Energy: optimizing consumption and increasing efficiency

Artificial intelligence, cryptocurrencies, streaming services – technological development is proceeding at a rapid pace, and with it the energy demand of digital applications is increasing. We are pursuing the goal of keeping our energy consumption stable and increasing energy efficiency despite growing data volumes and grid expansion. In recent years, we have been able to continuously reduce energy intensity – i.e. our energy consumption in relation to the volume of data transmitted. The expansion of renewable energies also plays an important role in more climate-friendly grid operation

We deal in more detail with the topics of energy consumption, mix and efficiency as well as climate protection in our Sustainability Statement 2024. You can also find more information on climate protection here in the CR report.

Milestones achieved, ongoing projects and goals

Since 2021, we have been sourcing 100 % of our electricity from renewable energies throughout the Group. To increase energy efficiency and stable energy consumption, we are focusing on modernizing our grid infrastructure, energy-efficient grids and data centers, and purchasing renewable energy directly.

Grid infrastructure: innovations for energy efficiency

The operation of mobile and fixed network infrastructure in Europe and the USA accounts for the largest share of our energy needs. We want to avoid that the constantly increasing data consumption of users is accompanied by a corresponding increase in energy consumption. That is why we are working to make the use of electricity through our grids more efficient.

In Group-wide innovation projects, we are developing new approaches to our grid operation: for example, we are modernizing the grid infrastructure, focusing on operational energy-saving functions and more energy-efficient technologies. In Europe, for example, we used so-called power-saving features in mobile communications in the reporting year. They automatically switch off certain functions when the grid is under particularly low load, so that energy consumption decreases.

We describe further measures to stabilize energy consumption and increase energy efficiency in the “Deep Dive”. Closely linked to our approach to energy-efficient networks are also the topics of “More Sustainable Buildings” and “Raising Awareness among Employees” here in the CR report.

ESG KPI "Energy Intensity"

We have been able to steadily reduce energy intensity (i.e. our energy consumption in relation to the volume of data transmitted) in recent years. In the reporting year, energy intensity fell by around 20 %. Investments in modern technology have made this possible – as has the shutdown of outdated network technologies. Detailed information on our ESG KPI Energy Intensity can be found in our Sustainability Statement 2024. As an indicator of the increase in efficiency in our data centers, we use the so-called PUE value (Power Usage Effectiveness). Detailed information on this key figure can be found at the bottom of this page.

Energy Intensity – Data volume

in kWh/Terabyte

Expanding renewable energies: electricity supply contracts and large-scale battery storage systems

We are increasingly purchasing electricity directly from renewable sources, acquiring corresponding guarantees of origin or concluding electricity supply contracts with electricity producers, so-called Power Purchase Agreements (PPAs). These supply contracts provide us with long-term price stability. At the same time, we can use PPAs to help drive the expansion of renewable energies and increase their share in the electricity mix.

At the end of 2024, we had already purchased 36.4 % of our electricity Group-wide via PPAs. In Germany and Europe, the figure was 23.8 %. Group-wide, we intend to further increase the share of PPAs in our total electricity consumption in the coming years. We present how the PPA share has developed since 2022 in the “Deep Dive”.

In the reporting year, our subsidiary PASM commissioned the first large-scale battery storage systems at the Münster and Bamberg sites. They make it possible to temporarily store large amounts of electricity from renewable energies and use it flexibly. In this way, we can increase the self-consumption of our self-generated electricity and thus increase the share of renewable energies we use. In addition, it contributes to the stability of the power grid.

USA: diversified energy portfolio

T‑Mobile US is pursuing the ambitious goal of reducing energy consumption per petabyte of data by 95 % by 2030 compared to 2019. By the end of 2024, energy consumption had already been reduced by 73 %.

In the U.S., we are diversifying our energy portfolio, which helps insulate the company from potential price fluctuations in the energy market and brings more renewable energy to the electric grid. This is possible through investments, e.g. in medium- to long-term virtual power purchase agreements (VPPAs) with wind and solar projects, long-term solar energy contracts or even shorter-term retail renewable agreements and unbundled RECs (renewable energy certificates).

Diversified energy portfolio (T‑Mobile US)

T‑Systems: strong performance, efficient performance

T‑Systems focuses on the operation of data centers and services for business customers, among other things. Since 2021, our data centers worldwide have been sourcing 100 % of their electricity from renewable energies – either directly, through the conclusion of PPAs, through their own energy generation or by purchasing guarantees of origin. We continuously improve the energy efficiency of our data centers and measure the increase in efficiency via the PUE value (more on the calculation in the Deep Dive). The average global PUE value of our T‑Systems data centers was 1.56 in the reporting year. The PUE value for T‑Systems’ data centers in Germany was 1.53.

