Only 25 out of 200 digital companies assessed globally relied entirely on renewable electricity in 2024, highlighting the growing challenge of powering the technology industry while reducing its environmental impact.
The finding was contained in the latest Greening Digital Companies report released by the International Telecommunication Union and the World Benchmarking Alliance.
The report showed that the 200 companies consumed 494 terawatt-hours of electricity during the year, equivalent to about 1.7 per cent of global electricity use. Ten companies alone accounted for 54 per cent of the total demand.
The rapid growth of data centres, cloud computing and artificial intelligence has increased pressure on technology companies to manage their energy consumption and emissions more sustainably.
Digital firms recorded 301 million tonnes of operational greenhouse gas emissions in 2024, covering emissions from their direct activities and purchased energy. This represented about 0.8 per cent of global energy-related emissions and was 1.2 per cent higher than the previous year.
The report also highlighted the growing energy requirements of artificial intelligence. Operational emissions from four major AI and cloud providers increased substantially between 2020 and 2024, reaching levels as high as 239 per cent above their 2020 figures.
Telecommunications companies recorded a different trend, with 14 major operators cutting their emissions by 11 per cent over the same period.
Despite the industry’s heavy electricity demand, digital companies remain among the largest corporate buyers of renewable energy worldwide. However, the report noted that only a small share of the companies assessed had achieved complete reliance on renewable electricity.
A significant portion of the industry’s environmental impact also comes from activities outside companies’ direct operations. Among firms that disclosed Scope 3 emissions, value-chain activities accounted for 76 per cent of their total emissions.
World Benchmarking Alliance Executive Director, Gerbrand Haverkamp, said technology companies must look beyond their own operations and work with suppliers to reduce emissions associated with the products and services supporting their businesses.
The report found that climate reporting among digital companies has improved. About 89 per cent disclosed their direct emissions, while 81 per cent reported emissions linked to purchased energy. However, only 47 per cent provided information covering all relevant value-chain emissions.
Of the 200 companies assessed, 151 had submitted short-term targets for reducing Scope 1 and Scope 2 emissions. Only 114 of those targets had been validated by science-based frameworks, while 85 were considered to be making sufficient progress toward their goals.
Only 81 companies, representing 41 per cent of the companies reviewed, had comprehensive climate transition plans covering areas such as strategy, implementation, governance, measurement and stakeholder engagement.
The findings have implications for emerging digital markets such as Nigeria, where investments in data centres, telecommunications, cloud computing and artificial intelligence are increasing. Rising demand for digital services could place additional pressure on electricity systems already facing supply constraints and high energy costs.
The report urged technology companies and governments to ensure that the expansion of AI and digital infrastructure is accompanied by greater investment in clean energy and stronger emissions management.
ITU Secretary-General Doreen Bogdan-Martin said the environmental impact of rising digital energy demand must be addressed as the industry continues to expand.
The report recommended improved climate disclosure, stronger action on supply-chain emissions and more credible transition plans to ensure that technological growth does not undermine global climate objectives.
