Mitigating Cloud Computing Emissions at the National Level: Policy Responses and Carbon Accounting Methods for Carbon-Efficient Cloud Infrastructure Governance

Abstract

The expansion of data centers and telecommunication networks has raised environmental concerns driven by surging electricity consumption and corresponding greenhouse gas (GHG) emissions. While the environmental impacts of ICT infrastructure are acknowledged, monitoring emissions and policy design remain underdeveloped. This dissertation examines public policy challenges in cloud emission estimation addressing three parameters: (1) existing policy measures to mitigate data center impacts, (2) a novel carbon accounting framework for cloud emissions (consumption-based), and (3) implementation pathways for this framework.

Parameter (1) is assessed via qualitative content analysis of six data center hubs: Singapore, the Netherlands, Ireland, Germany, the USA, and the UK. The study categorizes policy responses as disruptive (halting new licenses), adjustment (implementing stricter standards), or continuation (maintaining deployment despite environmental impacts). The analysis indicates that stricter energy accuracy standards support growth planning, while policies align infrastructure strategies with available electricity capacity.

For parameter (2), the research examines the limitations of the traditional, location-based carbon allocation method. The method overlooks the geographical separation between emission sources and cloud consumers. Using the consumption approach for three of the six hubs (Germany, Ireland, and the Netherlands) from 2017 to 2022 reveals differences in consumption profiles: Germany’s cloud emissions are 75% domestic, Ireland’s 85% foreign, and the Netherlands’ split evenly, highlighting the need for equitable emission accountability.

To address parameter (3), the study identifies four estimation risk sources: emission factors, methods, data sources, and boundary definitions. These risk sources stem from the locationbased method that overlooks the geographical separation between cloud hosts and consumers, which risks disproportionately allocating emissions only to cloud-hosting jurisdictions. The study proposes three policy interventions to mitigate the risks: stricter accounting rules, ecolabeling, and carbon border adjustments. The findings of the three dimensions are summarized into a decision framework to guide governments in monitoring and mitigating cloud emissions.