On-Premises versus Cloud Computing: A Comparative Analysis of Energy Consumption

As the digital economy expands, the demand for energy by data centers increases, becoming a critical issue for global energy sustainability. According to the International Energy Agency data centers are now responsible for about 1.5% of global energy consumption, with projections suggesting a substantial increase by 2030. This surge underscores the urgent need for a thorough analysis of energy use in these facilities, particularly given their significant environmental impacts and the operational challenges they pose. In response, our approach involves a review of existing literature and secondary data analysis to evaluate energy consumption patterns and efficiency measures in both environments. The analyses highlight that cloud data centers, despite their scalability and shared infrastructure benefits, still pose considerable energy challenges due to high operational demands and low server utilization rates. Conversely, on-premises data centers exhibit variable energy consumption based on size, architecture, and management practices. Our findings underscore the importance of optimizing both cloud and on-premises infrastructures to enhance energy efficiency. In conclusion, this study provides critical insights into the environmental impacts of different data center configurations, advocating for continued research and development of energy-efficient technologies and strategies.