Energy & Sustainability Tracker: Telcos, 2025

Telco energy use flatlined in 2024, but GHG emissions fell again due to renewables and scope 3 efforts

Climate change continues to worsen, and every sector must contribute to addressing this escalating challenge. The ICT sector is no exception. Within ICT, network operators consume enormous amounts of energy and generate a substantial carbon footprint. Although most ICT growth comes from webscale operators (hyperscalers) investing in data centers for cloud and AI, the telecommunications (telco) sector remains the larger energy challenge. In 2024, telcos consumed 340.6 Terawatt hours (TWh) of energy, or 340,572 GWh - more than double the consumption of webscale operators. Telcos also have a significantly larger carbon footprint, due to weaker adoption of renewable energy sources. For the networking industry to make meaningful progress toward sustainability, the telco sector requires the most attention.

Economics also play a critical role. Telcos spend an average of 4-5% of their operating expenses on energy, with some spending more than 10%. The volatility of these costs is a major concern. Natural disasters, war, and trade restrictions can all influence the price of carbon-based energy. Climate change itself - through intensified extreme weather and population displacement - will make reliance on imported carbon sources even more risky. In contrast, renewable energy from local wind, solar, or hydro sources tends to exhibit greater price stability. The broader shift toward carbon neutrality could therefore help stabilize the cost structures of telcos.

Report Overview

This report provides a detailed assessment of energy usage and sustainability within the telecommunications industry. It analyzes energy consumption, use of renewable energy, and emissions for 66 telcos representing roughly 85% of the global market. It examines the global industry and presents metrics on usage, efficiency, and emissions across all companies. Rankings highlight leaders, recent improvers, and laggards that often require supplier support to enhance efficiency and renewable adoption.

For all 66 telcos, the report presents data on energy usage and Scope 1 and 2 emissions drawn from corporate ESG reports. A subset of 50 companies reports enough Scope 3 data for a value chain analysis. Another subset of 32 companies publishes traffic data, enabling evaluation of traffic carried per unit of energy consumed and related metrics.

This analysis extends a five-year research effort into network operator energy usage. The study relies on the firm’s proprietary telco financial tracker, which includes market data through June 2025. It is supplemented by newly collected financial data, including Net PP&E figures for all 66 telcos from 2019 to 2024.

Scope and Limitations

The report analyzes telecom operators - telcos - that provide access-based services directly to end users based on ownership of spectrum or regulator-issued licenses. This includes fixed, mobile, cable TV, and satellite providers. The sample of 66 companies is large and representative across all regions and segments, making this one of the best resources available for tracking energy usage in the telco sector.

Although the telco business model has evolved, many initiatives outside the core market have been reversed or failed to scale, as illustrated by AT&T’s acquisition and later spinoff of Time Warner. Some telcos belong to larger corporate groups and own assets outside traditional telecom networks, such as data centers or retail outlets. However, nearly all energy consumed by telcos is tied directly to network infrastructure - typically 80-90% of total consumption. For mobile operators, the radio access network (RAN) alone often accounts for 50-60% or more. Data centers generally comprise less than 10% of energy usage, though this can reach 20-30% and may rise as Telco AI deployments expand.

The database focuses on pure telcos or the telecommunications divisions of larger entities. In a few cases, such as SoftBank and Comcast, only corporate-level energy data is available. In those cases, the analysis includes corporate-level energy figures but only telco-level financial metrics. As a result, metrics such as energy consumed per unit of revenue may be slightly overstated for these companies.

Data and Methodology

For the 66 telcos included, the report presents financial metrics alongside energy-related indicators: total energy and electricity consumption, renewable energy share, and greenhouse gas emissions by type. Data covers the years 2019-2024.

Compiling a consistent dataset posed challenges. Unlike financial reporting, energy disclosures lack standardized requirements. Companies differ significantly in what they report, and ESG data is not always audited. The research team reviewed dozens of sustainability reports, relying on verified data when possible and estimating where necessary to create comparable time series. The result is a highly objective and comprehensive review.

Financial data is sourced from the latest Telco Tracker and supplemented with newly gathered Net PP&E data. Energy and emissions figures generally reflect company-reported values, but estimates were made when reporting gaps existed. All 66 telcos provide energy and Scope 1-2 data. Scope 3 data is available for 50, and traffic data for 32.

A company may claim renewable electricity use when it (1) generates renewable power on-site; (2) purchases renewable electricity from the grid while retaining renewable energy certificates (RECs); (3) owns off-site renewable generation and retires the RECs; or (4) signs purchased power agreements (PPAs) with third-party green power suppliers, taking ownership of the corresponding RECs.

If companies update historical data, the database is adjusted accordingly, as revisions typically reflect improved methodologies. Data is not restated in ways that would alter the reported scope.

A Note on Public vs. Private Companies

In the telecom industry, nearly all major companies are publicly traded and publish some form of ESG report. While quality and transparency vary, few large telcos provide no energy data at all. Experience reviewing hundreds of these reports enables informed judgments regarding data credibility and the need for estimates.

One caveat is the small reporting bias introduced by the focus on public companies. Public firms face greater pressure to adopt renewable energy and reduce emissions. Companies excluded from the sample - often private entities - likely have weaker environmental performance. Examples include Altice Europe and BSNL. Scope 3 reporting introduces a similar issue: companies that omit full Scope 3 disclosures may be less environmentally responsible than average. When estimating global Scope 3 totals, the analysis assumes that companies without data have the same average footprint as those included, which likely results in a slight underestimation of the industry’s environmental impact.