Data is often referred to as the "new oil," fuelling modern businesses in every industry. Data-driven businesses may be thriving but at what cost? The exponential growth of data creation and consumption has not only transformed how businesses operate but also significantly impacted the environment.
The infrastructure supporting the world’s ever-increasing data needs is a major contributor to global energy consumption. Data centres, facilities which store and process large amounts of data, require a substantial amount of energy for running servers and cooling systems that prevent these systems from overheating. The International Energy Agency (IEA) reported that data centres, cryptocurrencies, and artificial intelligence (AI) consumed almost 2% of total global electricity demand in 2022 and this figure is set to rise.
Leading tech companies like Google, Facebook, and Microsoft have responded by investing heavily in green data infrastructure. For example, edge data centres help reduce energy consumption by processing data closer to its source, which minimises the need for energy-intensive long-distance data transmission. Green data centres use renewable energy sources like wind and solar to power operations. Microsoft, aiming for carbon neutrality by 2030, is integrating these sustainable solutions into its Azure cloud services, offering greener options for customers.
For smaller businesses, that are in the early or mid-stages of their data transformation journey, it’s important to consider the impact of data from the beginning.
The Problem: Data Hoarding
Many organisations fall into the trap of "data hoarding"—collecting and storing large amounts of data without considering its actual value or usefulness. As data is stored and processed without a use case or regulatory reason, companies risk creating data silos, duplicating data and efforts across departments, and ultimately using more energy than necessary. These data silos complicate decision-making and can slow down processes, as data users struggle to find and analyse relevant information.
Data that is no longer useful or relevant is often stored indefinitely, consuming storage space and energy. This inefficiency drives up costs as businesses are forced to maintain oversized, bloated storage systems. In addition to the environmental impact, organisations face rising financial costs for managing data they don’t even need.
The Solution: A Clear Data Strategy
Having a data strategy will help business leaders be clear about what data is present in the organisation, what regulatory requirements there are, and what use-cases exist for getting value from the data. This strategy guides data management processes and creates a clear roadmap for data governance. This involves making informed decisions about what data should be gathered, stored, archived, and assigning ownership for each dataset. By understanding the most efficient methods for data storage and archiving—such as using cold storage for rarely accessed data or implementing automated archival systems—businesses can significantly reduce costs associated with managing unnecessary or outdated data. Additionally, a backlog of data use-cases can be created and maintained to keep track of opportunities where data can provide value to the business, with clear requirements of the data needed.
As data becomes an increasingly critical business asset, organisations must take responsibility for how they manage, store, and process it. A clear data strategy is not just about managing data effectively—it’s about ensuring a sustainable future for both your business and the planet.