As operators seek to balance rapidly rising connectivity demands with the need for ecologically sustainable practices, energy management has emerged as a key priority for the telecom sector. Already characterised by high energy consumption, telecom operations are seeing their energy footprint expand further with the adoption of next-generation digital technologies. Technologies such as artificial intelligence (AI), internet of things (IoT) and cloud computing rely on a dense and power-intensive digital backbone, placing additional pressure on networks, data centres and supporting infrastructure. While the industry has implemented several initiatives in recent years to improve energy efficiency and expand the use of renewable power, progress has been constrained by structural and financial challenges. The high upfront investment required for green energy solutions, including renewable generation, energy storage and network modernisation, poses a significant hurdle. Given that the energy needs of the telecom sector are expected to amplify exponentially in the coming years, the industry will need to adopt financially viable green practices, alongside policy and regulatory support from the government, to effectively reduce its energy footprint.
Power profiles of different ICT segments
Mobile networks remain among the most energy-intensive components of the telecom ecosystem. Base stations account for the largest share of power consumption, as energy is required not only for radio transmission but also for cooling systems and rectifiers that ensure uninterrupted operations. The transition to 5G has further amplified energy requirements. The deployment of macro cells, small cells and distributed antenna systems has increased network density and operating intensity, leading to higher aggregate electricity use. In addition, many telecom tower sites continue to rely on diesel generators due to inconsistent grid supply, particularly outside major urban centres. Diesel usage at these sites is estimated to generate close to 10 million tonnes of carbon dioxide annually, contributing roughly 1 per cent to India’s total emissions.
Among next-generation technologies, AI has significantly intensified the energy challenge. While AI holds promise for improving network efficiency through traffic optimisation, automation and predictive maintenance, its development phase is highly resource-intensive. Training large AI models requires massive computational power and sustained energy use over extended periods. Studies suggest that training a single large AI model can result in carbon emissions equivalent to the lifetime emissions of approximately five average passenger vehicles. Large language models, in particular, require the processing of vast data sets and the continuous operation of thousands of high-performance processors, pushing electricity consumption into the range of several gigawatt-hours.
The rapid proliferation of IoT devices has also raised overall power demand. Although individual IoT devices consume relatively little energy, the sheer scale of deployment significantly increases cumulative energy requirements. A more pressing challenge lies in managing the electronic waste generated by IoT devices, driven largely by the widespread use of batteries and semiconductor components. This has raised concerns about IoT deployments in applications where environmental costs may outweigh functional benefits.
To support the expansion of next-generation technologies, data centres have become central to data storage, processing and real-time analytics. However, these facilities are inherently energy-intensive, requiring uninterrupted power for servers as well as extensive cooling systems. Globally, data centres are estimated to account for around 4-5 per cent of total greenhouse gas emissions. Within a typical data centre, servers and cooling infrastructure together consume nearly 86 per cent of total electricity, while storage systems account for about 11 per cent and network equipment for the remaining 3 per cent.
Sustainable energy management practises
In response to rising energy requirements, telecom operators globally have undertaken several sustainability initiatives aimed at minimising the environmental impact of their operations and improving energy efficiency. To reduce the energy footprint of mobile networks, operators are upgrading to more energy-efficient radio equipment, modernising software and deploying advanced network management systems that dynamically adjust power usage based on real-time traffic conditions. Increasingly, AI and machine learning tools are being used to monitor energy consumption and optimise network performance, helping reduce power use during low-traffic periods.
Alongside efficiency measures, telecom operators are expanding the use of renewable energy to power their operations. Declining solar panel costs have made on-site solar installations viable at both rural tower sites and urban facilities, while open access procurement of wind and solar power is gaining traction for large network and data centre loads. Biomass-based and hybrid power solutions are also being explored in remote areas with frequent grid outages.
With regard to reducing energy consumption in data centres, operators are adopting energy-efficient cooling systems, low global-warming-potential refrigerants and AI-based cooling optimisation techniques to lower electricity use. In addition, greater use of virtualisation and cloud optimisation is helping reduce the energy required per unit of computing, supporting a more sustainable expansion of digital infrastructure.
Recent initiatives of Indian operators
In line with global trends, Indian telecom operators have also stepped up their sustainable energy management efforts. Bharti Airtel has committed to reducing its Scope 1 emissions, which arise directly from sources owned or controlled by the company, such as fuel use in diesel generators and company vehicles, and Scope 2 emissions, which stem from purchased electricity used to run its networks, offices and data centres, by 50.2 per cent by FY 2030-31, compared to FY 2020-21. To achieve these targets, Airtel has solarised over 30,000 mobile network sites and deployed AI-based energy management tools and energy-efficient radio technologies to optimise power consumption in real time. Airtel’s data centre arm, Nxtra has also scaled up renewable energy sourcing across its facilities, with 49 per cent of the energy consumed at its core data centre facilities coming from renewable sources in FY 2024-25. Nxtra has further become one of the first data centre operators in India to join the global RE100 initiative, committing to 100 per cent renewable energy use for its operations.
Reliance Jio has similarly undertaken a wide range of sustainability initiatives aimed at minimising energy consumption and reducing carbon emissions across its operational infrastructure. The company has committed to lowering its absolute Scope 1 and Scope 2 emissions by 76 per cent and Scope 3 emissions by 66.5 per cent by FY 2028-29, compared to FY 2020-21. A key pillar of this strategy is increasing the share of renewable electricity from 1.2 per cent in FY 2020-21 to 100 per cent by FY 2029-30, and maintaining this level thereafter. Jio has installed over 174 MWp of solar capacity across more than 20,000 sites nationwide and is exploring wind power and methanol-based fuel cells to further reduce its carbon footprint.
Despite financial constraints, Vodafone Idea (Vi) has also identified energy efficiency and emissions reduction as its core priorities. The operator has deployed exclusive solar energy solutions at over 1,000 co-owned sites and is upgrading to more energy-efficient radio technologies as part of its 5G roll-out, which can lower power consumption per unit of traffic while improving spectrum efficiency. Vi has also initiated a diesel elimination programme, currently active at over 11,700 sites, to reduce carbon emissions. In addition, more than 75 per cent of its base transceiver station (BTS) portfolio consists of outdoor BTSs, which consume around 20 per cent less energy than indoor BTSs.
Challenges and the way forward
While sustainability and the transition to green energy have gained prominence in the telecom sector over the past few years, the weak financial position of operators in the Indian market continues to constrain the pace of adoption. Setting up on-site solar capacity, procuring renewable power through open access, or deploying hybrid power systems involves substantial upfront capital expenditure. This challenge is further compounded by the need for energy storage solutions, such as batteries or hybrid backup systems, to address the intermittency of renewable sources, adding to both capital and maintenance costs.
At the same time, the energy requirements of the telecom sector are expected to rise sharply in the coming years. The continued roll-out of 5G networks, eventual launch of 6G, increasing densification of mobile towers, rapid growth in data traffic and expansion of data centres will significantly raise electricity demand across the telecom value chain. Moreover, as AI becomes more deeply embedded in network operations and data centre management, addressing its growing energy footprint will be critical to balancing digital expansion with environmental sustainability.
In this context, the transition to cleaner energy sources is imperative not only from an environmental perspective but also for cost efficiency and energy security. Accelerating this transition will require stronger policy support. Targeted interventions such as tax incentives, accelerated depreciation, interest subvention, or viability gap funding for energy storage solutions could help offset the high initial costs faced by tower companies and telecom operators. A coordinated approach involving industry, policymakers and power utilities will be essential to ensure that the sector’s energy transition keeps pace with its rapid digital growth.
