IT operations have taken the driver’s seat for business success in the rapidly changing digital world.
The success of today’s businesses hinges on many factors, and arguably the most important one involves harnessing the advantages of sustainable technology. It has become imperative for companies to abide by global and regional environmental goals to remain relevant in the global market. For instance, the UAE is making significant efforts to achieve climate goals set by global initiatives and events such as the Paris Agreement, the Sustainable Development Goals and the World Urban Forum. In Dubai, both the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 aim to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050. As such, businesses must adopt the necessary upgrades for cleaner operations, and telcos must provide achievable options for energy-efficient networks to meet the objectives.
Data Explosion Due to Cloud and AI
The excitement around emerging technologies such as Cloud and artificial intelligence is getting stronger by the day. A recent report on the revenue performance of the top four cloud computing companies — Amazon Web Services (AWS), Microsoft Azure, Google Cloud and Oracle Cloud — shows a combined revenue generation of $58.6 billion in Q2 2023, an 18% increase compared to 2022. This is a stark reflection of the growing influence of Cloud in the digital landscape. Similarly, enthusiasm for AI continues to grow, especially given the meteoric popularity of generative AI technology in the enterprise and consumer sectors. As such, semiconductor makers that are integral to the processing of AI functions are reaping the benefits. With such demand for AI services, leading chip manufacturer Nvidia’s adjusted gross margins nearly doubled to 71.2% in its second quarter, and average semiconductor companies’ gross margins have hovered around 50% and 60%. Moreover, according to a recent survey, businesses in the UAE are most likely to use AI in IT operations (97%), followed by cybersecurity (95%).
As such, there has been a marked increase in the growth of data centers — the engines of data transmission across networks. Regarding the ICT sector's impact on the environment, the energy used by these data hubs is a significant concern. The International Energy Agency (IEA) data shows that data centers use 200 TWh of electricity and generate 3.5% of the GHG emissions, the majority of which is utilized within the ITC sector. Studies reveal that data centers alone will use 8% of global electricity by 2030.
However, the good news is that the ICT industry is acutely conscious of the need to reduce its direct and indirect carbon footprint. As per a Boston Consulting Group (BCG) report, most major telcos have signed up to reduce the energy needed per unit of traffic by about 70% by the end of this decade. This action by the ICT industry could eliminate up to 15% of all global emissions by 2030, more than a third of the total emissions reductions needed to meet global sustainability targets, BCG notes. In total, 12.1 gigatons of CO2 could be saved, which is equal to $6.5 trillion.
The choice of greener telecom networks to incorporate fiber optics into their operations is indeed an innovative option to better ensure environmentally responsible usage of communication networks and related sources. In addition, however, the following points also prove integral to achieving a sustainable ICT ecosystem:
Extended Device Use and Reparability: Among the biggest environmental impacts in the mobile industry are the devices that utilize various resources, which further add to the emissions. However, such a challenge can be dealt with through a more circular economy. As such, industry leader GSMA propagates a strategy to move the telecoms industry towards greater circularity — a future where devices have as long a life-span as possible; where they are made with 100% recyclable and recycled content using 100% renewable energy; and where no device ends up as waste. Studies have shown that extending the lifetime of all smartphones on earth by just one year has the potential to save up to 21.4 million metric tons of CO2 emissions annually by 2030 — an amount equal to removing more than 4.7 million cars from the road. Moreover, as telcos look for ways to be more sustainable, industry experts agree that demand for refurbished telecom equipment is likely to increase, driving the value of the market up to £2 billion globally.
Sustainable Manufacturing: To minimize the risk of CO2 generation, the aim should be to provide connectivity with the lowest possible GHG emissions. The goods that are manufactured, supplied, distributed and discarded must do so with the lowest possible carbon footprint.
As such, a suitable strategy would be the use of eSIM instead of traditional SIM cards. Through the use of eSIMs, mobile operators can add additional customers to the network without having to distribute new cards. Doing this greatly cuts the plastic and paper waste generated from packaging and results in lower carbon emissions. Hence, the introduction of eSIM support for smartphones is a step in the right direction toward reducing environmental impact and securing a greener telecom future.
Working with Energy Companies and Partners: Operators can sign up for clean energy power purchase agreements (PPA) with energy companies providing electric power from sustainable sources such as solar and wind energy. Doing this will help operators accelerate their net-zero journey in line with their national green goal objectives. For example, Vodafone has agreed with Iberdrola, one of the world’s largest renewable energy companies, to use 410 gigawatt-hours (GWh) of clean, renewable photovoltaic (PV) solar energy per year in the three countries — Spain, Portugal and Germany.
In the UAE, both operators — e& and du — have vouched for commitments to reach net zero goals by accelerating the decarbonization of activities and focusing on mobile network modernization alongside partners such as Huawei, Nokia and Ericsson with the deployment of the latest generation of energy-efficient radio equipment (both hardware and software), increased use of renewable energy sources and carbon offsetting initiatives. For instance, e& uses a cutting-edge solution that unifies data intelligence and offers organizations a highly automated and comprehensive view of the emission impact of their operations and value chain that allows their customers to make informed decisions regarding their green targets.
Demand for Green Telco Products
As the world’s inclination towards sustainable strategies grows, industry watchers strongly urge ICT companies to put their “green act” together as a priority. The industry should see the sustainability agenda as a prime opportunity to up the ante on their green goals and charge a premium to their young consumers, who are increasingly in sync with such a proposal and share such concerns and commitments toward a more sustainable future.
