Why everyone thinks public clouds are greener

Public cloud data centers, such as those operated by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, are often seen as more sustainable than private ones—stemming from their ability to leverage large-scale infrastructure—which is believed to lead to better environmental outcomes.

Public clouds can reduce their carbon footprint by using clean energy sources and improving water usage efficiency. These centers often feature advanced cooling technologies, more efficient hardware, and optimized operational processes that minimize waste.

The central idea is that migrating to the public cloud allows organizations to tap into these optimized infrastructures without needing to invest in their own.

Many businesses move their workloads to public clouds to take advantage of these perceived benefits. The scale of public cloud providers gives them access to energy-efficient facilities, many of which are designed to consume less power and water.

Some public cloud data centers even adopt cutting-edge technologies like AI-driven cooling systems, which can further reduce energy consumption by dynamically adjusting cooling needs—often resulting in better resource utilization, which in turn translates to lower operational costs and reduced environmental impact.

When public clouds aren’t the green solution you think

While public clouds often present an image of superior sustainability, they aren’t always the most environmentally friendly choice. Specific scenarios exist where private data centers can achieve equal or even greater sustainability outcomes.

For example, a private data center situated in a region with abundant renewable energy sources or an enterprise that already uses green technologies might perform as well as, if not better than, a public cloud facility.

Not all public cloud data centers are equally sustainable; some may still rely on non-renewable energy or have less efficient resource management practices.

To develop an optimal sustainability strategy, businesses must consider these exceptions. Assessing factors like location, energy sources, existing infrastructure, and specific workload requirements is key.

For example, a company with a data center in a region with access to cheap and plentiful hydroelectric power might find it more sustainable to maintain its facility rather than migrating to a public cloud that uses a mix of renewables and fossil fuels.

How public clouds slash carbon footprints compared to private data centers

Public cloud data centers typically excel in carbon efficiency. According to research from IDC and Amazon Web Services, these facilities are approximately 4.7 times more carbon-efficient than private enterprise data centers.

Differences here primarily arise from several factors, including better energy management, newer and more efficient equipment, and superior data center design. Public cloud providers also optimize server usage to make sure more workloads run on fewer servers, reducing overall power consumption.

While AWS’s involvement in the study could imply some bias, the data aligns with broader industry findings that highlight the energy and carbon savings public clouds can offer. Most public cloud providers are continuously investing in sustainable technologies and practices.

For example, hyperscale data centers often incorporate advanced power and cooling techniques, such as free-air cooling and liquid cooling, which greatly reduce energy consumption compared to traditional methods.

The biggest green wins for public cloud data centers

Why bigger data centers mean greener operations

Hyperscale public cloud data centers, which usually exceed 100,000 square feet, benefit greatly from economies of scale. Larger facilities can spread their fixed energy and water consumption over a much larger number of servers and workloads, making them inherently more sustainable.

For instance, one 100,000-square-foot data center is typically less environmentally damaging to construct and operate than two separate 50,000-square-foot centers due to reduced duplication of infrastructure and more efficient resource allocation.

The operational scale also means that these large data centers can purchase energy in bulk at lower rates, often from renewable sources, which further enhances their sustainability profile. Hyperscale data centers often use high-efficiency power distribution and cooling systems that lower the carbon footprint per unit of compute power.

The secret to sustainability lies in sharing

Public cloud data centers let multiple businesses share a common infrastructure, leading to major sustainability benefits. When multiple clients use the same servers, storage, and networking resources, it maximizes the use of each server and reduces the need for additional hardware—making sure fewer servers are left idle, which translates to lower overall carbon emissions.

Public cloud providers, on the other hand, can dynamically allocate resources to make sure hardware operates closer to full capacity, driving efficiency.

In contrast, private enterprise data centers often suffer from underutilization. Many companies maintain excess capacity to handle peak demand, which means that a substantial portion of the data center’s infrastructure may remain idle for most of the time, wasting energy and space.

How public cloud giants dominate renewable energy markets

Large public cloud providers have a major advantage when it comes to renewable energy sourcing. Due to their scale and purchasing power, they can secure renewable energy contracts at more favorable rates than smaller, private data centers.

