Powering the TMT Sector: Sustainable Energy for Tech, Media & Telecom
Bloom is a trusted onsite power partner to technology, media, and telecommunications (TMT) companies, with over 100 MW installed across the sector
TMT Sector
a Glance
Just as the networking world has moved from a centralized to a distributed edge model, so too has the critical power infrastructure that supports it. The future of reliable, resilient connectivity in the TMT sector depends on solutions that address the energy challenges of today, including sustainable power and advancing decarbonization efforts. This focus on sustainability in tech is driving TMT companies to adopt innovative energy solutions.
Resilient and highly efficient microgrids powered by advanced energy technology enable new opportunities for TMT companies in their quest to navigate and accelerate the energy transition to a lower-carbon future and help build a stronger, smarter electric system for us all.
Quick Facts About the Technology, Media, and Telecommunications (TMT) Sector
Telecom operators face increasing pressure from rising energy costs and the need to meet decarbonization goals. Energy spending, historically significant at about 5% of revenue, has surged in recent years, with energy cost increases outpacing sales growth by over 50%.[2]
New 5G deployments require 2-3 times more power than 4G sites but offer 20-50% efficiency improvements over earlier models due to innovations like active antenna units (AAUs) and sleep mode technology. However, the need for additional cell towers increases overall energy consumption. Despite these advancements, operators face the challenge of balancing higher energy demands with sustainability goals.[3]
Key Energy Considerations in
Technology, Media, and Telecommunications
Overcoming Energy Challenges in the TMT Sector
Maximizing Uptime
Many technology and telecom hubs (e.g., Silicon Valley, Austin TX, New York) are located in regions particularly susceptible to extreme weather, elevating the need for resilient power solutions across the telecom ecosystem that can provide coverage through outages. Implementing robust emergency power systems is crucial to maintain continuous operations during such events. This is especially critical for AI data centers, which require uninterrupted power to maintain complex computational tasks.
Lowering Emissions
Sustainability is central to TMT sectors’ missions. Many put these strategies at the center of their brands and constantly innovate across the value chain to reduce environmental impacts. For example, a reliable data center power supply can help lower emissions and support greener infrastructure.
Sustainable Solution
Fuel cells generate electricity through an electrochemical process rather than combustion. This avoids emitting harmful criteria air pollutants that cause severe respiratory diseases and poor air quality worldwide. Fuel cells reduce carbon emissions compared to grid and combustion-based technologies, are also fuel-flexible, and can run on biogas or hydrogen for carbon-neutral emissions options.
Controlling Costs
Given the enormous amount of data processing and transmission happening in the TMT sector, energy cost represents a significant share of OPEX and a cost item managers are trying to control closely.
Predictable Solution
In addition to avoiding outage-related costs that can reach into millions of dollars, Bloom’s solution enables customers to hedge against volatility and price escalation by fixing a large portion of their electricity cost, providing multiple financing options and flexible term lengths.
TMT Sector FAQs:
1. What is TMT in industry?
TMT stands for Technology, Media, and Telecommunications. The sector encompasses companies operating in information technology, digital media, broadcasting, telecom services, and internet infrastructure. The TMT industry is characterized by rapid innovation and plays a crucial role in driving digital transformation, connectivity, and advancements in fields like AI, 5G, cloud computing, and sustainable energy solutions.
2. What does TMT stand for?
TMT stands for Technology, Media, and Telecommunications. This acronym describes a diverse range of industries that focus on technology development, media content creation, and telecommunications services. The TMT sector includes companies involved in software, hardware, digital media, telecom services, and network infrastructure.
Resources
Get in Touch with Bloom Today
[1] ING Think. Lower Energy Prices Provide a Tailwind for Telecom Operators. https://think.ing.com/articles/lower-energy-prices-and-declining-wage-growth-provide-tailwind-for-telecom-operators/
[2] McKinsey. The Growing Imperative of Energy Optimization for Telco Networks. https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-growing-imperative-of-energy-optimization-for-telco-networks
[3] Deloitte. TMT Predictions 2024: Telco Sustainability Surges as Carbon Footprint Decreases. https://www2.deloitte.com/us/en/insights/industry/technology/technology-media-and-telecom-predictions/2024/tmt-predictions-telco-sustainability-surges-as-carbon-footprint-decreases.html