The demand for reliable telecom connectivity has surged exponentially in recent years, driven by rapid digital transformation across various industries and the adoption of next-generation technologies such as internet of things (IoT), artificial intelligence (AI) and cloud computing. Further, the increasing reliance on remote work, online learning, e-commerce and digital communication has intensified the need for uninterrupted connectivity. While the telecom industry is expanding its infrastructure to meet this burgeoning demand for high speed and low-latency telecom services, the energy-intensive nature of installing and operating telecom towers, data centres and associated equipment presents significant ecological challenges. Although the industry has implemented several initiatives in recent years to reduce its energy consumption, the substantial initial investment required for green energy solutions presents a significant challenge, particularly as companies strive to manage their operational costs.
A look at the energy footprint of various ICT sectors, the strategies being adopted by the industry to mitigate their environmental impact and the way forward…
Energy consumption across ICT segments
The telecom industry’s energy consumption spans several ICT sectors such as mobile networks, data centres and power requirements for next-generation technologies. Base stations are the largest consumers of energy in mobile networks, with significant power used by radio units, cooling systems and rectifiers. The roll-out of 5G networks, including macro cells, small cells and distributed antenna systems, has increased the power consumption due to the higher operational intensity of these technologies. Moreover, many telecom tower sites rely on diesel generators due to unreliable grid power, resulting in significant ecological impact. Diesel consumption at these sites is estimated to produce around 10 million tonnes of carbon dioxide annually, contributing about 1 per cent to India’s overall emissions, surpassing the global telecom sector average of 0.7 per cent.
The demand for data centres has surged considerably as more industries are relying on them for storage and computational needs. However, data centres are energy-intensive, requiring substantial power to run servers and cooling systems. These centres are estimated to contribute approximately 5 per cent to global greenhouse gas emissions. Within data centres, servers and cooling systems account for 86 per cent of electricity usage, followed by storage drives (11 per cent) and network devices (3 per cent).
Among next-generation technologies, IoT and AI are major drivers of energy consumption. Although individual IoT devices have low energy needs, the exponential increase in the number of connected devices raises the total energy required. In addition, the United Nations estimates that global e-waste on account of the use of IoT devices will rise to 52.2 million metric tonnes by 2025, largely driven by the use of batteries and semiconductors in these devices. Concerns have also been raised over the unnecessary use of IoT technology, such as embedding sensors in items that may not require them.
While AI offers potential for reducing long-term energy consumption in businesses, training AI models is currently highly energy-intensive. A recent study found that training a single AI-powered vehicle has an environmental impact five times higher than the lifetime emissions of an average car. AI systems require vast amounts of data processing during training, significantly increasing power demands. For instance, training an AI model such as ChatGPT involves processing billions of articles to understand language and structure, contributing to higher computing power requirements.
Sustainable energy management strategies
The telecom industry is implementing a number of sustainability initiatives aimed at minimising the environmental impact of its operations and enhancing energy efficiency. A primary focus is on reducing power consumption, as over 90 per cent of operators’ carbon footprints arise from the electricity consumed to power their networks. To address this challenge, operators are implementing several strategies to optimise energy usage. These include upgrading to energy-efficient hardware and software, utilising advanced network management systems and adopting smart technologies that dynamically adjust energy consumption based on real-time traffic demand. For example, the industry is increasingly leveraging AI and machine learning technologies to gain insights into energy usage and network performance, enabling operators to optimise power consumption according to varying traffic patterns. Additionally, the phasing out of legacy 2G and 3G networks is complementing the industry’s sustainability efforts as operators transition to more efficient 5G technology. While 5G can be energy-intensive, it also provides better energy efficiency compared to legacy 2G and 3G networks, owing to advancements in hardware, software and power-saving features.
A vital aspect of the sustainability initiatives in the telecom industry is the shift towards renewable energy sources, such as solar and wind power, which can significantly reduce carbon emissions and enhance energy efficiency. The recent decline in solar panel prices has made solar energy a financially viable solution for powering telecom towers, particularly in rural areas. In urban settings, rooftop-mounted solar panels can effectively supply power to telecom infrastructure, allowing operators to leverage renewable energy resources in their energy mix. Additionally, biomass can be utilised in rural areas where the average load exceeds 5 kW and grid outages occur frequently. Other potential solutions are hydrogen fuel cells and wind energy, which provide flexibility in meeting electricity demands while decreasing reliance on fossil fuels.
The industry is also exploring steps to reduce the energy footprint of data centres that account for a significant portion of energy usage within telecom operations. Approximately 40 per cent of the total energy consumed by a data centre is expended in maintaining a temperature-controlled environment. To this end, installing energy-efficient cooling equipment, such as advanced chillers with low-global warming potential refrigerants, can significantly reduce power consumption, potentially by up to 35 per cent annually. Moreover, implementing smart cooling solutions powered by predictive analytics can help data centre managers allocate power optimally based on varying demands throughout the day.
To reduce the energy footprint of cloud computing, companies are looking to deploy virtualisation technologies that enable multiple virtual machines to run on a single physical server, thus decreasing the number of physical servers required and the associated energy consumption. Virtualisation can also automate the scaling of computing resources, allowing organisations to adjust their capacity based on fluctuating demands. Additionally, enterprises can choose cloud services that offer carbon offsetting programmes, enabling them to support projects that mitigate carbon emissions resulting from their cloud usage.
Green initiatives by Indian operators
Indian telecom operators are also taking several initiatives to reduce the energy footprint of their operations. For instance, Bharti Airtel has recently partnered with equipment vendor Nokia to launch the “Green 5G” initiative, aimed at significantly improving the energy efficiency of Airtel’s 4G/5G networks. The move seeks to reduce carbon emissions by about 143,413 metric tonnes annually by using AI, machine learning and energy-efficient software. The companies will collaborate to explore innovative technologies such as the “zero-traffic, zero-watt” function, which reduces power usage during low-traffic times. As part of its sustainability initiatives, Airtel has installed solar-powered systems at approximately 25,000 sites and significantly increased renewable energy usage at its data centres.
Meanwhile, Reliance Jio has undertaken a wide range of sustainability initiatives for minimising energy consumption and reducing carbon emissions across its operational infrastructure. One of the key strategies implemented by the operator involves the selection of electronic equipment for small facilities such as towers that are capable of operating in a non-air-conditioned environment. Another important initiative is the installation of lithium-ion batteries at these small facilities. Designed to function efficiently at ambient temperatures, these batteries can reduce the number of hours a diesel generator runs, in turn lowering both carbon emissions and operational costs. Vodafone Idea Limited has initiated a diesel elimination project, which is currently active at over 11,700 sites, to further reduce its carbon emissions. Besides, over 75 per cent of its base transceiver station (BTS) portfolio consists of outdoor BTSs, which consume 20 per cent less energy compared to indoor BTSs.
The way forward
While the go-green initiative has gained traction in the telecom industry in recent years, financial constraints faced by operators have hindered significant investments in establishing the necessary infrastructure for alternative energy generation. Further, the adoption of renewable energy often faces barriers such as local climate conditions, regulatory frameworks, grid availability and fluctuating energy prices. Moreover, many renewable energy sources necessitate supplementary storage technologies, which further increase the overall capital expenditure. Therefore, there is a need to look for cost-effective solutions that can help lower the energy quotient of the telecom industry without compromising on service quality. In addition to the industry’s efforts to minimise its energy footprint, the government should explore ways to provide financial incentives to telecom infrastructure companies for energy reduction. This could include measures such as tax holidays or accelerated depreciation to help offset the extra capital costs associated with implementing renewable energy solutions.
