Shaping the Future of Decarbonized Data

The year 2050 looms large in sustainability circles. That’s the year when hundreds of companies—including many of the world’s largest carbon emitters—have committed to achieving net zero carbon emissions and align with the United Nations’ Sustainable Development Goals. 

But committing to do something is one thing; actually accomplishing it is another. Recent research from NTT found that of 500 large enterprises surveyed, 68% acknowledged that they were behind schedule in getting to net zero emissions, and 95% weren’t reducing their greenhouse gas emissions by the rate necessary to hit their targets by the middle of the century.

These findings suggest that many firms view reducing their emissions as a linear exercise. But getting to net zero isn’t a straight path, and many companies that NTT surveyed did not consider how factors like economic and social upheaval, supply chain disruptions and carbon offset markets could impact their emissions. These and other factors make for a costly transition: BloombergNEF estimates that a fully decarbonized energy system by 2050 could come with a $215 trillion price tag. The most glaring oversight, though, may be that many companies underestimated increased energy demands from data usage, which the study found accounts for up to 20% of a company’s carbon emissions.

When British mathematician Clive Humby said “Data is the new oil” in 2006, he may not have known how prescient those five words would prove to be. The increased volume of data that is feeding machine learning algorithms and AI applications has transformed business—and has also made reducing emissions that much more difficult: 65% of the technology leaders surveyed by NTT said that their company’s large increase in data usage makes it difficult to achieve their net zero goals. 

But that challenge may offer the seeds of its own solution. Companies across sectors are starting to use analytics and AI to reduce their carbon emissions, potentially mitigating much of the impact of the massive spike in data usage. AI models can now help firms identify the functions that are producing the bulk of their carbon emissions, predict where energy demand will be highest and develop solutions to maximize efficiency. The use of AI is especially prevalent among the companies that are closer to achieving their 2050 goals: 39% of these leading firms use AI for net zero decision support, while only 28% of other firms do the same.

The leaders in emissions reductions are focusing on making computing and network infrastructure more sustainable. Data centers are already one of the world’s biggest energy users, with the Electric Power Research Institute projecting that data centers could consume up to 9.1% of US electricity by 2030. More than half of the leading companies that NTT surveyed said that reducing emissions from data centers was a high priority. 

Usage of advanced technology—like photonics, which has the potential to completely transform the way data is transmitted within computers and between data centers—is also common among those closer to reaching their net zero goals. Photonics uses light instead of electrical signals to communicate—a faster, more efficient and more sustainable way to meet the growing global energy demand for the AI infrastructure of the future. A quarter of those leading the way in emissions reductions said they use photonic networks, while only 11% of those lagging behind said the same.

Companies are falling behind in their sustainability commitments. Advancements in technology, including AI, have amplified energy demands, and NTT’s research shows that many firms are struggling to maintain their pace on the path to net zero emissions. But technology also has the potential to right the course. Artificial intelligence, advanced analytics and innovations like photonics are all integral components of a more productive push toward a carbon-neutral future.

The companies leading the way know the powerful potential of technology to reduce emissions, and these firms will play a vital role in trailblazing a path that can accelerate the trajectories of those falling behind. By leveraging advanced technology, the net zero gap may well begin to close.