts of water for cooling, and it must be clean drinking water as any impurities could damage the servers. And AI servers have even greater power densities, so their cooling demands are even higher.
Digitalization for Climate Action
While digitalization is contributing to rising emissions today, its potential to mitigate climate change in the future is promising. In fact, digital technologies could reduce emissions in the energy, materials, and mobility sectors by up to 20% by 2050!
We’re certainly seeing signs of the potential of new technologies to do some good in the fight against climate change:
- Enhancing energy solutions: AI can make energy grid calculations 12 times faster, saving valuable time for system operators.
- Smarter homes: Smart thermostats help reduce home energy use by 15%.
- Adaptive traffic signals: AI-powered traffic lights have already shown up to 40% reductions in travel times in some areas.
These new and exciting technologies make it easy to forget about the increase in energy consumption, which they must offset for there to be an actual emissions reduction. If not carefully managed, the climate impact of digitalization could continue to worsen despite its sustainability potential.
So, does digitalization help or hinder climate action?
There really is no simple answer to this question. Or rather, the simple answer would be both. On one hand, the rapid growth of digital technologies is increasing electricity demand, water use, and emissions. On the other hand, these same technologies can improve energy efficiency, optimize resource use, and help us reduce emissions in key sectors.
Will the benefits eventually outweigh the environmental costs? That’s the million-dollar question. But one thing is clear: how we manage the digital transition will determine whether it ultimately helps or hinders global climate action.
Want to engage your workforce on this topic?
At Deedster, we help companies turn sustainability awareness into action. If you’re interested in educating and engaging your employees in sustainability through our Digitalization challenge, or any of our other challenges, please get in touch!
FAQ
- Do AI-powered tools have a greater climate impact?
Yes! AI-generated responses consume more energy, and AI models also require training that increases electricity and water consumption. - Is digitalization always bad for the climate?
Not necessarily. While it increases energy demand, digital solutions can also drive sustainability, for instance by optimizing supply chains, reducing travel through virtual meetings, and enabling smart energy management. - How can companies reduce the environmental impact of digitalization?
Businesses can opt for green cloud providers, optimize data storage, and implement energy-efficient hardware and software solutions to reduce their digital carbon footprint. - How can individuals reduce their digital carbon footprint?
One of the top things we can do as individuals is to extend the lifespan of our devices and choose refurbished and energy-efficient products. On a more daily basis, we can reduce unnecessary digital activities such as background streaming, unsubscribe from unnecessary email lists, and delete unused cloud files.
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