Digital Sustainability: Unveiling the Hidden Environmental Cost
Khusbu Agrawal
Khusbu Agrawal (the “Valuer”) is a Fellow Member of the Institute of Company Secretaries of India (ÏCSI) having membership No. F11833. The Valuer is registered with the Insolvency and Bankruptcy Board of India (Registration No. IBBI/RV/03/2021/14393) to undertake the Valuation of Securities and Financial Assets of the Companies. She has more than 8 years of experience in Corporate law, merger & acquisitions. She has also done LLB, Master’s in Commerce and Master’s in journalism & Mass Communication. Further, Ms. Khusbu Agrawal has done post qualification course i.e. Certificate Course on Intellectual Property Rights conducted by ICSI. She is a qualified Independent Director and Social Auditor.
In a world increasingly driven by digital transformation, sustainability discussions have expanded beyond physical industries like manufacturing, agriculture, and transport. The digital ecosystem—once hailed as the green alternative to paper-based and manual systems—is now being scrutinized for its less visible but significant environmental footprint. From cloud computing to streaming, every digital interaction has a carbon cost that society often overlooks. This evolving concept is known as digital sustainability.
Understanding Digital Sustainability
Digital sustainability refers to minimizing the environmental and social impact of digital technologies throughout their life cycle—development, usage, and disposal. While digital innovation has improved operational efficiency and reduced dependence on physical infrastructure, it has introduced environmental challenges. The convenience of virtual communication, cloud storage, and online shopping masks an energy-hungry digital infrastructure powered by vast data centers, complex server farms, and growing demand for electronic devices.
The Invisible Carbon Trail of the Digital World
Every click, stream, and search query contributes to energy consumption. Data centers—the backbone of the internet—require substantial electricity to run continuously and maintain optimal temperatures through cooling systems. According to the International Energy Agency (IEA), data centers account for nearly 1% of global electricity use, and this number is steadily increasing.
For example, the global streaming of videos and music generates emissions equivalent to billions of kilometres driven by a car annually. High-definition video streaming, especially in 4K or higher, uses significantly more data, which in turn demands more power to transfer and store. Similarly, emerging technologies such as AI, blockchain, and cryptocurrency mining are intensifying energy consumption due to the computing power they require.
The E-Waste Dilemma
Another hidden consequence of digitalization is electronic waste (e-waste). Rapid tech upgrades, short product lifecycles, and consumer demand for newer gadgets contribute to an ever-growing pile of discarded electronics. According to the Global E-waste Monitor 2024, the world generated over 60 million metric tonnes of e-waste in 2023, and only a fraction of this was formally recycled.
E-waste contains hazardous materials such as lead, mercury, and cadmium, which pose significant health and environmental risks when improperly disposed of. Informal recycling, prevalent in developing nations, often involves unsafe practices like open burning, further polluting air and water sources.
Digital Infrastructure: A Double-Edged Sword
While digital technology has enabled smart energy management, telecommuting, and automation—contributing positively to sustainability—its infrastructure also demands huge material and energy inputs. Laptops, smartphones, routers, and servers are manufactured using rare earth metals, mining of which causes environmental degradation and human rights issues in some regions.
Moreover, the transition to 5G and IoT (Internet of Things) will multiply the number of connected devices, leading to exponential growth in data traffic and resource consumption. As homes, vehicles, cities, and industries become more interconnected, the pressure on the digital backbone—and consequently on the environment—will escalate.
Cloud Computing and Greenwashing
Many businesses promote cloud computing as a green alternative to on-site hardware, claiming reduced energy use and carbon emissions. However, this benefit is context-dependent. The sustainability of a cloud solution largely depends on the data center’s energy source—whether it is coal-powered or run on renewable energy.
Tech giants like Google, Amazon, and Microsoft have committed to carbon-neutral goals and renewable energy investments, but not all data centers follow suit. Furthermore, terms like “green cloud” or “carbon neutral” can sometimes be used as greenwashing—where environmental claims are exaggerated or misleading.
Artificial Intelligence: Efficiency vs. Emissions
Artificial intelligence (AI) holds promise for optimizing energy usage, reducing waste, and enabling smart logistics. Yet, training a single AI model, particularly deep learning models, can emit as much carbon as five cars in their entire lifetimes. The paradox lies in AI’s dual role—it’s both a tool for sustainability and a contributor to digital emissions.
This environmental impact calls for more energy-efficient algorithms, localized training models, and AI governance that integrates environmental criteria during development and deployment.
Towards Responsible Digital Consumption
Digital sustainability doesn’t just rest with tech companies or policymakers—it involves users, too. Every individual has a role in managing their digital carbon footprint. Practices such as:
- Deleting unused emails and files from cloud storage
- Turning off video when unnecessary during virtual meetings
- Extending the life of electronic devices instead of frequent replacements
- Using devices in energy-saving modes
- Choosing companies and services that prioritize sustainability
- Contributing to a more environmentally conscious digital presence.
Policy and Regulatory Support
Governments and global organizations are beginning to recognize the need for sustainable digital development. Policies around eco-design, right to repair, and sustainable procurement are gaining momentum. For instance, the European Union’s Circular Economy Action Plan emphasizes making electronic devices more durable and easier to repair and recycle.
Carbon labelling for digital services, like electricity usage disclosures for websites or streaming platforms, can help consumers make informed decisions. Similarly, stricter regulations on e-waste management and incentives for green data centers are crucial to achieving digital sustainability.
A Balanced Digital Future
Digital technologies are indispensable to modern society. They empower businesses, enhance connectivity, and drive innovation; however, without a mindful approach, such convenience comes at a significant ecological cost.
Sustainability in the digital era means rethinking how we design, use, and discard digital resources. It requires collaboration between technology developers, governments, businesses, and end-users to ensure the long-term health of both our digital systems and the planet.
As we advance further into the age of AI, automation, and immersive experiences, digital sustainability must be embedded into our core strategies. Ignoring the environmental cost of our digital lives risks undermining the very progress we seek to achieve.
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