Data centers could cause serious environmental damage — if we don’t regulate them now

With the average adult spending 4.2 hours a day on smartphone apps in 2020, our reliance on technology has evolved even more than we might have thought possible. From ordering food to connecting with loved ones or binge-watching the latest series, our data consumption is an integral part of daily life.

As a result, businesses are also consuming more data than ever before, and this trend will only grow. But our tech-loving ways could cause lasting damage to the planet.

While the transition to the cloud has promised to solve many of our data overload problems, data centers are now producing the same amount of emissions as the global airline industry .

As COP26 comes to a close, one of the biggest challenges international leaders have failed to address is setting tighter and clearer regulations for the exponentially growing cloud industry.

The truth about ‘carbon neutrality’

Many tech companies have publicly claimed to be ‘carbon neutral’, but the truth isn’t as clean cut. A lot of them just purchase Renewable Energy Certificates or RECs to offset emissions on paper and don’t provide proper transparency in their emissions calculations. And that’s a big problem.

Without clear, transparent, and universal reporting standards, we can’t know what percentage of green energy is being used to power data centers and what percentage comes from purchasing REC offsets.

RECs are fine as a band aid to emissions, but it’s by no means a long-term solution.

We can’t repair the damage of the climate crisis after the fact, so it’s important that we instead focus on building data centers that are actually better for the environment.

Lack of reporting standards doesn’t just mean we miss out on recording greenhouse gas emissions, it also leads to the glossing over of other harmful factors.

According to the Uptime Institute’s 2021 Global Data Center Survey , while many report on power consumption, the electricity and water resources needed to keep data centers cool often aren’t being tracked or accounted for. Neither is the e-waste created by the need to continuously replace servers.

For example, in the Netherlands data centers use an average of 1 million cubic meters of water per year — the equivalent of 19,230 one-person households .

Earlier this year there were reports that residents of North Holland could experience water shortages due to data centers . While this claim was later disputed by the local government , it has raised concerns over the impact that increasing water consumption by growing data centers could have in an ever warming climate. Can sustainability and technology thrive together?

Our reliance on tech to power our businesses and daily lives proves that our data processing needs will only grow.

Although data consumption and sustainability might appear to be at competing ends of the spectrum, momentum is shifting towards the idea of greener, more sustainable forms of cloud computing. More and more consumers are demanding companies take a proactive role in reducing their emissions, putting the spotlight on big tech companies and cloud providers to address the issue.

While consumer awareness and activism are important to put pressure on companies, it’s governments that will need to set stricter emission reduction targets and transparent reporting standards.

The European Union has been a leader in this area with its ambitious Green Deal, which also includes a call for data centers to achieve carbon neutrality by 2030.

With more businesses looking for ways to lower their carbon footprint, this may pave the way for EU based data service providers to take the lead.

Across Europe, countries like Finland — that are heavily invested in renewable energy — are seen as examples of green tech innovators and serve as inspiration for those seeking greener energy consumption. In France, new legislation is putting pressure on cloud providers to decrease their energy consumption.

Some cloud providers are also going further to measure their impact. Cloud provider Scaleway is developing a Real Data Centre Efficiency measure to provide customers with an objective take on their environmental impact. By doing so, the tech firm gives consumers the transparency and information they need to make the best choice for themselves.

But, in order to hold global data centers accountable for progress on sustainability, there needs to be clear, comparable standards across the board, not just for power consumption and PUE, but also for other factors like water consumption and e-waste reduction.

While we have pressure from consumers and new legislation for data centers, there needs to be more pressure on companies to choose green cloud providers. At the moment, while companies are being pushed to lower their carbon footprint, they aren’t being held accountable for emissions generated by data stored on external cloud servers.

It’s important to note that, as of 2023, new legislation will oblige EU based companies with more than 250 employees to report on their environmental impact, just as they report their financial results.

While there are plenty of concerns world leaders need to consider when it comes to climate change, with ever increasing data consumption, taking action to push for greener cloud services isn’t one we can afford to overlook.

