Introduction

The underlying infrastructure of OVHcloud’s Cloud services consists of datacentres connected by a global telecommunication network which carries data to and from end users.

The core network (backbone) features nodes (also known as Points of Presence – PoPs) and long-distance/metropolitan spans (also known as links) which connect the nodes.

The PoPs are located in colocation facilities hosting optical transmission systems (Dense Wavelength Division Multiplexers – DWDM), IP routers, switches and servers.

The links are based on optical fibre routes interconnecting the PoPs and the datacentres, following a topology designed to maintain traffic in the event of multiple span cuts (for resiliency purposes). Two operating models are used:

• Operating model 1: OVHcloud owns the dark fibre cable or rents a pair of dark fibre cables (through long-term Indefeasible Right of Use – IRU) and operates its own DWDM systems to activate wavelengths (10, 100, 400 Gbps point-to-point transmission signals) on top of it.
• Operating model 2: OVHcloud leases the wavelengths activated by long-distance telecommunication operators on their international network (carrier’s carrier market).

In this study, terrestrial and submarine transmission infrastructures are differentiated as their physical realities are dissimilar.

Scope of the study

Items covered by the study:

• POPs (colocation buildings and their technical environment)
• Fibre cables and their underlying infrastructure
• All active telecommunication equipment hosted in the PoPs as well as the line equipment hosted in amplification sites.

Items excluded by the model:

• OVHcloud datacentres network equipment (accounted for in OVHcloud datacentres’ impact inventory)
• ISP (Internet Service Providers) network as well as customer premises equipment.

Environmental impact of the PoPs

1. Electricity consumption (use impact)

OVHcloud measures the electrical consumption of the PoP’s equipment, and of the technical environment of the colocation facility in which it is hosted. All the ancillary systems are taken into account, therefore the PUE (Power Usage Effectiveness) of the sites is de facto included in the model.

The impact factors (per kWh of electricity) are retrieved from the Ecoinvent database.

• Network equipment (manufacturing / distribution / end of life impacts)

OVHcloud reviews all the equipment deployed inside each PoP, including checking their commissioning date (for amortisation purposes).

The equipment reference is used to retrieve the impact factors from the Negaoctet and Resilio v2024.6 databases (amortised over six years). Should the exact model not be found, a similar generic reference is chosen.

• Facilities technical environment (manufacturing / distribution / use/end of life impacts)

Based on the electricity consumption of the technical environment of the colocation facility, the impact factors of each PoP (per contracted kW per year per kWh of electricity) are retrieved from the Ademe PCR datacentre and cloud database.

Environmental impact of the terrestrial links

1. Optical fibre cable (manufacturing / distribution / end of life) impacts

Operating model 1: OVHcloud manages the transmission layer.

The optical fibre cable related impacts are calculated by allocating two strands out of a 288-strand cable. The allocation is then corrected to reflect the 25-year ramp-up before reaching 100% usage of the cable over a lifespan of 60 years. This leads to 0.88% of allocation.

The impact factors (per km) are retrieved from the Ecoinvent database.

Operating model 2: OVHcloud leases a wavelength to a carrier’s carrier.

The assumption is that the carrier follows the same optical fibre cable allocation rules (0.88%). In addition, the impact is pro-rated considering the ramping up of the carrier’s optical systems (leading to 4.32% of 0.88% of allocation):

• Maximum number of channels per DWDM systems: 48
• Maximum load rate of DWDM systems: 85%
• Six-year ramp up to reach maximum load rate of the DWDM system
• DWDM system lifespan: 8 years

In both operating models, 10% of the civil work (trench, ducts) impacts necessary to lay the optical fibre cables are allocated.

• Line optical systems (manufacturing / distribution / use/end of life impacts)

Operating model 1: OVHcloud manages the transmission layer, therefore amplifier types and locations are known. (De)Multiplexers are excluded as they are already accounted for in the environmental impact of the PoPs (see previous section).

