How Green is Google?

I have recently read Google’s 2024 Environmental Report, and it’s quite thought provoking.

The headline sustainability figures are clear, the company states it has been net zero for several years by matching energy use with renewable generation.  However this is something of an accounting exercise as not every kWh used comes from a zero carbon source.  For this I would say, not too bad, but could do better.

The stark fact however is in 2023 their total GHG emissions “increased 13% year-over-year, primarily driven by increased data centre energy consumption and supply chain emissions.”  Some of this is because of operations in countries where there is less renewable generation.  To their credit there is no attempt to hide this.

Much of their increase in energy consumption, and therefore emissions, is due to the development and increasing use of AI.  These are products that customers want, that have many benefits and will drive growth at Google.    

Google clearly has huge resources at its disposal, but it is also a publicly traded company so it is under pressure to maintain value and create a competitive return on investment.

They say that they are working hard to improve efficiencies and help bring more renewable generation on line.  They also emphasise how much their products are being used to improve efficiency and reduce the impact of other industries.  This is undoubtably true, but they are incremental improvements that probably won’t offset emissions growth in other areas.

This feels a bit like an airline promoting the fact that it’s planes are 10% more efficient, but ignoring the fact that the number of flights is increasing by much more than that.   Efficiency gains tend to be incremental and subject to diminishing returns, while growth often continues steadily over time.  You tend to need a real step change in technology to give efficiency improvements that outweigh growth in the product’s use.

As I am am writing this I have just heard that Google have signed an agreement to use small nuclear reactors to generate power for some of their data centres.  Whether or not this is the step change we are looking for, only time will tell.

So what’s my conclusion?

Asking a company restrict the production of products that customers want is never going to work.  IT companies are taking steps to reduce their impact, but we really need to be taking more action more quickly.  Pressure from customers, and risk of reputation damage if they are “named and shamed” for not doing enough can clearly make a difference.  However the thing that will really make the difference is regulatory change that either incentivises or forces change.