For example, cloud giants like AWS, Microsoft, and Google have all committed to operating on 100% renewable energy within the next decade, and they are investing heavily in wind, solar, and other renewable projects to meet this goal.

It’s important to note, however, that not all public cloud data centers currently use renewable energy. Availability and cost of renewables can vary greatly by location, and some cloud data centers still rely on traditional energy sources.

That being said, public cloud providers generally have greater access to renewable energy sources than private data centers, thanks to their size, market influence, and commitment to sustainability.

Surprising ways private data centers can outshine public clouds

How reusing buildings can make private data centers greener

Repurposing existing buildings for data centers often presents a sustainable advantage for private data centers. Through avoiding the construction of new facilities, businesses can greatly reduce the carbon footprint associated with construction materials and processes.

Reusing existing buildings also minimizes land use and the environmental disruption that new construction typically causes.

While hyperscale data centers could theoretically also reuse buildings, this is less common due to their larger capacity needs. Private data centers, with their smaller scale, are more often able to adapt existing structures. This approach is particularly beneficial in urban settings, where space is limited, and new construction may face regulatory and logistical challenges.

Why private networks could have the sustainability edge

Edge data centers provide another potential sustainability advantage for private data centers. These smaller facilities, strategically located closer to the end-users, reduce the need for long-distance data transmission, which can consume significant energy.

Placing edge data centers in areas with abundant clean energy or water resources helps private networks to capitalize on local renewable resources more effectively than a centralized public cloud facility might.

Edge data centers are generally more relevant for private networks than for public cloud providers, which tend to concentrate their infrastructure in a few large locations. For businesses that need to minimize latency and maximize local energy efficiency, edge data centers can provide a more sustainable option.

How IaaS is changing the game for private data centers

Deploying Infrastructure-as-a-Service (IaaS) within private data centers helps companies benefit from the same shared infrastructure model that public clouds use.

Through pooling resources and enabling multiple applications or departments to share the same hardware, private data centers can achieve higher utilization rates, reducing the number of servers required and thereby lowering carbon emissions.

IaaS in private data centers also enables more flexible resource management, helping companies scale resources up or down as needed, similar to public cloud environments. Flexibility here helps prevent over-provisioning, where servers remain idle and consume power without doing useful work, ultimately improving overall sustainability.

Why more control could mean more green for private data centers

Companies can choose the most energy-efficient hardware, implement advanced cooling solutions, and customize their data center operations to minimize energy consumption. This control also extends to software optimization, where businesses can deploy custom applications and platforms that are designed to run more efficiently in their specific environment.

When managed effectively, this level of control can result in sustainability gains that are harder to achieve in a public cloud setting, where standardized infrastructure limits customization. Private data centers can thus align their sustainability practices more closely with their unique operational needs and sustainability goals.

How to decide which data center strategy is best for the planet

Why public cloud is the fast lane to a greener future

For many businesses, moving to a public cloud remains the quickest and most straightforward way to improve data center sustainability.

Public clouds offer instant access to advanced, energy-efficient infrastructure, renewable energy sources, and scalable resources without the need for significant upfront investment.

Companies can reduce their carbon footprint and improve energy efficiency rapidly by shifting workloads to public clouds that have already made substantial commitments to sustainability.

Hidden sustainability perks of keeping data centers private

Before committing to the public cloud, businesses should carefully evaluate the unique sustainability benefits that private data centers can offer. These typically include reusing existing buildings to lower the environmental cost of new construction and deploying edge data centers in areas rich in renewable resources.

Companies with specific needs or those located in regions with abundant green energy might find that private data centers offer a better path to sustainability, especially if they leverage their control over hardware and infrastructure to optimize energy use and minimize waste.

Final thoughts

As the pressure to operate sustainably intensifies, where does your brand stand in the balance between public cloud convenience and private data center control? Are you ready to fully explore which path truly aligns with your unique goals, values, and environmental commitments?

The choice you make today could redefine your market position tomorrow—so how will you decide to shape your brand’s future in a world demanding more from every watt and byte?

Tim Boesen

October 8, 2024

8 Min