Even In a Changing World, Green IT Is Still Good for Business

“It’s revenue upside. It’s cost savings. The top must overcome the bottom. And there’s a strong case to believe it can if green IT is done right,” he says. “That’s what generates your green ROI.”

So, what makes green IT especially appealing now? And how can you ensure your strategy is geared toward results?

Why Now? Green IT Meets AI.

Although green IT can take on many forms, strategies generally encompass hardware, software and services. Think data storage that consumes less power and emits fewer greenhouse gases and algorithms that track and optimize functions or lines of code.

It makes sense, then, that the rise of powerful — and power-hungry — AI applications has made green IT even more urgent.

Sanjay Podder, global managing director and technology sustainability innovation leader who co-authored the above Accenture report, says generative AI is devouring energy and belching out carbon emissions. But just as the increase in computing power isn’t perceptible to users, its environmental impacts can be difficult for businesses to see. That’s already led some AI hyperscalers to run afoul of their emissions goals. 

The increased amount of dark data fueling AI also increases environmental impact through the need for more virtual machines, improved hardware and higher cloud bills. 

However, Podder says governance and green data techniques can reduce the costs of hosting and subscription charging. Even small actions, such as adjusting the temperature by a degree or two in a data center, substantially lowers energy consumption and costs, he adds.

“In the times we live in, our technologies are getting exponential and are compute-hungry, which comes at a price,” Podder says. “Because every dollar matters, green IT must be a priority. Instead of wasting investments, organizations must use it properly.”

The Competitive Advantage

There’s a reason “going green” is associated with higher overhead — it can cost a lot of money to get up and running.

Beyond investments in the obvious, such as new hardware and systems, green IT also requires hiring people with the necessary skill sets to manage sustainability programs and stay up-to-date with regulatory compliance. Add in potential supply chain disruptions as you shift to sustainable materials, and it’s easy to see why some organizations simply throw up their hands when faced with the prospect of transitioning to sustainable IT.

But, Ninan says, the benefits — including revenue — can far outweigh the upfront costs if pursued correctly.

Organizations considering the move must weigh the combination of initial investments, cost savings and revenue, he says. That’s the path to ROI, which is the precursor to a competitive advantage.

Coming Clean and Cutting Costs

Between cleaner hardware, efficient data management, and algorithms that are adept at optimizing just about everything, the cost savings can be dramatic. 

Hiren Hasmukh, CEO of IT asset management firm Teqtivity, says he’s often seen organizations start to realize those savings within a few months of transitioning. In the long term, there are more indirect but equally valuable paths to savings. “Instead of constantly fighting fires with outdated equipment, they can operate more strategically,” he says. “Energy-efficient systems generate less heat, which means fewer hardware failures and extended equipment lifespans.” 

The result: improved system reliability, reduced maintenance needs and more time for IT teams to devote to projects that add value.

It’s also worth noting that as environmental regulations tighten, organizations with existing green IT initiatives will be better positioned than their peers, Hasmukh says.

The sum of these cost savings can add up to something more: rapid scaling.

“When you talk about the economies of scale,” says Ninan, “you’re actually talking about optimizing your foundation, reducing the complexity — simplifying so that you can start to scale that reduced cost of your base.”

Going Green and Getting Green

That’s the tip of the green-IT-value-generation iceberg. The larger value, argues Ninan, lies in three distinct opportunities: product innovation, business models and branding.

“If we prioritize green within our product design, it leads us to different kinds of materials, new kinds of algorithms,” Ninan says, thereby allowing organizations to explore different angles of innovation and reach entirely new markets.

As an example, Ninan cites Hitachi Vantara’s flex business model. “We don’t sell just on the capacity of bits and bytes,” he says. “We sell based on outcomes.” Reduced power consumption allows the company to shift its approach to traditional business models, which appeal to customers.

It’s not the only thing that draws customers in. Green IT is a strong selling point and differentiator, says Ninan. A study from Simon-Kucher & Partners found that 60 percent of customers rank sustainability as an important consideration when making a purchase. When sustainability becomes core to a brand, as Ninan notes, it often increases its market share. 

“You can differentiate your company by saying we are more green,” he adds.

How to Prioritize Green IT

For organizations to realize the full benefits of green IT, Ninan says it needs to be a primary component of the enterprise strategy, starting at the top and cascading through the company, signaling a culture change.

“It is not just an intent. It has to be actionable,” adds Podder. “When it comes top down, then it is repeatable, sustainable, optimizing — you can see benefits, you can start reporting those benefits.”

What does that look like? Every business decision should be made with green IT at the forefront, from embedding sustainability practices in all processes to requiring that vendors also be green.

That’s how sustainability becomes entrenched in your value chain — and your company.

Data centers, says Hasmukh, are the perfect place to start. Many are “zombies,” he says, “meaning they are consuming power while serving no purpose due to poor documents.” By implementing automated tracking systems, organizations can map the purpose and usage of every asset, helping them identify areas where they can reduce or eliminate infrastructure without compromising services.

Next, turn to the lifecycle of your devices. Many companies automatically replace equipment every three years, Hasmukh says, which adds e-waste and increases costs. Through proactive maintenance, though, they can significantly extend the life of most devices.

Once your transition to green IT begins, Podder recommends documenting all aspects of the process, starting with measuring and tracking current IT emissions. By setting goals and continually measuring emissions, businesses can identify areas for focus.

“Don’t wait for the product to be perfect,” adds Hasmukh. “Your green IT approach will grow and pivot over time, so it will never be ‘complete.’”

Good for Business and Society

There’s a more poignant benefit to green IT that extends far beyond the bottom line, says Ninan: reduced societal costs.

Other technologies, such as GenAI, lauded for their economic advantages, also come with hidden costs, both financial and otherwise. To power AI, companies must also invest in “huge data centers,” Ninan says. “Those data centers are creating costs not just for companies, but for the environment. You’re just shifting costs from one bucket to another. Are you really saving?”

Green IT, on the other hand, offers an opportunity to optimize across the board. It’s about investing in your company’s purpose, says Ninan, a decision that benefits everyone you touch, today and tomorrow.