The importance of sustainable digitisation and the impact of AI

Context setting

The twin transition is a concept that describes the interconnected nature of the digital transformation and the climate transition. It emphasises that these two transitions are not mutually exclusive but rather mutually reinforcing. If you are not familiar with it, there are some good materials (including a playbook to help you develop a twin transition strategy) here.

As explained in the article linked above, the twin transition typically focuses on unlocking the potential of technology and data solutions to accelerate sustainability impact (greening BY technology and data), and applying sustainable thinking to minimise the footprint of technology, data assets, and infrastructures (greening OF technology and data). This article focuses on the latter.

The environmental implications of digitalisation

As digital transformation accelerates, so does the demand for energy, raising concerns about the environmental impact of data centres and the energy consumption associated with digital technologies, particularly artificial intelligence (AI). While digitalisation offers immense benefits for society, it is crucial to address the associated energy consumption and its environmental consequences.

The International Energy Agency (IEA) estimates that global data centre electricity consumption is projected to reach 310-410 exawatt-hours (EWh) by 2030, up from 140-180 EWh in 2020. This exponential growth in data centre energy consumption poses a significant challenge to meeting global climate goals.

AI, a crucial driver of digital transformation, further exacerbates the energy consumption challenge. AI algorithms are computationally intensive, requiring vast amounts of data and processing power, leading to higher energy demands. A 2020 study by McKinsey estimated that AI could increase global electricity demand by 14% by 2030.

The environmental implications of increased energy consumption for digitalisation are substantial. Data centers are responsible for 0.3% of global electricity consumption, but their carbon emissions are significantly higher due to the reliance on fossil fuels. According to the IEA, data centre emissions could reach 1.4 gigatonnes of CO2 by 2030, equivalent to the emissions of Poland.

Driving a sustainable digital transformation

To address these challenges, it is essential to adopt a twin transition approach that can enable the development of sustainable practices and technologies in the digital realm. This includes:

1. Optimising data centre efficiency: Using energy-efficient hardware and software, improving cooling systems, and utilising renewable energy sources can significantly reduce data centre energy consumption.
2. Emphasising data compression and storage optimisation: Reducing the amount of data stored and transmitted can lower data centre energy demand.
3. Leveraging AI for energy management: AI algorithms can optimise energy consumption patterns and predict energy demand, enabling proactive measures to reduce energy usage.
4. Promoting responsible AI development: Integrating environmental considerations into software development can encourage the creation of more energy-efficient and sustainable applications.
5. Pioneering renewable energy-powered data centres: Investing in renewable energy sources like solar and wind power can significantly reduce the carbon footprint of data centres.
6. Adopting cloud computing and virtualisation: Cloud computing allows for shared resources and efficient data storage, potentially reducing overall energy consumption.
7. Promoting sustainable digital consumption: Encouraging users to adopt more sustainable digital habits, such as using video conferencing tools instead of physical meetings, can reduce overall digital energy consumption.

The growing demand for energy in the digital age necessitates a concerted effort to address the environmental impact of digitalisation. By adopting a twin transition approach to develop sustainable practices and technologies, we can harness the benefits of digital transformation without compromising the planet's future.