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Our power, our planet: renewable energy in the telco industry
Increasing digital connectivity comes with growing energy demands but this challenge also presents an opportunity. Telecom companies are embracing renewable energy and artificial intelligence (AI) to power a more sustainable future—for the planet and for business.
Telecom networks—both mobile and fixed—account for over 75% of telcos’ total energy consumption (McKinsey, 2023). As demand for data continues to rise and 5G (and future 6G) networks become widespread, total energy use is projected to increase even further. Though many operators are transitioning to more efficient fiber infrastructure, legacy systems must still be maintained in the interim adding to the strain.
And this matters because the telecom sector is estimated to contribute up to 2% of global carbon emissions (McKinsey, 2023). Reaching net-zero is a massive challenge, but also a necessary one—especially considering network operations account for the largest share of telcos’ Scope 1 and 2 emissions, and more than 25% of their total greenhouse gas (GHG) output (McKinsey, 2023).
That’s why many major telecom companies have pledged to achieve net-zero emissions, with some aiming for 2050, and the most ambitious targeting as early as 2025.
AI is emerging as one of the most powerful tools in helping telcos reduce their carbon footprints. Leading companies like Vodafone, Deutsche Telekom, and Ericsson are using AI to:
For instance, Vodafone uses AI to spot anomalies in its radio networks, detect interference sources, and predict equipment issues for preventive maintenance, all while optimizing energy consumption (Inveniam, 2024). Ericsson, on the other hand, is integrating AI with renewable energy and electric vehicles to reduce operational emissions (Inveniam, 2024). And Deutsche Telekom is using AI to streamline network operations and improve energy efficiency (Inveniam, 2024).
These efforts are not only eco-friendly but cost-effective, proving that AI can balance profitability with sustainability.
The shift toward renewable energy is already in motion across the telecom industry. In fact, many companies began tracking and reporting their energy usage years ago.
One particularly innovative move is RAN (Radio Access Network) sharing, where two or more operators share infrastructure. In Poland, Orange and T-Mobile reduced site numbers by 20% through RAN sharing, resulting in energy consumption savings of up to 30% per site (ING, 2024).
The telecom sector’s sustainability push aligns with broader global trends. Countries around the world are proving that renewable energy can be the backbone of national energy strategies:
These examples are inspiring telcos to go all-in on clean energy.
The benefits of clean energy go far beyond emissions:
This Earth Day, the message is clear: Our power is our planet.
The telecom industry has a unique responsibility—and an incredible opportunity—to lead the way to a sustainable future. With renewable energy, AI, and bold commitments, telcos can do more than keep us connected—they can help protect the planet we all share.
The future is bright, clean, and digital. Let’s power it right.
