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The environmental cost of AI: Can innovation be sustainable?

ESG
By Steph Edwards
13 February 2025
Digital, Brand & Creative Strategy
Insight, Research & Evaluation
artificial intelligence
News

AI’s Hidden Costs 

Artificial Intelligence (AI) is revolutionising industries, streamlining processes, and enhancing productivity. But beneath the surface, AI's rapid advancement comes with a significant environmental cost-one that is growing at an alarming rate. 

The rising energy demand 

According to ITV News, data centres accounted for just over 1% of the UK's overall electricity consumption in 2020. However, projections suggest that by 2030, this figure could soar to nearly 7%-equivalent to the power usage of eight million homes. The main culprit behind this surge? AI. 

Unlike traditional computing tasks, AI models require enormous amounts of power. Training sophisticated machine learning models and processing AI-generated responses consume significantly more energy than conventional data processing.  

To put this in perspective, an AI prompt is estimated to consume nearly 10 times the electricity of a standard Google search, as reported by the International Energy Agency. 

And it's not just electricity that's under pressure. 

Impacts on water usage  

Data centres housing AI systems generate immense amounts of heat. To prevent overheating, these centres require extensive cooling mechanisms, which, in turn, demand large quantities of water.  

This is a concern as many data centres are in regions already facing water scarcity. High water consumption worsens local shortages, affecting agriculture, drinking water supply, and biodiversity. 

To give you an idea, it is estimated that a single request for ChatGPT to generate a 100-word email consumes approximately half a litre of water. Multiply that by the millions of AI interactions happening daily, and the numbers become staggering.  

Finding Solutions 

Given AI's increasing role in our daily lives, addressing its environmental impact is crucial. According to the United Nations Environment Programme (UNEP), there are several strategies that governments and tech companies can implement to mitigate AI's environmental footprint: 

One of the biggest challenges is the lack of reliable data on AI's environmental impact. Countries should work to develop standardised procedures for measuring AI-related energy and water consumption. 

Tech companies can innovate to design AI models to be more energy-efficient, reducing the power required for processing. Additionally, implementing water recycling systems (which some of the tech giants have now started doing) and reusing hardware components can help minimise resource depletion. 

Encourage data centres to transition to renewable energy sources, such as wind or solar power, can significantly lower carbon emissions. Companies can also invest in carbon offset programs to compensate for their environmental impact. 

Governments should incorporate AI's sustainability considerations into broader environmental policies, ensuring that AI development aligns with long-term climate goals. 

The Path Forward 

AI is undoubtedly transforming the way we work, communicate, and innovate. However, its environmental footprint cannot be ignored. By prioritising sustainable AI practices, governments, tech firms, and individuals can work together to ensure that technological progress does not come at the expense of the planet. 

The key question remains: Can we make AI both smart and sustainable? The answer depends on how swiftly we act.