Low Enterprise IoT Adoption Despite Sustainability Benefits

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Industry-wide implementation of IoT remains relatively low, sitting at 35%.
Major technology providers ABB, Schneider Electric and IBM are highlighting the potential for data centres to reduce emissions with IoT sensor technology

Major technology providers are highlighting the potential for data centre operators to reduce emissions through Internet of Things (IoT) sensors. Schneider Electric, ABB and IBM are implementing these IoT solutions to support the improvement of energy efficiency and waste management across multiple industry sectors.

A report from ABB, Making the most out of OpEx, reveals that while 96% of industrial decision makers acknowledge digitalisation's importance, industry-wide implementation of IoT remains relatively low, sitting at 35%. This is despite evidence to suggest the technology could reduce carbon emissions.

Stuart Thompson, President of ABB's Electrification Service Division, says: "This gap presents an opportunity, and it underscores a broader narrative about digitalisation's role in enhancing both operational efficiency and circularity."

Stuart Thompson, President of ABB’s Electrification Service Division

Stuart adds: "Right now, we have the chance to move beyond efficiency and productivity as sole primary goals, and reinforce our role as positive contributors to society more broadly. We can embrace digitalisation for better resource management and sustainable practices."

ABB: Industrial IoT implementations face adoption hurdle

IoT refers to networks of connected devices containing sensors and software that gather operational data. These can range from smart thermostats to industrial machinery and could enable the development of new data centre applications and services, including predictive maintenance, asset management and real-time analytics.

This innovation could not be more timely, as the data centre industry grapples with increasing sustainability challenges. Energy-related greenhouse gas emissions, including electricity, heat and transport, currently account for 73% of global emissions.

Notably, the International Energy Agency (IEA) reported earlier in 2024 that energy efficiency improvements could reduce emissions by 3.5 GtCO₂e from 2017 levels, representing a 12% reduction. In industrial applications, this figure rises to a potential 34%.

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To target emissions, Schneider Electric’s partnership with EcoDataCenter demonstrates potential to support energy management and improve efficiency in its data centres. Schneider has implemented its EcoStruxure platform at EcoDataCenter in Sweden to combine three layers of technology innovation, including IoT-connected devices with analytics software to measure operational efficiency.

As a result, EcoDataCenter can generate analytical reports on operational efficiency and sustainability metrics, while recycling waste heat into the local power grid. 

This represents a practical application of IoT technology in addressing data centre energy consumption.

"We're committed to helping our clients harness AI sustainably," explains Gwenaelle Avice Huet, Executive Vice President of Europe Operations at Schneider Electric.

"We support our customers on their paths to energy efficiency and sustainability by integrating AI technologies into our solutions. A prime example is our collaboration with EcoDataCenter in Sweden which utilizes our EcoStruxure platform."

Gwenaelle Avice Huet, Executive Vice President of Europe Operations and Member of the Executive Committee at Schneider Electric

The EcoStruxure implementation represents a comprehensive approach to IoT deployment in data centres. The platform integrates energy management, building automation and industrial control systems while applying analytics to optimise maintenance schedules.

Gwenaelle adds: "This platform combines IoT, AI, and cloud computing capabilities to enable integrated energy management, building automation and industrial control, all while applying advanced analytics to optimise energy efficiency and maintenance for transformative operational sustainability."

Broader IoT applications: Waste management

Another significant aspect of data centre sustainability is waste management. Currently, facilities produce a significant amount of electronic waste (e-waste), including via data centre construction, operation, decommissioning and outdated or broken hardware.

As a result, the industry requires robust waste management to prevent environmental pollution.

Leading tech giant IBM has partnered with Hera, an Italian multi-utility company processing 5.7 million tonnes of waste annually, to implement IoT-based waste management systems across its operations.

IBM supports Hera to implement AI that increases recycling - Credit: IBM

The solution uses IBM Cloud Paks, a containerised software platform, to collect and analyse data from IoT devices including truck-mounted cameras. It identifies recyclable materials and reduces manual sorting requirements across Hera's 89 processing plants.

The IoT system developed by IBM for Hera demonstrates the technology's potential beyond energy management. By pulling information from multiple sources, the system enables more efficient resource recovery while reducing operational costs through automation of previously manual processes.


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