The Real Cost of Ignoring Sustainability in IT Infrastructure & Steps to Solve It

12 Min Min Read
The Real Cost of Ignoring Sustainability in IT Infrastructure & Steps to Solve It

Saramsh Gautam on Oct 24, 2025

Reading Time: 12 Min

Let’s be honest, we have polluted the Earth and drained natural resources like there is no end to it. Why not become an enterprise that discourages industrious malpractice and instead adopts measures to develop sustainable technologies and resources to empower IT infrastructure?

Ignoring sustainability in your IT infrastructure may damage your brand reputation and hinder your ability to attract investors and talent in the long run, as the world quietly shifts toward eco-friendly business practices.

Investing in sustainable IT infrastructure offers companies environmental benefits, including a reduced carbon footprint, cost savings through increased energy efficiency and resource optimization, and long-term financial resilience by mitigating climate-related risks. It enhances a company’s reputation, improves access to capital, and ensures regulatory compliance, contributing to overall business value and alignment with global sustainability goals.

Let’s explore what a sustainable IT infrastructure is and how investing in it provides long-lasting efficiency.

How Sustainable IT Impacts Your Enterprise?

Sustainable IT refers to the design, deployment, and management of technology systems that minimize environmental impact, optimize resource efficiency, and support long-term business objectives without depleting natural resources. This approach is not just about using less power; it’s about rethinking the entire IT lifecycle to make technology a driver of environmental responsibility and operational resilience.

it infrastructure sustainability
For example, data centers are among the largest energy consumers in the digital economy, accounting for roughly 1-1.5% of global electricity use and contributing about 0.6% of global CO2 emissions, according to the International Energy Agency. By adopting energy-efficient servers, virtualization, and cloud computing, organizations can drastically reduce their energy footprint.

Another critical pillar of Sustainable IT is responsible e-waste management. Forward-thinking businesses like Dell Technologies run take-back programs that recycle electronic devices, turning waste into valuable resources. They have recycled more than 2.5 billion pounds of electronics since 2007.

Sustainable IT also involves optimizing power consumption through renewable energy integration, smart power management systems, and extending the hardware lifecycle. In fact, using renewable energy alone can reduce a company’s carbon emissions by up to 90% compared to conventional energy sources.

Ultimately, Sustainable IT aims to strike a strategic balance between performance, cost, and environmental responsibility, ensuring long-term business resilience and compliance with evolving green regulations.

By embracing sustainable IT, organizations actively lower operational costs, reduce their carbon footprint, and strengthen their brand reputation, while also fulfilling ESG goals and advancing global climate commitments — all while delivering reliable, scalable digital services.

The Real Cost of Ignoring Sustainable IT Infrastructure

Failing to invest in sustainable IT infrastructure is not just a missed opportunity; it’s a costly decision that can lead to significant financial, operational, and environmental consequences over time.

Let’s explore how.

1. Rising Energy Bills

Traditional, non-optimized IT infrastructures consume a substantial amount of power. Outdated servers, inefficient cooling systems, and 24/7 operations lead to skyrocketing electricity bills.

In addition, unsustainable systems break down more frequently, requiring regular repairs or upgrades that drain resources that could otherwise be invested in innovation or growth.

A study by Accenture found that companies sticking to legacy IT systems spend up to 70% of their IT budget on maintenance, leaving only 30% for innovation, modernization, or growth initiatives.

2. Frequent Hardware Replacements

Running legacy systems at full capacity dramatically shortens their lifespan — servers that could last 5 years may fail after just 3. Moreover, server overheating increases failure rates by over 50%, while the cost of downtime can exceed $540,000 per hour for large enterprises (Gartner).

Real-world incidents, like Delta Air Lines’ 2016 outage, prove how ignoring sustainable IT design can lead to massive capital expenditures, operational disruptions, and lost profitability.

3. Lower Operational Efficiency

An unsustainable IT environment is often less automated and more fragmented, leading to wasted person-hours on troubleshooting, slower response times, and increased IT complexity.

employee efficiency
Unsustainable IT infrastructure and work-ecocystem enables lack of motivation and dwindling efficiency

Moreover, overworked and outdated legacy systems are more prone to failures, which can harm productivity and uptime, as they struggle to support future growth or digital transformation. According to a recent 2025 study, systems built on legacy or traditional technologies deliver results 40% slower than those built with modern architecture.

 4. Environmental and Regulatory Penalties

Governments and regulators worldwide are tightening carbon emission standards. Companies that fail to meet these requirements risk incurring hefty fines, facing legal action, or losing their operating licenses.

In March 2025, a subsidiary of Toyota (Hino Motors) pleaded guilty to a multi-year emissions fraud scheme in the U.S. and was fined about US$1.6 billion.

Moreover, unsustainable practices indirectly worsen environmental degradation, and companies that delay adopting sustainable practices may struggle to adapt quickly when regulations become mandatory.