Energy efficiency of T-Systems data centers

Data centers are becoming more energy-efficient (PUE factor)

For more energy-efficient operation, T‑Systems pays attention to the use of energy-efficient server and storage hardware, optimized cooling during the operation of data centers, and automated software features, for example. In the medium and long term, we are pursuing the goal of further developing our cloud applications from an energy efficiency perspective (green coding). T‑Systems has been participating in the “EU Code of Conduct on Data Centre Energy Efficiency” since 2014. This is a voluntary code of conduct with the aim of motivating operators and owners of data centers to reduce energy consumption and thus the negative effects on the environment, economy and energy security. At the end of 2024, T‑Systems was operating a total of 16 FMO (Future Mode of Operation) twin-core data centers at seven locations in Europe, as well as four local, customer-specific data centers. Since 2024, all nine internal FMO twin-core data centers have been listed in the EU Code of Conduct. In addition, T‑Systems joined the Climate Neutral Data Centre Pact (CNDCP) in 2021. We have been a certified member since 2023.

Looking ahead

In the coming years, we want to further stabilize our energy consumption by continuously increasing our energy efficiency – despite rapidly growing data volumes. An important focus is also on the expansion of renewable energies and large-scale storage solutions.

Deep Dive for experts

Management & Frameworks

• Deutsche Telekom’s subsidiary PASM obtains the energy for the German Telekom Group companies. Its energy management system is certified according to the international standard ISO 50001.
• We have achieved our goal of sourcing 100 % of our electricity requirements from renewable energies throughout the Group by the end of 2021. To emphasize this commitment, we have joined the global RE100 initiative. Its goal is to promote the purchase of electricity from renewable sources.

Relevant standards

• Global Reporting Initiative (GRI)
  • GRI 302 3-3 (Energy)
  • GRI 302-1 (Energy)
  • GRI 302-2 (Energy)
  • GRI 302-4 (Energy)
  • GRI 305 3-3 (Emissions)
• Task Force on Climate-related Financial Disclosures (TCFD)
  • The most important key figures for measuring and managing climate-related opportunities and risks
• GSM Association (GSMA) Indicators for Telecom Providers
  • GSMA-ENV-03 (Energy consumption)

Further measures to stabilise energy consumption and increase energy efficiency

• We have already firmly anchored the topic of energy efficiency in the selection of new technologies in the architecture and design phase through specifications and specifications. This applies, for example, to the lighting, monitoring and, above all, cooling of our systems.
• We are consistently pushing ahead with the expansion of photovoltaics at our sites. To achieve more sustainable and efficient energy generation at our sites, we cooperate with various suppliers in the field of renewable energies. At the same time, there is a focus on the use of electricity storage systems and the implementation of intelligent load management. Another example of sustainable innovations is the use of waste heat from our ICT network nodes (information and telecommunications technology). The thermal energy is used specifically to heat a building complex, which both reduces energy consumption and improves the CO₂ balance.

ESG KPI “PUE”

We are continuously improving the energy efficiency in our data centers ^a with various measures. One indicator of the increase in efficiency of our data centers is the “Power Usage Effectiveness (PUE)” value, which we determine according to the method of the data center standard EN 50600. The PUE value results from the ratio between the total electrical energy consumed by the data center and the electrical energy consumption of the IT.

Data Center PUE

ESG KPI “Renewable Energies”

• We use the “Renewable Energies” ESG KPI to measure our progress. In addition, we have developed Group-wide parameters that we use to evaluate electricity purchases in all national companies with regard to sustainability aspects.

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Renewable Energy

	2024			2023			2022			2021
	Da	EUb	Group	Da	EUb	Group	Da	EUb	Group	Da	EUb	Group
Electricity from renewable energy (in GWh)	1,882	1,564	11,053	1,911	1,540	11,316	2,265	1,576	12,252	2,510	1,845	12,270
Total electricity consumption (in GWh)	1,882	1,564	11,053	1,911	1,540	11,316	2,265	1,576	12,252	2,506	1,845	12,270
Renewable Energy (ESG KPI)	100 %	100 %	100 %	100 %	100 %	100 %	100 %	100 %	100 %	100 %	100 %	100 %
Certificates	70 %	66 %	44 %	74 %	68 %e	46 %	53 %	63 %	50 %	36 %	82 %	53 %
Power Purchase Agreementsc	30 %	17 %	36 %	26 %	5 %e	32 %	23 %	0 %	28 %	5 %	0 %	23 %
Direct purchased	0 %	17 %	19 %	0 %	26 %e	21 %	23 %	22 %	23 %	59 %	18 %	24 %
Self-generationc	–	–	–	0.18 %	0 %e	0.05 %	0.1 %	0 %	0.04 %	0.1 %	0 %	0.04 %
a Until 2022: D = DT Group in Germany, since 2023 Germany segment is depicted. b Until 2022: EU = National companies in Europe excluding Germany and T-Systems, since 2023 Europe segment is depicted. c From 2024, the share of self-generation is no longer shown separately. Instead, it is included in the share of power purchase agreements. d After the transition to 100 % electricity from renewables, no remaining country mix is shown, as a complete transition to electricity from renewables has taken place. e Value has been corrected compared to the publication in the previous year.

• Even though we prefer to cover our electricity consumption through PPAs, our own energy generation and direct purchases, we still have to resort to guarantees of origin due to limited capacities.

Renewable Energy in the Group

in MWh