The Cloud Computing Problem

Up to 30% of cloud spend is wasted due to the prevalent pay-as-you-go model, lack of visibility, over provisioning, and unplanned costs. Meanwhile, cloud computing' s environmental impact has become a major concern, contributing more emissions than the global airline industry! As climate change concerns grow and ESG regulations tighten, businesses must take action.

What is a Cloud Carbon Footprint?

A cloud carbon footprint refers to the greenhouse gases (GHGs), primarily carbon dioxide (CO2), emitted due to cloud computing operations. These emissions stem from energy consumption required to run and cool data centers, which host servers, storage devices, networking equipment, and other infrastructure.

Energy Use

The electricity powering data centers varies in carbon intensity depending on energy sources (fossil fuels vs. renewables).

Data Center Operations

Continuous 24/7 operations and cooling systems consume significant amounts of energy.

Energy Efficiency

Infrastructure design, cooling systems, and resource utilization impact emissions.

Supply Chain

Manufacturing, transportation, and disposal of data center hardware contribute to emissions.

Cloud computing emissions

For a typical SaaS company, cloud computing emissions can account for 30% to 70% of their total carbon footprint, depending on several factors:

Key Factors

Factor	Effect on % of Cloud Emissions
Product type	Backend-heavy platforms (e.g., AI, analytics) have higher cloud usage.
Employee count & remote work	More employees = more Scope 3 emissions (commuting, home offices).
Data storage & compute intensity	Intensive workloads (e.g., training models, large-scale processing) drive cloud % higher.
Cloud provider efficiency & region	Using greener cloud regions (e.g., Oregon or Google Cloud’s carbon-free zones) lowers emissions share.

General Benchmarks

Cloud as % of Total Emissions vs SaaS Company Type

~30 – 40%

Lightweight apps (e.g., CRM, note-taking)

~50 – 60%

Data-intensive (e.g., analytics, dev tools)

~60 – 70%

AI/ML, video, large-scale compute

Emissions Breakdown Example

For mid-sized SaaS: % of total vs emission source

55%

Cloud infrastructure

15%

Business travel

10%

Employee devices & offices

15%

Employee commuting / remote work

Misc. (tools, software, events)

GreenOps Meets FinOps

Lack of data transparency is the primary roadblock to sustainable cloud computing. Carbonsoft enables businesses to view carbon emissions data alongside cloud costs in a unified dashboard.

Reporting

Carbonsoft helps organizations comply with ESRS and prepare ESG reports with accurate Scope 3 emissions data.

Reduce Costs

By understanding cloud computing emissions data, businesses can take steps to reduce their cloud carbon footprint. While IT infrastructure is essential, minimizing wasteful cloud usage significantly improves efficiency and sustainability.

Inspire Green Initiatives

Managing cloud carbon consumption is the first step toward broader sustainability efforts. A data-backed green strategy can inspire teams to adopt environmentally conscious practices, fostering a culture of sustainability.