Sustainable cloud computing has become a critical goal for organisations across industries, including financial services. Research shows companies that lead on sustainability often enjoy lower costs of capital and superior market returns, while also managing risk better[1]. In the financial services sector, investors and regulators are increasingly scrutinising environmental impact, pushing banks and insurers to cut carbon footprints. How can embracing sustainable cloud computing help? In this post, we’ll explore how moving to the cloud, with the right guidance from an AWS or Azure consulting partner, can help firms achieve their sustainability goals.
Cloud Efficiency: A Sustainable Advantage
Migrating IT workloads from on-premises data centers to the cloud can dramatically shrink your carbon footprint. One study finds that moving to the cloud can cut carbon emissions by up to 84% compared to traditional infrastructure[2]. The reason is simple: hyperscale cloud providers operate highly optimised data centers that achieve efficiency at a scale individual companies can rarely match. For example, Amazon Web Services (AWS) has data centers that are up to 4.1× more energy efficient than typical on-premises facilities, which can reduce the carbon footprint of workloads by as much as 88–99% in the best cases[3][4]. Likewise, Microsoft reports that running solutions on Azure can be up to 98% more carbon efficient and 93% more energy efficient than on-premises deployments[5]. These efficiencies come from cutting-edge server hardware, custom cooling systems, and the ability to utilize renewable energy at scale. In fact, consolidating computing in the cloud reduces electricity use through greater efficiency, which directly lowers emissions – especially when cloud data centers are powered by renewable sources[6].
Key sustainability benefits of cloud migration include:
- Lower carbon emissions: Cloud providers invest in energy-efficient technology and renewables, so your workloads generate less CO2[6].
- Efficient resource use: By scaling resources on-demand (for example, using serverless architectures), the cloud avoids the waste of idle servers, cutting energy use.
- Greener power mix: On average, AWS customers use a 28% cleaner power mix for their computing, thanks to AWS’s renewable energy investments[4]. Microsoft’s Azure data centers are also increasingly powered by wind, solar, and other clean energy sources.
- Transparent tracking: Both AWS and Azure offer tools to measure and optimise your cloud carbon footprint, helping you track progress toward sustainability goals.
Sustainability in Financial Services
For financial services firms, embracing cloud sustainability is becoming essential for long-term success. Financial institutions must focus on sustainability within their cloud operating models to reduce environmental impact and meet emerging regulations[7]. Banks, insurers, and asset managers are under pressure to disclose and cut their emissions, and moving to cloud infrastructure can be a smart part of that strategy. By retiring energy-hungry private data centers and shifting to AWS or Azure, financial institutions can significantly lower their operational carbon footprint. This not only helps meet internal Environmental, Social, and Governance (ESG) targets but also can reduce costs through improved energy efficiency. As a bonus, demonstrating green IT practices builds trust with customers and investors. A sustainable IT approach can strengthen your brand and even attract new business, since clients increasingly prefer environmentally responsible partners[8]. In short, cloud adoption lets financial organisations align tech innovation with climate action, a win-win for business and the planet.
AWS and Azure: Committed to a Greener Future
Major cloud providers are leading by example with ambitious sustainability commitments. AWS, as part of Amazon’s Climate Pledge, is committed to reaching net-zero carbon by 2040[9]. Already in 2024, AWS achieved powering its operations with 100% renewable energy, and it’s continuously innovating to improve data center energy and water efficiency[10]. Microsoft has pledged to be carbon negative by 2030, meaning it will remove more carbon than it emits, and to eliminate all its historical emissions by 2050[11]. Both companies are pouring investments into renewable energy projects and greener technologies. For example, Azure datacenters run on up to 98% renewable electricity in some regions and use advanced cooling to minimise water usage[5][12]. Crucially, AWS and Azure also provide customers with analytics tools to monitor and reduce cloud emissions. AWS offers a Customer Carbon Footprint Tool that tracks the emissions from your AWS usage[13], while Microsoft’s Azure portal provides an Emissions Impact Dashboard to report the carbon footprint of your Azure services. These tools give you transparency and data to optimise your cloud usage for both cost and carbon efficiency. The takeaway: AWS and Azure aren’t just platform providers, they’re sustainability partners investing in technology and guidance to help you achieve your sustainability targets.
Partnering for Sustainable Success
Adopting cloud for sustainability is easier with the right expertise. Working with an AWS consulting partner or Azure consulting partner can accelerate your journey toward greener IT. Experienced cloud partners have in-depth knowledge of best practices, from designing energy-efficient architectures to scheduling workloads in low-carbon regions, that can maximise the sustainability benefits of AWS and Azure. They also understand the compliance landscape in sectors like finance, ensuring your cloud strategy meets both regulatory requirements and sustainability objectives. At Vaxowave, for instance (an AWS Advanced Consulting Partner and Azure Solutions Partner specialising in financial services), we’ve seen firsthand how thoughtful cloud adoption can reduce IT emissions while driving innovation. By partnering with experts who align cloud solutions with your sustainability goals, your organization can achieve a balance of environmental responsibility and business performance.
In conclusion, sustainable cloud computing offers a powerful pathway for organisations, especially in financial services, to meet their goals. With AWS and Azure’s efficient, green infrastructure and a knowledgeable AWS and Azure consulting partner to guide the way, you can modernise your IT environment and lighten your environmental footprint. Embracing the cloud’s sustainability advantages today will not only help protect our planet, but also position your business for resilient, future-ready growth. Adoption of sustainable cloud computing is smart business[1], and it’s an investment in a greener tomorrow.
Sources:
[1] [5] [8] Sustainability Considerations in Your Cloud Strategy – Cloud Adoption Framework | Microsoft Learn
https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/inform/sustainability
[2] [6] [11] Cloud Sustainability Statistics in 2025 [Future of the Green Cloud]
https://www.cloudwards.net/cloud-sustainability-statistics/
[3] [9] [12] Sustainable Cloud Computing | Amazon Web Services
https://aws.amazon.com/sustainability/
[4] Reducing Your Organization’s Carbon Footprint with Amazon CodeGuru Profiler | AWS DevOps & Developer Productivity Blog
[7] Sustainability – Financial Services Industry Lens
[10] AWS Cloud – Amazon Sustainability
https://sustainability.aboutamazon.com/products-services/aws-cloud
[13] Sustainability | AWS Cloud Financial Management
https://aws.amazon.com/blogs/aws-cloud-financial-management/category/sustainability/
