Key Takeaways
- The AI boom has led to a significant increase in carbon dioxide emissions, with estimated emissions in 2025 equivalent to those of the entire city of New York.
- AI-related water use exceeds global bottled-water demand, with estimated water usage reaching 765 billion liters in 2025.
- The environmental impact of AI is largely unseen, with technology companies’ environmental disclosures often insufficient to assess the total datacentre impact.
- The International Energy Agency (IEA) expects datacentre electricity consumption to more than double by 2030, with the largest AI-focused datacentres consuming as much electricity as 2 million households.
- There are growing concerns about the lack of reliability from the National Grid in India, which may lead to the construction of huge diesel generator farms for backup power, resulting in a significant carbon liability.
Introduction to the AI Boom’s Environmental Impact
The rapid growth of artificial intelligence (AI) has led to a significant increase in carbon dioxide emissions, with estimated emissions in 2025 equivalent to those of the entire city of New York. This is according to research published by Dutch academic Alex de Vries-Gao, the founder of Digiconomist, a company that researches the unintended consequences of digital trends. The study found that AI-related water use exceeds global bottled-water demand, with estimated water usage reaching 765 billion liters in 2025. These figures are a cause for concern, as they highlight the significant environmental impact of the AI boom.
The Environmental Cost of AI
The environmental cost of AI is substantial, with estimated greenhouse gas emissions from AI use equivalent to more than 8% of global aviation emissions. De Vries-Gao’s study used technology companies’ own reporting and found that the 2025 carbon footprint of AI systems could be as high as 80 million tonnes. The water used by AI systems is also significant, with estimates suggesting that it could reach 765 billion liters in 2025. This is more than a third higher than previous estimates of all datacentre water use. The environmental cost of AI is largely unseen, with technology companies’ environmental disclosures often insufficient to assess the total datacentre impact.
The Role of Technology Companies
Technology companies have a significant role to play in reducing the environmental impact of AI. However, their environmental disclosures are often insufficient to assess the total datacentre impact, never mind isolating AI use. De Vries-Gao noted that when Google recently reported on the impact of its Gemini AI, it did not account for the water used in generating the electricity needed to power it. Google reported that in 2024 it managed to reduce energy emissions from its datacentres by 12% due to new clean energy sources, but it said this summer that achieving its climate goals was "now more complex and challenging across every level – from local to global". The company cited the slower-than-needed deployment of carbon-free energy technologies at scale as a key challenge.
The Impact of Datacentres
The impact of datacentres on the environment is significant, with the International Energy Agency (IEA) expecting datacentre electricity consumption to more than double by 2030. The largest AI-focused datacentres being built today will each consume as much electricity as 2 million households, with the US accounting for the largest share of datacentre electricity consumption (45%) followed by China (25%) and Europe (15%). The largest datacentre being planned in the UK, at a former coal power station site in Blyth, Northumberland, is expected to emit more than 180,000 tonnes of CO2 a year when at full operation – the equivalent to the amount produced by more than 24,000 homes.
Concerns in India
There are growing concerns about the lack of reliability from the National Grid in India, which may lead to the construction of huge diesel generator farms for backup power, resulting in a significant carbon liability. The consultancy KPMG has warned that this could be a "massive" carbon liability, with $30 billion (£22.5 billion) being invested in datacentres in India. The Indian government needs to take steps to ensure that the growth of datacentres in the country is sustainable and does not lead to a significant increase in carbon emissions.
Conclusion
In conclusion, the AI boom has led to a significant increase in carbon dioxide emissions and water usage, with estimated emissions in 2025 equivalent to those of the entire city of New York. The environmental cost of AI is substantial, and technology companies have a significant role to play in reducing their environmental impact. The impact of datacentres on the environment is significant, and there are growing concerns about the lack of reliability from the National Grid in India. It is essential that technology companies and governments take steps to ensure that the growth of AI is sustainable and does not lead to a significant increase in carbon emissions.