Furthermore, many governments offer tax breaks or grants for green initiatives, such as the IRA provides the Clean Energy Investment Tax Credit and Clean Energy Production Tax Credit, often allowing a 30% credit for investment in eligible clean energy systems.

5. Damaged Brand Reputation

Sustainability is no longer just a compliance checkbox– it is a core part of a brand's identity.

Today’s customers, investors, and employees care deeply about sustainability and eco-conscious businesses. Younger professionals often prefer companies with firm sustainability commitments.

A company that ignores green practices risks alienating eco-conscious consumers and losing credibility in the market; being perceived as irresponsible can harm its credibility and market position.

6. Competitive Disadvantage

Forward-thinking competitors are already leveraging green technologies to reduce costs and build trust. If you do not adapt, your organization risks falling behind in innovation, market value, and customer loyalty.

Sustainable systems enable better performance, automation, and innovation, and an unsustainable IT model is less adaptable in the face of rising energy costs and climate-driven disruptions.

 7. The Hidden Environmental Cost

Inefficient IT contributes significantly to greenhouse gas emissions.

According to industry research, data centers contribute nearly 2% of global greenhouse gas emissions, comparable to the aviation sector. Every outdated server, every inefficient air conditioner, and every unnecessary power cycle adds up to a larger carbon footprint.

Plus, frequent hardware disposal adds to global waste and pollution.

Key Benefits of Adopting Sustainable IT Infrastructure

Let's talk about the benefits of adopting a sustainable IT infrastructure for an enterprise's long-term success.

1. Lower operating costs and better ROI

Energy efficiency, server consolidation, optimized cooling, and smart power management reduce electricity and maintenance bills. Additionally, sustainable systems operate more efficiently, leading to less frequent hardware replacements and lower maintenance costs.

it infrastructure Roi
Case studies demonstrate that targeted efficiency upgrades typically pay back within 1–3 years through energy savings and reduced hardware expenditures.

Major Cloud companies like Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure claim their environments can be multiple times more energy-efficient than typical on-premises setups, resulting in lower carbon emissions and, for many workloads, lower total cost of ownership.

In fact, Google claims a 12% reduction in data center energy emissions in 2024, despite a significant increase in electricity use.

Provider

Saving Energy Emissions 

Reported LoweColocationr Operating Costs / ROI

Google Cloud (Alphabet)

Reduced data center energy emissions by 12% in 2024. DeepMind cooling optimization cut cooling energy by up to  40% in trials.

An IDC study shows a 318% five-year ROI and a 51% reduction in operational costs for organizations migrating to Google Cloud IaaS.

Amazon Web Services (AWS)

Matched 100% of electricity consumed with renewable energy purchases in recent years.

Multiple AWS customer case studies report 20-30%+ reductions in IT costs after cloud moves.

Oracle Cloud Infrastructure (OCI)

OCI publishes power-based carbon estimates for workloads and has committed to renewable matching–public guidance reports progress toward 100% renewable coverage.

Oracle-published analyses indicate lower workload carbon intensity and cost benefits for cloud migrations; expected TCO improvements depend on migration type

Equinix

96% renewable energy coverage in 2023/2024 and an annual average PUE of 1.39, which is a 6% improvement vs. the prior year.

Clients often report lower operating costs per kW and faster time-to-market, and typical customer cost improvements align with broader cloud TCO savings (20-40% range, depending on the mix).

2. Better resilience and lower regulatory risk

Measured emissions and efficiency reduce compliance exposure. Energy-efficient and cloud-optimized systems are less vulnerable to power disruptions or cost spikes.

Sustainable designs often include resilience elements (such as better power controls, on-site renewables, or grid agreements), which are more flexible to regulatory and energy market changes and help protect operations in energy-strained scenarios.

Regulators and customers increasingly reward transparency. Additionally, compliance with emission targets and reporting requirements helps mitigate legal liabilities.

3. Business value and market differentiation

Sustainability can be a revenue driver: customers prefer partners with measurable carbon-reduction plans, employees prefer responsible employers, and investors factor Environmental, Social, and Governance (ESG) considerations into their valuations.

As eco-conscious organizations stand out in crowded markets, companies that lead on sustainability often find it easier to secure large enterprise contracts and favorable financing. A strong sustainability posture protects against reputational risk.

For instance, India's second-largest telecom operator, Bharti Airtel, has partnered with IBM to expand its cloud services through the newly launched Airtel Cloud platform, enabling Airtel Cloud users to access IBM's advanced offerings, including AI-ready servers.

4. Future-proofing for AI and cloud growth

As AI and cloud demand increase, sustainable infrastructure scales more cheaply and allows smarter resource allocation. Using modern, carbon-aware infrastructure planning helps keep energy costs predictable and avoids sudden upgrades or emergency power expenses.

Additionally, modern infrastructure facilitates the seamless adoption of emerging technologies.

