Australian businesses unaware of emissions crisis from IT and data centres

In a digital age where data reigns supreme, have businesses considered the carbon footprint emerging from IT and data centres?

The UTS Institute for Sustainable Futures (ISF) in partnership with Pure Storage yesterday released a ground-breaking report which revealed a concerning lack of engagement from Australian businesses about the growing level of carbon emissions caused by IT and data centres.

The report, IT and Data Centre Sustainability in Australia, details the attitudes of more than 100 sustainability managers surveyed in April and May this year. The report exposes a stark reality.

While these managers recognise the imperative of reducing energy consumption in IT and data centres to achieve sustainability goals, they are lacking the detailed data necessary to make informed decisions.

This report is launched after Minister Chris Bowen announced yesterday that Australia will instigate a sectoral carbon budget policy.

Bowen unveiled that there will be a development of sectoral decarbonisation plans for six areas of the economy but failed to include the IT sector. The new report specifically recommends that it should be.

The survey findings reveal that technology plays a critical role in driving sustainability initiatives, with 77% of respondents agreeing that organisations cannot achieve their sustainability goals without significantly reducing IT and data centre energy usage.

With the use of data growing ever more exponentially, including with AI and data centres, it is important that organisations recognise the role their IT and data centres are playing in their emissions footprint.

– Gordon Noble, ISF Research Director

However, the role of IT and data centres in sustainability remains low. While over 70% of respondent organisations had the sustainability of data centres on their radar, only 9% were fully considering it. Alarmingly, 29% of organisations did not consider data centre energy consumption at all.

Another area of concern is the quality of sustainability-related data provided by data centre service operators. Only 5% of respondents felt that the data received was detailed enough, while a significant 46% were not receiving any sustainability-related data at all.

The report insights shed light on the need for organisations to prioritise the reduction of IT and data centre energy usage to achieve sustainability goals. It highlights the lack of attention given to sustainability issues in data centre procurement and the urgent need for data centre operators to improve the quality and availability of sustainability-related data.

“Data centres are exposed to significant ESG risks that have largely escaped the attention of investors and sustainability managers. Improved awareness of data centre sustainability is urgent as we move into a new era where businesses rely even more heavily on data in their businesses and depend on energy and cooling intensive data centres”, says ISF Research Director Gordon Noble.

“There are real and increasing risks for investors, and regulators around uncertainty over how companies manage, account for, and act to reduce their emissions. With the use of data growing ever more exponentially, including with AI and data centres, it is important that organisations recognise the role their IT and data centres are playing in their emissions footprint.”

The report serves as a wake-up call for Australian businesses and policymakers, urging them to prioritise energy consumption in data centres and take proactive steps to address the environmental impact of IT and data storage. 

With the continued acceleration of technology adoption, it is crucial to ensure that environmental concerns are not compromised in the pursuit of innovation.