Oluwaseun Dania is the managing director of Alpha-Geek Technologies.
As the world grapples with the pressing issue of climate change, it’s impossible to overlook the environmental cost of the ever-growing tech industry. Technology is a ubiquitous part of our lives; we couldn’t live without our phones, laptops, electric cars and camera-enabled security systems. But behind every technological device is a pull on the electrical grid.
While tech makes our lives easier and more efficient, our need for it continues to grow at an exponential rate. As new technologies emerge, like artificial intelligence (AI), blockchain and the Internet of Things (IoT), more power is required to keep up with consumption.
Data centers—the physical locations at the heart of cloud storage, systems and applications—are significant contributors to global energy consumption and greenhouse gas emissions. As AI becomes more ubiquitous, the demands for power will increase exponentially. According to Goldman Sachs, a ChatGPT request consumes 10 times the energy of a Google search, and that data center power demand will grow by 160% by 2030. By then, the report posits, carbon dioxide emissions by data centers will more than double what they were in 2022. A Morgan Stanley report projects that, by 2030, global data center emissions will amount to about 40% of what the U.S. emits each year.
The reality is that every breakthrough we make in the tech industry comes at a cost. As gloomy as it sounds, however, sustainability is not out of reach. In fact, technology can be part of the solution.
By leveraging technology to minimize environmental impact, we can reduce our carbon emissions, enhance energy efficiency and help move toward a future that doesn’t require escaping to Mars.
Technology: The Problem And The Solution
The tech industry, despite its contributions to climate change, has the potential to reverse course and help create a more sustainable world. As tech leaders, we have a responsibility to not only push forward with technological advancements but also to think critically about their long-term implications.
New technologies require vast amounts of energy, which often comes from non-renewable sources. When building new data centers, for example, we can dramatically decrease our carbon footprint if we transition from relying on fossil fuels to using renewable energy sources like solar, wind or hydropower. We can also employ better management practices to reduce waste generated by the inefficient use of electricity.
Another crucial focus area is the logistics and supply chain side of the tech industry. If we can source locally and use more sustainable transportation options, such as electric vehicles for deliveries, we can reduce our overall carbon emissions. We can also implement automation in the manufacturing sector. For example, sensor technologies can monitor and manage resources in real time, allowing businesses to reduce waste and optimize production.
AI and blockchain are also powerful tools in driving sustainability. For example, AI can analyze massive datasets to identify inefficiencies, helping businesses make smarter, more energy-efficient decisions. Blockchain can be used for transparent supply chain tracking, ensuring that every step in the process adheres to sustainable practices.
Tech business leaders also have a unique opportunity to shift from the old “make, use, dispose” model to a circular approach that drives both sustainability and profitability. When products are designed for durability, repairability and reuse, they extend a product’s life cycle while dramatically reducing waste. Circular practices help cut costs, strengthen supply chains and meet growing consumer and investor demand for sustainable solutions. In today’s economy, those who lead on circularity are the ones who stay ahead.
Overcoming Resistance
One of the biggest challenges companies face in achieving both innovation and sustainability is the resistance to change. Legacy systems and traditional business practices often make it difficult to adopt new, more sustainable methods. Another challenge lies in bridging the knowledge gap. Many organizations struggle to understand the complexities of new technologies like AI, IoT and blockchain.
To overcome these barriers, it’s essential to start small, implementing sustainability initiatives in manageable, incremental steps. Use available resources to learn about new technologies and understand their return on investment. Scale slowly and intentionally. Adopt a long-term vision and embed sustainability in your corporate strategy, with clear milestones and measurable goals for achieving net-zero emissions and other sustainability targets. Incentivize sustainability champions within your organization, to build a culture that rewards environmental stewardship.
Green Is The New Gold
Sustainability and innovation are not mutually exclusive. Companies that integrate sustainability into their core strategies are not only contributing to a healthier planet but also positioning themselves for long-term success. Green is the new gold. The future of business—and the planet—depends on how we manage the present. Embracing green tech now is crucial not only for our own survival but also to guarantee survival of future generations too.
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