How Telefónica Cut its Energy Use Amid a Network Boom

Telco networks are carrying more connected devices than ever before.

With the AI boom accelerating and data traffic climbing across telecoms networks, improving energy efficiency is no mean feat.

But Telefónica says its networks now use less energy than they do a decade ago.

The operator has reported a 12% reduction in energy consumption between 2015 and 2025, despite traffic across its infrastructure increasing twelve-fold over the same period.

As telco operators are facing relentless demand for connectivity, these figures point to how network modernisation and automation are reshaping the economics of mobile and fixed infrastructure.

At the heart of the effort sits a major overhaul of Telefónica’s network estate, with fibre, 5G and automated network management helping the company push more data through its systems while reducing the amount of electricity required to do it.

The company says it now consumes 29 MWh per petabyte of traffic, a figure that stands 92% lower than in 2015.

Fibre and 5G reshape network efficiency

For operators across Europe, balancing traffic growth with energy costs is a core operational challenge as networks expand to support cloud services, streaming platforms and connected devices.

Telefónica's next-generation infrastructure might just be the answer.

The company highlights fibre and 5G deployments as the main contributors to efficiency gains.

Fibre networks are up to 85% more efficient than legacy copper infrastructure, while 5G is up to 90% more efficient than 4G, according to Telefónica.

Alongside hardware upgrades, the operator leans heavily on automation through its Autonomous Network Journey programme.

The initiative uses AI and automated management tools to optimise how infrastructure operates and consumes power.

“Today we are able to move huge volumes of data using only a fraction of the electricity we needed a decade ago,” says Maya Ormazabal, Global Director of Sustainability at Telefónica.

“Our energy efficiency demonstrates that digitalisation and sustainability can go hand in hand, strengthening the resilience of our networks and the digital ecosystem and bringing us closer to our purpose of being the best gateway for citizens, businesses and public administrations to digital technologies.”

Energy efficiency is not only about reaching sustainability targets, as avoiding harsh electricity costs are also a key concern for telco operators. 

Electricity costs are volatile across many markets and network infrastructure faces mounting pressure from rising temperatures and extreme weather conditions.

Telefónica says its optimisation work helps mitigate risks linked to energy pricing and environmental conditions while supporting operational performance across its networks.

Decarbonisation targets move ahead of schedule

The efficiency improvements also feed directly into Telefónica’s wider emissions strategy.

The operator says it has cut total emissions by 49% over the last decade, including emissions generated across its value chain.

Operational emissions from Scopes 1 and 2 have fallen by 91% since 2015, allowing the company to move beyond its 2025 target of a 90% reduction.

Telefónica also reports a 34% reduction in relevant Scope 3 emissions since 2016.

Scopes 1 and 2 cover direct operational emissions and emissions linked to purchased energy, while Scope 3 includes indirect emissions generated across suppliers, logistics and other external activities connected to the business.

Renewable energy plays a major role in the reductions. Telefónica says renewable electricity now accounts for 100% of energy use across its main markets.

The operator points to supplier collaboration and circular economy programmes as part of its decarbonisation work.

Telefónica aligns its climate targets with a 1.5°C pathway validated by the Science Based Targets initiative, known as SBTi. The company aims to achieve net-zero emissions by 2040.

Telcos face growing pressure on energy performance

The figures arrive as telco operators face growing scrutiny over the environmental impact of expanding digital infrastructure.

AI services, hyperscale cloud platforms and connected devices continue to increase network traffic volumes across fixed and mobile networks.

At the same time, operators are investing heavily in fibre expansion, Open RAN deployments, edge computing and 5G standalone architecture. Those upgrades create pressure to keep energy use under control while maintaining network quality and coverage.

Telefónica frames its strategy around separating business growth from power consumption: a challenge now shared across much of the telco sector.

Reducing the energy cost per bit of data transferred has become a commercial and operational priority as much as an environmental one.