Operating model 2: OVHcloud leases a wavelength to a carrier’s carrier. The assumptions are as follows:

• (De)Multiplexers and repeaters are chosen using standard equipment
• Typical distance between two regenerator sites: 500 km
• Typical distance between two repeater sites: 90 km
• Maximum number of channels per DWDM systems: 48
• Maximum load rate of DWDM systems: 85%
• Six-year ramp up to reach maximum load rate of the DWDM system
• DWDM system lifespan: 8 years

Once the optical equipment mapping has been done, the emissions factors for each link are then retrieved from the Ademe ISP – Negaoctet database.

Environmental impact of the submarine links

Submarine cable system (manufacturing / distribution / maintenance / end of life impacts) and electricity (use impact)

Operating model 2: OVHcloud leases a wavelength to a carrier’s carrier from PoP to PoP.

The climate change impact is retrieved from the 2025 Lisbon Suboptic study for both transatlantic and transpacific cable systems (per km and per year).

For the other impact factors (abiotic and water resources use), the submarine cable systems are modelled based on the following assumptions:

• (De)Multiplexers and repeaters are chosen using standard terrestrial equipment
• Cable is considered as a standard MV electrical cable
• Typical distance between two landing stations: 7000 km
• Typical distance between two repeaters: 80 km
• Maximum capacity: 200 Tbps for Transpacific / 350 Tbps for Transatlantic
• Maximum load rate of the DWDM systems: 100%
• Ten-year ramp up to reach Maximum load rate of the DWDM system
• Submarine cable system life span: 25 years

Results (per year)

Conclusion

The above presented methodology allows to assess accurately the environmental impact of our backbone with a multi-factorial approach covering GHG emissions, water consumption and abiotic ressources usage. On the carbon emissions side, the findings are that the previous methodology we used (based on a Renater research paper) in our GHG emissions reporting was overestimating OVHcloud backbone impact by a factor 2.

These themes are not simple. In addition to the core function of AI tools – for example, considering what an AI app does, how it does it, and whether bias is present – most businesses are starting to realise that they need to consider the deeper ‘AI supply chain’.

This is not just altruistic. A number of LLM tools are currently facing the risk of lawsuits for copyright infringement, because they may have been trained without due content permission. AI tools that present biased results are quickly exposed in press, leading to reputational damage and a loss of customer trust. Some countries also have legislation permitting data usage for economic intelligence purposes – but in another region, this may represent a data breach. AI has also received negative publicity for ‘running hot’ and consuming large amounts of energy and water in datacenters.

However, AI can also be a tremendous force for good – if handled correctly. So, what should businesses be thinking about so that they get the most from AI, without incurring undue commercial or reputational risk?

1- Consider Sovereignty from the Start

Understand your data ‘supply chain’ from the very beginning of the process. For example, if you’re using an external LLM for a chatbot, where was this developed? Which data was it trained on, and was this data acquired ethically?

“AI can often be a black box when it comes to processing data,” says Lex Avstreikh, Strategy Lead for Stockholm-based AI firm Hopsworks. “It’s far too complex to show how the system arrived at any one decision. But if you can show people the inputs and the outputs, then that goes a long way to building transparency and trust.”

2- Plan for a Sovereign Future

It’s important to think about where data will be during its future lifecycle – will you be running in an external datacenter, and where will data be in transit and at rest? Where are the headquarters of the datacenter company in question and what does this mean from a regulatory and handling perspective? Perhaps most importantly, will your customers be happy with all of these arrangements?

This was the decision journey faced by Swedish AI firm Ebbot. In July 2020, the Data Protection Commission v. Facebook Ireland case, commonly referred to as Schrems II, resulted in the Court of Justice of the European Union (CJEU) issuing a decision that added more regulations to data protection and processing principles. Ebbot recognised the importance of data security and compliance and thus made it a priority to store and process all data within the EU.

3- Location, location, location

Location isn’t just an important sovereignty concern – it’s also crucial to sustainability. Although Scandinavia may have very green energy, it’s easy to forget that many cloud providers will offer geographical ‘computing zones’ rather than defined locations, which can result in a less green footprint. CPU- and GPU-intensive tasks like model training should be run in green energy zones wherever possible, and are rarely latency-dependent; consequently, you can locate them far away if necessary.

When your AI app goes into production, also remember that backup and redundancy are a necessity – but will also increase your carbon footprint. Consider having a ‘low power’ or passive backup if commercially feasible – it will take longer to bring online in the case of emergency, but you’ll be consuming less power.

