This is typically the best argument for using cloud - it is the environmentally beneficial thing to do. And yet, knowing what I know of spotify, I do believe that me serving my own music library is a tad less wasteful than most commercial music streaming operations are.

RAM in the cloud ends up being used by GitHub actions runners that fetch and install the world anytime a shmuck pushes a commit to his confobulator feature branch for the paper clip factory. Multi-cloud deployments of a service nobody asked for. Enterprise architects deploying a service mesh to deliver what can be done in 50MB of memory on a raspi. Running some vectors representing natural language through gigabytes of noise only made useful by some arcane math only to be unable to count letters in words.

I am sure there's also lots of actually efficient use of memory out there. But when enterprises are willing to burn cash, efficient processes or methods are nowhere to be found.