Recent analyses indicate that data center electricity demand is growing, but it still represents a manageable share of global power – provided companies act now.

Practical Solutions to Build a Sustainable IT Infrastructure

Sustainability is not just a moral responsibility; it is also a good business strategy. Here’s how organizations can move toward greener IT.

1. Measure First - You Cannot Manage What You Do Not Measure

  • Start with visibility.
  • Utilize carbon accounting tools and open-source solutions, such as Cloud Carbon Footprint, or commercial solutions to estimate cloud and on-premises emissions.
  • Track Scope 1, 2, and 3 emissions for a complete analysis.
  • Once you understand where power and carbon go, you can prioritize the necessary fixes.
  • Install or enable telemetry on servers, racks, and power distribution units
  • Run a baseline carbon/accounting report for the last 12 months to identify the top 10 energy-hungry workloads, and reform them with green materials.

2. Adopt Energy-Efficient Servers and Cloud Infrastructure

Upgrading to energy-efficient hardware or moving to cloud services powered by renewable energy can drastically reduce energy consumption. Virtualization enables multiple applications to run on fewer physical servers, reducing costs and emissions.

Consolidation reduces the total number of physical servers you need to buy and power. ENERGY STAR and academic studies show meaningful energy savings from smart virtualization.

What you can do is:

  • Identify underutilized hosts (CPU < 30%).
  • Move safe, non-critical workloads into virtualized clusters.
  • Use auto-scaling to shut down unused capacity during off-hours.

3. Optimize Cooling and Power Management

Data center cooling is a massive energy drain. Implementing smart cooling systems, free cooling, or liquid cooling can significantly reduce power usage. Increase data center temperature setpoints to industry-safe levels, adopt aisle containment, and modernize chiller controls to optimize energy efficiency.

Utilize power management software such as Schneider Electric's EcoStruxure and Device42 for data centers, and third-party tools like Intel Power Gadget to automate shutdowns during periods of low demand or turn off idle systems.

4. Use a Greener Data Center (Cloud Providers)

The major cloud providers invest heavily in efficiency and renewables.

For many workloads, cloud providers offer better energy efficiency and carbon-matching options. Combine on-premises and cloud solutions to balance performance and sustainability.

Some of the leading and globally recognized green data centers are:

However, the cloud is not a universal win; move workloads selectively and consider its carbon footprint. For instance, move scalable, bursty, or development/test workloads to the cloud first, and keep low-latency, legacy, or data-sovereign workloads where they belong, unless you modernize them.

5. Implement Circular Hardware Lifecycle Management

Make it a habit to refurbish and reuse equipment where possible. Extend the lifespan of hardware through proper maintenance and upgrades.

test
Partner with certified recyclers to dispose of outdated equipment responsibly and choose vendors committed to environmentally friendly manufacturing, take-back programs, and eco-certifications.

This not only reduces waste but also lowers replacement costs.

6. Integrate Carbon Footprint Monitoring Tools

Technologies such as real-time energy dashboards and emissions-tracking platforms can help organizations understand the power consumption of their equipment, their environmental impact, and take appropriate action.

Measure and report carbon emissions to align with regulatory standards and corporate ESG goals, and use monitoring insights to continuously improve infrastructure efficiency

Purchase renewable energy or use providers' carbon-aware compute scheduling to lower Scope 2 emissions and stabilize energy costs for large cloud consumers.

7. Track, Report, and Improve

Make sustainability an operational KPI: energy per transaction, PUE (Power Usage Effectiveness), server utilization, and CO₂ per service request. Report progress to stakeholders quarterly.

You can use Cloud Carbon Footprint (an open-source tool for estimating cloud emissions), Salesforce Net Zero Cloud, and other tools to map Scope 1, 2, and 3 emissions and create investor-grade reports.

8. Foster a Culture of Green IT

Technology alone is not enough. Businesses need to educate employees, incentivize eco-friendly practices, and make sustainability a core organizational value.

Educate teams on energy-saving practices and sustainable IT policies, and encourage practices like powering down unused devices, efficient use of cloud resources, and minimal printing.

Conclusion

The real cost of ignoring sustainability in your IT infrastructure is multifaceted, severe, and rapidly escalating. It manifests as bloated energy bills, costly regulatory risks, deep reputational damage, and a perpetual struggle to attract and retain elite talent.

To remain competitive and relevant, businesses must transition from outdated legacy systems to sustainable, modern IT infrastructure by implementing carbon footprint monitoring tools and integrating advanced solutions such as liquid cooling, energy-efficient server configurations, green computing, and AI-driven optimization.

Do not wait for regulations or public backlash to force your hand – embed sustainability into your entire lifecycle, from procurement to disposal.

Invest in sustainable IT, and you invest in a smarter, more profitable, and infinitely more resilient future. Get in touch with an e-tech offshoring partner like Searchable Design.

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