Study shows AI can boost energy efficiency

World Environment Day, celebrated annually, sheds light on the impact of climate change on our planet. Fundamental to environmental preservation is the commitment of South African companies to the environment and sustainability. As a leader in AI infrastructure, Dell is focused on sustainability, reducing energy usage through more efficient hardware, smart power management, cooling techniques and renewable energy sources. We also have programmes to responsibly refurbish and recycle old hardware.

‘Innovation Catalyst’, a recent study promoted by Dell Technologies, shows that South African companies are prioritising a series of key objectives to promote more sustainable practices.

The results identified in the study reveal the most pressing trends and concerns in innovation and sustainability among technology and business leaders in our region. I take advantage of this space to highlight the main findings of the research.

As can be seen, there is a growing recognition of sustainability in the thinking of South African leadership.

The first highlight concerns the use of recycled materials. Standing out as the top priority among all countries surveyed, South African companies are focused on integrating recycled materials into their operations and products as a key measure to reduce their environmental impact.

The second point concerns improving energy efficiency. Optimising energy consumption is a key priority. This includes finding innovative technological solutions to reduce energy consumption and improve operational efficiency.

The third relevant aspect is the minimisation of waste and the focus on the circular economy. Reducing waste and transitioning to a circular economy are significant commitments for South African companies. This reflects a commitment to responsible resource management and the reduction of negative environmental impacts.

These findings demonstrate a clear recognition by South African companies of the importance of environmental sustainability in their operations and business strategies. However, the study also reveals significant challenges that these organisations face on their path to sustainability.

Despite widespread understanding of environmental regulations and expectations of transparency and accountability from technology providers 30% of companies surveyed admit they will struggle to comply with these regulations and broader ESG (Environmental, Social and Governance) standards.

_{Doug Woolley, GM and VP of Dell Technologies SA}

The study also showed that while many local companies claim to have a clear sustainability strategy and are prioritising the use of sustainable products, there is still much to be done. Only 45% are using data to understand and reduce their environmental impact, suggesting significant room for improvement in terms of integrating technology into sustainable decision-making.

Meanwhile, the study highlights the scenarios in which business leaders in our region are working to achieve better results in their environmental protection policies. In this sense, the data provided show a positive trend towards improving energy efficiency in the technology sector:

Experimenting with as-a-service solutions: In South Africa, 84% of respondents are experimenting with as-a-Service solutions to manage their IT environment more efficiently. This suggests an active commitment to reducing energy costs and carbon footprint while also seeking to optimise the performance of IT operations.

Use of alternative cooling solutions: 79% of IT leaders report implementing alternative cooling solutions, such as air or liquid cooling, to reduce energy consumption in their data centres. This demonstrates an awareness of energy efficiency in IT infrastructure and an effort to adopt more sustainable practices.

Moving AI inference to the edge: 78% are performing AI inference at the edge to improve energy efficiency, for example in smart buildings. This decentralised approach to AI has the potential to reduce the load on core data centres and optimise energy consumption in real time.

Focus on sustainability in multicloud environments: 46% of IT leaders express a desire to improve environmental sustainability in multicloud environments. This indicates a recognition of the importance of reducing carbon footprint and energy costs in managing multiple clouds.

We cannot fail to highlight the impact of generative Artificial Intelligence (AI) and the concerns surrounding it on sustainability ambitions. Especially when we think about:

First, AI and the push for sustainability goals. Forty-five percent of South African respondents believe that the use of AI will compromise environmental sustainability efforts. This indicates widespread concern about the potential negative impacts of AI in terms of energy consumption and greenhouse gas emissions. And then, the environmental limitations of AI.

Nearly 30% of respondents feel that environmental concerns, such as the increased energy consumption required to train AI models, are hindering the adoption of the technology. This highlights the need to actively address these issues to ensure AI is used responsibly and sustainably. In South Africa, the first priority is to accelerate customers’ journey to AI. To do so, we are offering our customers a free test environment where we will work with you to build a proof of concept around your specific AI requirements.

As can be seen from our study data, there is a growing recognition of sustainability in the thinking of South African business leaders. Although companies in the region are taking steps to integrate more sustainable practices, they still face significant challenges in terms of compliance, awareness and adoption of technologies that truly drive environmental sustainability in their operations.

To find out more about Dell’s GenAI Acceleration Workshops, contact Linda Matshiqi at l.matshiqi@dellteam.com.

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