4- Always Consider Necessity

A lot of organisations only consider hardware efficiency and power consumption during the development process, but green software is rapidly gaining popularity. Having efficient code which is still fit for purpose can have a huge impact on power consumption, particularly if you’re building an app for very broad use. “We’ll definitely see more efficient and specific LLMs, because they’re absolutely needed,” added Avstreikh.

Although organisations are often considering the cost of development, with FinOps initiatives, we are also seeing the dawn of GreenOps, ensuring that technology is as green as possible from end to end. To that effect, consider benchmarking the CPU and memory usage of your application, because less hardware-intensive apps are usually less power-hungry.

5- Re-use, recycle

Developing bespoke code can make sure that it’s as lean and efficient as possible, but it can also use needless computing power to develop. Many technology organisations will offer PaaS offerings that can automate common parts of the application development and deployment process. For example, consider our AI Endpoints solution, which helps developers to access other AI models, from Bert to Mistral to Llama, all using a simple API.

This is not an easy process, but establishing responsible AI conduct in your organisation’s DNA will avoid complications further down the road, and also show to customers that you are considering data – including theirs – in a responsible, secure way. With increasing numbers of organisations tracking not only their scope three emissions, but also their data supply chains in a more comprehensive fashion, sovereignty and sustainability are two clear ‘musts’ for any modern AI company.

If you’re a startup or scale-up building an AI solution, and would like to work with a sovereign, sustainable cloud provider in turn, you can find more information about OVHcloud – including our cloud credit scheme – on our startup hub.

The most important reason to embrace sustainability is that not doing it will make our world more and more uninhabitable. The datacentre industry has a particular responsibility in terms of global warming. According to ARCEP, the digital world accounts for three to four percent of global greenhouse gas emissions. Within these, the cloud accounts for approximately fifteen percent. To compound the matter, a 15MW datacentre uses an average sum of 390,000 gallons of water a day! This may cause profound pressure on local water resources. More sustainable, OVHcloud water-cooled sites can reduce this to around 55,000 gallons.

If we are willing to make significant progress, we’re going to have to be honest about it. And as anyone who works in the construction industry knows, you can’t build on shaky foundations.

Trouble with transparency

With the quality improvement disciplines of Kaizen and Six Sigma introduction in 1986, many organisations were able to radically improve their operations. Motorola, for example, saved up over £13bn by using the two methods together. Over half of the Fortune 500 uses elements of each to optimize how they operate.

However, very few – if any – observers shouted about how these organisations had created waste or spent money wrongly prior to adopting new approaches. This is not the case with sustainability.

There’s no doubt that we stand at an urgent and pivotal moment in the course of the world’s approach to sustainability. That said, it’s critical to point that a culture of shaming organisations in the process of genuine change is counterproductive. Stern approaches are – of course – necessary for wasteful, inconsiderate organisations that prioritise profit over the environment, but it doesn’t help to heap shame on businesses on their journey to a sustainable future. We need to encourage a culture of change, not embarrassment.

And let’s be honest: being open about sustainability and carbon emissions is not an easy thing. Changing organisations for the better is a complex, political and often expensive journey. If we are to build a sustainable future, we need both an honest, solid foundation and a radical commitment to transparency. Perhaps this is an unfashionable view. But we’re all adults here – we know that change is hard, sustainability is complex, and cloud migrations don’t happen overnight!

Furthermore, a strong sustainability strategy can have many benefits. It can reduce power bills. Re-using old components means not buying new ones. Over a third (38%) of businesses would reject a supplier with a poor (or no) ESG strategy. This tends to show that sustainability can clearly be more than just a cost-centre when done correctly.

So, yes, a culture of frankness and transparency can and will open up uncomfortable areas for improvement but it can also create a virtuous circle of continuous change. It requires a broad bench of business stakeholders to truly examine ‘everything the light touches’ but by breaking it down into discrete boxes, it becomes more manageable.

How to establish a transparent approach to sustainability?

Creating an effective sustainability strategy is a complex and multifactorial endeavour, but the first step requires accurate measurement. It’s currently a prerequisite for large organisations in the UK to declare their Scope 1 and Scope 2 emissions. Surprisingly enough, not Scope 3. Yet, Scope 3 emissions tend to be the biggest tree in the woods. For instance, OVHcloud’s scope 3 represent 55% of its total emissions, but it is more difficult to measure.