Here are a few ways they can do this:

Set clear, universal environmental reporting standards for data centers

Include water consumption, IT or data center carbon emissions, and e-waste in calculations

Provide incentives for data centers to invest in green tech adoption and research (particularly in new cooling techniques)

Make companies accountable for emissions tied to their external data and provide incentives to choose green data service options

Ban water towers in Europe

All-in on virtual experiences? You’re signing your brand’s death warrant

Last month, the streets of Austin, Texas bustled with live DJs, flying drones, and bands performing inside flower shops. The virtual streets of Austin, that is.

For the second year in a row, South by Southwest went digital. This time, it featured an immersive recreation of downtown Austin in which attendees could strap on a pair of Oculus Quest headset to drink virtual beer, peruse a crypto-art gallery, and pop into a virtual selfie stand.

SXSW 2021 was lauded for its technological feats — and rightly so — but if event organizers are convinced this VR utopia is the new frontier for live experiences, I believe they’ll be in for a painful reckoning.

And this is especially true for brands that have relied on virtual concerts, augmented reality scavenger hunts, and audio-guided tastings to connect with consumers in a contactless world.

Virtual experiences — impressive as they are — aren’t sustainable for a species hardwired to socialize face-to-face. And I’m not being a Luddite, I know this because I’ve produced them for brands. It’s like putting a Band-Aid on a gunshot wound.

Some marketing prophets are asserting that virtual experiences and events are here to stay in the ‘new normal.’ Remember when we invented that little catchphrase last spring? Well, here we are, barely a year later, and the new normal is already old.

So don’t believe the prophets. Sure virtual experiences work great now, but don’t put all your brand’s future marketing eggs in that basket.

The novelty of virtual events, much like hoverboards and fidget spinners, fizzles out after you try it a few times. Human beings are restless creatures. We wander, we pace, we nudge our friend and ask if they want another beer. Being trapped in a chair, staring at a glowing rectangle for hours is deadening — even if Post Malone is covering “Only Wanna Be With You.”

Millions of would-be event-goers are sitting on more than a year’s worth of pent-up energy, waiting to experience a world that doesn’t run on WiFi. They’re ready to gather IRL — even in small settings. That’s a given. The bigger question is whether brands are ready to pivot (again) as we trudge our way out of this.

As of this writing, Americans are getting vaccinated at a rate of 2.5 million per week. Are we there yet? I ask, like a toddler on a lengthy road trip. Not quite. But our destination is in sight, and the passengers in the car are extremely antsy.

IRL is still MVP

In-person interactions literally change our brain for the better. Researchers at the University of Chicago and Harvard found that the simple act of shaking hands causes the reward center of our brains to light up.

The more senses you engage, the more meaningful an experience becomes. That’s why our fondest memories are almost exclusively formed in the real world, not in front of a computer.

Those who have been fortunate enough to save money and stay healthy throughout the pandemic aren’t anticipating the next virtual festival or online concert, no matter how “immersive” it might be. They want to feel human again.

“Energy, attitude and personality cannot be ‘remoted’ through even the best fiber optic lines,” wrote Jerry Seinfeld in his contentious New York Times op-ed . “Real, live, inspiring human energy exists when we coagulate together in crazy places…”

That little device in your pocket (the one you’re probably reading this on) hasn’t replaced reality. Never has, never will. If anything, dramatic spikes in screen time have worn us out.

We’re tired of scanning QR codes to order a breakfast burrito. We’re tired of contactless this and that. We’re tired of working in sweatpants. We’re tired of Zoom: You’re muted, go ahead, oh, no, I was just gonna say…

“Everyone hates to do this,” Seinfeld reminds us. “Everyone. Hates.”

Okay, so we’re burnt out with virtual stuff, but we’re a long way from Super Bowl-sized gatherings. Now what?

The plan ahead

There’s a happy medium between sitting in front of a screen and packing into a massive crowd. I believe pop-ups, once a cliche tactic, are poised to become the experience du jour , namely because they let brands own a small footprint and control how many people come in and out.

You can also take the you-and-a-few-friends approach to ease back into experiences. Hotelom, for example, offered a private Friendsgiving island getaway for $50 a night. Corona beer delivered a tailgate on wheels to football fans stuck at home. Miller High Life built a backyard dive bar for a lucky winner.

Is any of this the same as standing shoulder-to-shoulder at Lollapalooza? Of course not. But sometimes you have to walk before you run.

