Mr. Chairman’s Articles in the Press
The Alarming Ecological Cost of Data Centers.
In recent years, the big tech companies
like Google, Microsoft, Meta, and Apple have been making bold claims about
their efforts to reduce greenhouse gas emissions. However, a closer look
reveals that the emissions from their in-house data centers are significantly
underreported. I would suspect this to be the case given the global explosion
of cloud-based services, all of which are housed in data centers across the
globe. This trend is on the rise as we consume more internet services, with
some analysts stating that the real emissions from these data centers are
likely 662% higher than the declared official figures.
The rise of AI has exacerbated this issue.
AI applications, such as ChatGPT, are far more energy-intensive than
traditional cloud-based applications. For instance, processing a single ChatGPT
query requires nearly ten times the electricity of a Google search. This surge
in energy demand is expected to continue, with data center power requirements
projected to grow by 160% by 2030.
One of the key factors contributing to the
underreporting of emissions is the use of renewable energy certificates (Recs).
These certificates allow companies to claim that they are using renewable
energy, even if the actual energy consumed comes from non-renewable sources.
This practice, known as ‘creative accounting’, results in official emissions
figures that do not accurately reflect the true environmental impact of data
centers.
The discrepancy between market-based and
location-based emissions reporting further highlights the issue. Market-based
figures, which include Recs, often show significantly lower emissions than
location-based figures, which account for the actual energy consumed. For
example, Meta’s official ‘scope 2’ emissions for 2022 were reported as 273 metric
tons of CO2 equivalent, but the location-based figure was over 3.8 million
metric tons.
As the demand for data centers continues
to grow, it is crucial for tech companies to adopt more transparent and
accurate methods of reporting their emissions. This includes phasing out the
use of Recs and adopting proper environmental accounting measures which I
called for three decades ago. Only then we truly can understand and mitigate
the true environmental impact of the tech industry.
The Biden-Harris Administration has
announced new actions in 2024 to detect and reduce major climate pollutants, as
part of their ongoing efforts to tackle climate change. These updates reflect
the ongoing efforts and progress in reducing GHG emissions globally. However,
we must strive to implement environmental accountability to fully grasp the
impact of the tech industry. This requires robust accounting practices that
enable companies and governments to accurately report and understand
environmental costs and liabilities.
In 1999, I led the creation of a
comprehensive report titled ‘Accounting and Financial Reporting for
Environmental Costs and Liabilities’ with international experts. This
initiative was under the Arab Society of Certified Accountants (ASCA), which I
founded in 1984, and was produced in collaboration with the United Nations and
International Standards of Accounting and Reporting (ISAR), which I chaired.
As the Chair of the Consortium for
Sustainable Urbanization, I urge those in position of authority to revisit this
important work to help reduce ‘creative’ carbon accounting, and put it in
practice that will hold these firms properly accountable. We all must take
responsibility, as the world is crying out for real change to help it recover
from all the damage carbon pollution has been causing.
Talal Abu-Ghazaleh
29 Jan 2023
The digital future of Jordan in the 5G era.
Magazine Name: Gulf Today
Article Link: View
08 Jan 2023
Feeding 8 Billion People.
Magazine Name: Arab Economys
Article Link: View
08 Jan 2023
Feeding 8 Billion People.
Magazine Name: Gulf Today
Article Link: View
07 Dec 2022
A Call for A Democratic International Order.
Magazine Name: Arab Word
Article Link: View
01 Dec 2022
A Call for A Democratic International Order.
Magazine Name: Arab Australia Magazine
Article Link: View
01 Dec 2022
A Call for A Democratic International Order.
Magazine Name: Arab economic
Article Link: View
01 Dec 2022
A Call for A Democratic International Order.
Magazine Name: Emirates Business
Article Link: View