But once organisations have this understanding, it’s incredibly informative. For us, the carbon footprint associated with IT component manufacturing represents 41% of our total carbon footprint, with electricity representing 42%. This often surprises people but it actually underlines my point. Unless you have a complete understanding of your emissions, you can’t possibly hope to probe the battlefield effectively. Given that we’re on the same team and fighting the same enemy, it’s doubly important that we measure and monitor data consistently. Meaning, using industry-agreed benchmarks assessment standards like PuE and WuE, within established frameworks like ISO standards.

My proposed approach to measurement tends to shine a light on many areas that organisations have not considered. However, if we can embrace this methodology standard, we will improve our ability to tackle the real carbon problem. Not just the easy, visible one. That said, there are a number of factors that can make the journey easier:

• Executive Sponsorship: Sustainability and transparency need to be considered at every level. If there isn’t buy-in from the datacentre manager and the C-suite. It’ll be an uphill struggle. Leaders with a sustainability and transparency-first mindset can create a culture of honesty and sustainability. This is key to permeate everything the company does.
• Community: Radical transparency often reveals problems that organisations can’t solve by themselves. For example, recycling server motherboards and component packing foam is extremely challenging, but there are startups focused on exactly these issues. Similarly, there are many third parties that offer consultancy around effective emissions measurement and that can help with establishing sustainability strategies. 
• Avoidance is Better: Recyclingis good, but re-use and purchase avoidance is better. For example, re-using old (well-tested!) server components in slower, low-cost servers is better than disassembling and recycling the metals and plastics, although the latter is necessary eventually. At the same time, moving into an existing building is better than commissioning a new build (where possible). Construction has a very significant carbon footprint.
• Data isn’t (always) Knowledge: Even with effective measurement, teams may often have to admit that they just don’t know things. For example, it can be difficult to assess whether a certain level of performance is good or bad. In some cases, you may have to wait for the ecosystem to catch up. But by putting a stake in the ground, you’re establishing a point of comparison and a benchmark for the industry to improve on or aspire to.
• Concrete Targets: Committing to external carbon and water-efficiency targets and joining initiatives like the Climate Neutral Datacentre Pact is a public commitment to sustainability, and a show of accountability. It shouldn’t be seen as something to be ‘held over’ you – rather, it’s a motivator and goal. However, it’s crucial that these targets are set within public frameworks (for example, ISO standards) so that we’re all measuring in the same way.
• Celebrate Success: Transparency and sustainability are exceptionally challenging for datacentre organisations – we use a lot of electricity and have a significant carbon footprint. However, it’s also important to celebrate success when targets are achieved to maintain motivation and momentum going forward.

There’s no question that radical transparency is an uncomfortable and difficult process. Operating within stringent boundaries and finding creative solutions to issues will unquestionably challenge our teams, leadership organisations and established new ways of thinking.

If we can take up to the challenge and create a continuous cycle of improvement, then adopting new sustainability strategies will lead us as an industry in an interesting, profitable, exciting, and more importantly, incredibly necessary and meaningful direction. And that is a very, very worthwhile goal indeed.

For modern businesses, sustainability is crucial because it affects all aspects of growing and running the firm, including how customers, employees and investors see and value them. By integrating sustainability into their operations, leaders can set their business up for long-term success and create opportunities for innovation and growth, whilst also addressing important social and environmental issues.

Many startups have seized this opportunity already. According to the Global Entrepreneurship Monitor (GEM) in 2020, over 60% of startups in the United States and Europe consider sustainability to be an important factor in their business operations.

Establish a sustainability strategy from the start

As a startup, it can be tempting to focus on achieving financial success via the usual methods. However, it is important to consider sustainability early in the journey, because factors such as your carbon footprint, brand values and implementing sustainable supply chains can all have a significant impact on both your company’s long-term financial viability and its reputation.

