Rising energy prices could spell trouble for telecommunications companies

Europe is bracing for a "long-lasting” energy crisis. The price per gallon for diesel in the U.S. jumped by nearly $2 across the board in March. Australia is scrambling to secure its fuel supply as gas stations run out of diesel. Little over a month in, the war in Iran is already having far-reaching impacts and now threatens to hit operators where it hurts: the bottom line. Data centers get a lot of flak for their energy usage—and rightfully so—but telecommunications operators also account for a substantial portion of global energy consumption. Telephone companies used approximately 340.6 Terawatt hours of energy in 2024, up from 330.5 TWh in 2023, according to MTN Consulting. And, in turn, that means a good chunk of their budgets goes toward powering their networks.