Cloud computing has a significant environmental impact, contributing between 3% and 4% of global emissions annually, a figure that could double by 2025. Data centers, which are essential for cloud services, are responsible for nearly 1% of energy-related global greenhouse gas emissions, accounting for approximately 300 metric tons of carbon dioxide equivalent in 2020. The demand for compute power requires more energy, natural resources, and leads to higher greenhouse gas emissions.

Data centers are major contributors to environmental challenges, consuming about 1.8% of U.S. electricity and generating a significant portion of tech companies' emissions. They require large amounts of energy not only for operations but also for cooling systems, which can lead to high water usage. For instance, a typical Google data center consumed around 450,000 gallons of water per day in 2021. Additionally, the expansion of cloud facilities raises concerns about land use and noise pollution in surrounding communities.

Many cloud providers are actively pursuing sustainability goals. For example, AWS aims to become water positive by 2030 and achieve 100% renewable energy by 2025. Google has already reached carbon neutrality and plans to run on carbon-free energy at all data centers by 2030. However, skepticism remains regarding the effectiveness of these claims, as some studies suggest that major companies may overstate their sustainability progress. As organizations prioritize sustainable procurement, they will need to critically assess these green claims.