Operators Fail To Break Energy Addiction In 2022

Operators Fail To Break Energy Addiction In 2022

This brief examines energy consumption in the network operator industry, spanning telcos, webscalers, and carrier-neutral operators (CNNOs). The report assesses energy consumption trends alongside revenues and other metrics, and highlights energy efficiency tactics being implemented by key operators. The analysis is based on a bottoms-up review of sustainability-related data and reports from 101 operators, accounting for nearly 90% (by revenues) of the entire industry of network operators: 17 webscalers, 29 carrier-neutral operators (CNNOs), and 55 telecom operators (telcos). Coverage timeframe is 2019-22. Energy consumption is defined to include both electricity and fuels such as diesel and natural gas.

Energy consumption per unit of revenue, or energy intensity, is one useful metric. Across operator segments, energy intensity averaged out to 127 MWh consumed per US$1 million in revenues in 2022, a bit higher than 2021; the uptick is due largely to telcos. Telcos consumed an average of 186MWh per $1M in revenue in 2022, up from 169 MWh/$M in 2021. That trend is a bit worrisome, as: telcos need to cut opex anywhere they can, including energy; they have low rates of renewable energy use, and high emissions; and, energy intensity should be flat to down over time, especially for telcos slimming down their asset base. Many telcos prefer to focus on traffic intensity, i.e. energy consumed per unit of traffic, which is going down steadily over time for the whole industry – but that doesn’t tell the whole story.