Digital Technologies: Clean Cloud, Hefty Bill

Context

Your digital company is evaluating cloud providers. Some operate data centers powered 100% by renewables with high energy efficiency, but their services are significantly more expensive due to costly infrastructure like hydrogen storage. Others rely partly on fossil fuels but offer lower prices and greater stability.

Dilemma

A) Choose renewable-only providers, even if this increases operational costs and reduces competitiveness.

B) Prioritize cheaper, mixed-energy providers to maintain growth.

Summary

Renewable sources are intermittent, and 24/7 clean energy supply requires costly infrastructure like batteries and hydrogen storage. Studies show that achieving full autonomy with renewables is significantly more expensive than drawing from national grids, which often include fossil fuels. Digital companies choosing cloud providers face a difficult trade-off between environmental responsibility and economic viability, especially as completely green solutions currently lack the cost-efficiency of grid-dependent options.

Resources:

• https://ieeexplore.ieee.org/document/10227588
• https://www.unep.org/news-and-stories/story/ai-has-environmental-problem-heres-what-world-can-do-about
• https://arxiv.org/html/2406.05303v1
• https://mitsloan.mit.edu/ideas-made-to-matter/ai-has-high-data-center-energy-costs-there-are-solutions
• https://news.climate.columbia.edu/2023/06/09/ais-growing-carbon-footprint/