Adopting a formal sustainability strategy – also known as Environmental, Social, and Corporate Governance (ESG) – is the best way to ensure success. Shân Millie, Data & Tech-Enabled Value Generation expert at Bright Blue Hare, believes a startup business plan must incorporate ESG readiness from the beginning. She says:

“It is no longer possible to separate financial success from either the societal context in which the firm operates, or the societal impacts of what it does, sells, makes or invests in. Startups need to understand, anticipate and meet the expectations of the established firms they need as partners, investors, clients – those who build as ‘ESG ready’ will have significant advantages over those playing catch-up”.

4 good reasons to adopt a sustainability strategy

Cost Saving

Sustainability and cost savings are closely connected, as efforts to be more sustainable often involve reducing waste and increasing efficiency, which can result in cost savings. For example, implementing energy-efficient practices or using sustainable materials can lead to lower energy bills and reduced waste, saving your company money in the long run.

Credentials

Both consumers and talent are keen to find companies that prioritize sustainability. In addition, TotalJobs recently found that 60% of UK job hunters research a potential employer’s sustainability commitments before accepting a position, so incorporating sustainable practices can help to improve your company’s reputation and attract customers, new talent and funding.

ESG Requirements

Although startups (of a certain size and turnover) might not be required to report their environmental practices to regulatory agencies, their investors might require this information. In the long term, it is expected that non-financial reporting will be a necessary part of winning new business for suppliers to larger companies. Therefore, it will become increasingly important for these suppliers to effectively manage their relationships with their larger customers, who are required to report on non-financial information. Differences in ESG reporting frameworks remain between US, UK and EU, but the regulation landscape is changing quickly. You need to be ready to be compliant and ESG-ready for any markets that are important to you.

Investors

Companies with green credentials are increasingly attractive to investors, with climate impact often among the criteria investors use to assess suitability. CNBC recently reported that global sustainable funds reached record highs in 2020, with over $51 billion in new investments – more than double the previous record set in 2019.

Simple steps to get started

There are several ways for startups to make positive changes for the environment – and cut costs too. These may include switching to a paperless system, providing bike vouchers to commuting employees, recycling and properly disposing of waste, and turning off unused devices and lights in the office. These actions can not only help to protect the environment, but also reduce costs for the organisation.

Think about establishing clear and achievable objectives to improve sustainability. This can include anything from eliminating single-use plastic, setting a minimum number of hours for team members to volunteer for environmental causes, or setting aside a certain percentage of revenue for sustainable initiatives. It’s important to set goals that are realistic and achievable, as this can help to ensure that progress is made towards improving sustainability in a meaningful way.

Selecting the right suppliers is an effective way for businesses, including technology companies, to improve their sustainability. Even if a tech company does not manufacture or sell physical products, there are still opportunities to make positive changes in the supply chain. It’s important to consider the environmental impact of all products and services offered, including financial services, recruitment, equipment, and refreshments. Tech businesses can demonstrate their commitment to sustainability by partnering with suppliers that align with their values and are taking steps to become more environmentally friendly. This can help to reduce the overall environmental impact of the business and send a clear message about the company’s priorities.

Where does choosing the right cloud provider fit in?

The cloud has the potential to significantly reduce the energy and resources needed for computing, but it is important to choose a provider that uses renewable energy, has a commitment to sustainability and disclose its data. Not only is this good for the environment, but it can also help to reduce costs and improve the resilience of your business. By choosing a sustainable cloud, you can reduce your carbon footprint and play a role in combating climate change.

The last word

In summary, sustainability should be a priority for startups. Incorporating sustainable practices can help to reduce costs, improve efficiency, and contribute to a positive social and environmental impact. By considering sustainability early in the journey, startups can set themselves up for long-term success and a more sustainable future.

At OVHcloud we are truly committed to offering a sustainable and affordable cloud. Our datacentres are built on sustainable water-cooling technology, and we have full control of our supply chains. Discover more about our unique approach here.

Want to learn more about the cloud and sustainability? Why not attend our FREE webinar! Learn more here. We hope you join us for the discussion on 15^th February!

As a startup, one of the best ways to benefit from the cloud is to join a cloud provider startup program. These programs often offer free credits to access cloud solutions and support. As a leading European cloud hyperscaler with 20 years in the industry, OVHcloud offers a well-established startup program. Read more about the OVHcloud Startup Program.