This virus will eventually give up, but people will not give up. And when those people get the green light to dust off their grown-up shoes and go out, hunching over their laptops will be the last thing on their to-do list.

See you soon.

You’ve just been accepted into a startup accelerator — now what?

Almost every startup has flirted with the idea of joining an accelerator program. When done right, they can be an invaluable opportunity to learn from experts, get feedback on your product, business, or strategy, and get access to lucrative funding opportunities. But just how beneficial are they?

The answer really depends on you.

Taking time out of your daily operations for three to even six months is a big deal in a startup’s hectic life cycle. There are so many founders who apply to accelerators thinking it’ll be a great opportunity and then, when the program actually starts, it gets pushed aside to tackle other concerns. You miss one workshop here, one mixer there, and the next thing you know it’s over.

In the past, we’ve written about what to consider before joining a startup accelerator , how to choose the right program , and how to actually get in . Now we want to focus on what you should be doing during and after the program ends to keep the momentum going — so let’s dig in!

Be THAT person at the front of the class

Luckily, we had access to a batch of cohorts fresh out of the DMS Accelerator for data-centric startups and SMEs in Europe. TNW reached out to some of the most engaged participants to find out how they got the most out of their experience and what they recommend to fellow founders.

Claire Linley, co-founder and CCO at retail technology innovator Delloop , began by sharing her simple strategy:

Participate, participate, participate! Get involved in every aspect of the program.

The biggest benefit of a good accelerator program is the mentoring opportunities. You’re opening your company up to be poked and prodded by experts and mentors who will scrutinize your business plan, question your product-market fit, and may even tell you to ditch your artsy logo.

Keep in mind that your startup isn’t a glass house. Some of the best known tech companies today went through pivots and rebranding to reach where they are now. Twitter was originally a podcasting platform , Airbnb was focused on finding beds for conference attendees , and Youtube started out as a video dating site .

For Manuel Pessanha, CEO of automated fleet and delivery scheduling solution, Synertics , one of the best pieces of advice for fellow founders is:

This is your chance to see your business from different perspectives and ask as many questions as possible. So be that nerd at the front of the classroom.

Make some friends (or at least long term connections)

After the expert advice, the second biggest benefit of joining an accelerator is the potential connections you can make. Whether it’s with your mentors, fellow founders, guest speakers at workshops, or anyone else you meet along the way.

But it’s all too easy to let these connections fade after the accelerator ends. Faizan Patankar, CEO of industrial ops AI startup, Amygda said:

In fact, Patankar suggests to think even wider than your own cohort:

Take a page from Leila Koenig, co-founder at Dashfactory (creator of the electric Dashbike) who told TNW she made it a habit to connect with every person she met on LinkedIn straight away.

Don’t just bring senior people

A lot of startups end up just sending founders or senior level people to accelerator workshops — but that’s a big mistake. Instead, you should think about them like free training sessions that your whole team can benefit from. Whether your marketing team wants to get some external advice on their new campaign or your sales team wants to learn about how they can build their pipeline, there are lots of opportunities for growth. Koenig put it succinctly:

Similarly, Violetta Shishkina co-founder & CEO of blockchain-based CAD sharing solution, CADChain , actually found the DMS Accelerator to be a great opportunity for getting new hires up to speed.

Advertise, market, and share

Remember, being accepted into a well-known accelerator is great for your startup’s market cred. But don’t wait for VCs or potential partners to ask you which programs you’ve participated in — make sure everyone knows before they even think to ask. That’s at least what Patankar believes:

Echoing Patankar’s advice, Linley suggests:

Don’t forget to celebrate

Getting into a well-known accelerator is a milestone for your startup; it means the organizers see potential in your idea and your team. For all the ups and downs of startup life, it’s a great confirmation that you’re doing something right. So take the time to celebrate and get your team excited about what’s to come.

Billy Mello, CEO at LAIFE , an AI-based wellness and music company, said:

There are over 7000 startup accelerator and incubator programs globally, so there’s bound to be a great one out there for your startup’s needs. If you’re a data-centric SME or startup based in Europe, check out DMS Accelerator . The program aims to help these companies overcome barriers in data skills, entrepreneurial opportunities, legal issues and standardization.

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