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IT leaders weigh the climate impact of cloud infrastructure choices

Thu, 16th Oct 2025

The emergence of AWS in 2006 was one of the most prominent landmarks in the history of technology. Initially, many companies felt as though it was too good to be true. Not only did cloud infrastructure enhance security, but the proliferation of this sector, which quickly spiralled into a multi-billion-dollar standalone industry, also effectively allowed companies to lower their costs. 

In the following nearly two-decade period, many companies have opted for pay-as-you-go models. This led to a smaller need for an in-house IT team and secure, physical data storage, as it could be outsourced to the cloud. Now, once the dust settles and companies start to entrust cloud infrastructure companies with all sorts of incredibly valuable data, some of the negatives have arisen. 

This ranged from being specifically targeted by cybercriminals to supply chain attacks and problems for international companies that had cloud storage contracts with companies in multiple regions. However, one of the main problems that has emerged now that cloud infrastructure companies are well-established is their impact on the climate, which is what we will be delving into today. 

Shifting to carbon-aware computing 

IT leaders and tech giants have not amassed trillions of dollars in profits by simply sitting on their hands. However, the climate impact of cloud infrastructure is one of the most significant costs for corporations. As a result, they're more than willing to listen to ideas on how to minimise their impact. 

Carbon-aware computing is the first port of call for many. In a nutshell, it's a shift in mindset, ensuring that greener energies are utilised whenever available, and adapting working practices to accommodate this. Some examples include corporations based in countries that get a lot of sunlight switching to solar options or using real-time electricity data to ensure they are being as efficient as possible. 

Another key aspect of carbon-aware computing is to shift data centres to countries or regions where cleaner energy is more accessible and cheaper to use. Again, though, it's a whack-a-mole style problem for big IT companies. 

A study by Goldman Sachs stated that a ChatGPT search uses 10 times more electricity than a Google search. They anticipate that carbon emissions from data centres will double between 2022 and 2030, primarily due to the growth of AI. 

So, while switching to carbon-aware computing and greener ideas for data centres comes from a place of wanting to do good, it's a multi-faceted issue that unfortunately doesn't have a simple answer or solution.

Balancing the pros & cons

Now that issues with digital emissions and the increasing threats of sophisticated cybercrime, emerging due to AI, are causing alarming numbers of people to become vulnerable to online criminals. One study revealed that nearly 30% of people in Australia and New Zealand have fallen victim to online scams. This number is, unfortunately, expected to rise as criminals continue to utilise the latest technology for their own gain. 

Weighing up the climate impact of cloud infrastructure should not result in compromising other areas of it. Using greener data centres in other countries could help, but if they're situated in areas where cybercriminals operate, then it could make them a target. 

The scale of emissions from Big Tech is mind-blowing. Although cloud infrastructure has showcased significant positives over the last two decades, its increasing role in the world of AI is likely to send emissions skyrocketing. ESG targets are all well and good, but it needs to be a collaborative, transnational effort; it's not just down to smaller companies in New Zealand, it's the monumental emissions in the US and China that need to be curbed significantly. 

Yes, the development of the Carbon Neutral Government Programmeme is a step in the right direction. IT leaders will always sit up and take notice if there's an idea or strategy to reduce their emissions significantly. 

Final thoughts

Still, with so many other angles to consider, and the eye-watering amount of emissions that come from other nations that do not seem to be set on reducing their emissions by anywhere near the level they should be, it's going to be a significant uphill struggle. 

IT leaders in NZ who are laser-focused on doing the right thing to mitigate their climate impact could have the best intentions and make the right decisions. Still, if they are being overshadowed by economies that are 50 times bigger and refuse to address their climate indiscretions, then it's going to hit a ceiling at some stage. 
 

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