Context: Artificial Intelligence (AI) encompasses technologies that simulate human thinking and decision-making. While basic forms of AI have existed since the 1950s, AI adoption has advanced rapidly in recent years. However, the rapid development of AI comes with environmental consequences.
Relevance of the Topic: Prelims: Environmental consequences of Artificial Intelligence.
Expansion of AI market
- The global AI market is valued at $200 billion and is projected to contribute up to $15.7 trillion to the global economy by 2030. E.g.,
- Announcement of the Stargate Project by the US, involving more than $500 billion in AI infrastructure investments over four years.
- In India, Reliance is planning to build the world’s largest data centre in Jamnagar, in partnership with Nvidia.
- India has also announced plans to build its own LLM (large language model) to compete with DeepSeek and ChatGPT.
- However, rapid expansion of AI brings not only opportunities but also risks, particularly at environmental costs.
Environmental impact of AI
- High Energy Consumption and Carbon emission:
- Data centres (the backbone of AI operations) consume enormous electricity and contribute 1% of global greenhouse gas emissions.
- A simple search request made through ChatGPT (an AI-based virtual assistant) consumes 10 times the electricity of a Google Search, as reported by the International Energy Agency.
- Training advanced AI models, such as GPT-3, can emit up to 552 tonnes of carbon dioxide equivalent — comparable to the annual emissions of dozens of cars.
- E-Waste Crisis and Environment Destruction:
- Rapid expansion of data centres is also fuelling a growing e-waste crisis, which often contains hazardous substances, like mercury and lead.
- Microchips that power AI need rare earth elements, which are often mined in environmentally destructive ways.
- Water Depletion:
- Data centres use million litres of water during construction and, once operational, cool electrical components and maintain operational temperatures.
To mitigate these environmental risks, governments and the private sector must proactively work towards embedding sustainability into AI ecosystem design.
Way Forward
- Adopting standardised global procedures to measure the environmental impact of AI.
- Governments can develop regulations that require companies to disclose the direct environmental consequences of AI-based products and services.
- Tech companies can make AI algorithms more efficient, reducing their demand for energy, while recycling water and reusing components where feasible.
- A study by Google has found that the carbon footprint of LLMs can be minimised by a factor of 100 to 1,000 through optimised algorithms, specialised hardware, and energy-efficient cloud data centres.
- Instead of collecting new data or training models from scratch, businesses can adapt pre-trained models to new tasks.
- Using energy-efficient hardware and ensuring regular maintenance can also significantly minimise emissions.
- Encourage companies to green their data centres, including by using renewable energy and offsetting their carbon emissions.
- Locating data centres in areas with abundant supply of renewable resources can help lower the carbon footprint.
- At COP29, the International Telecommunication Union emphasised the urgent need for greener AI practices.
Sustainability needs to be incorporated into the very design of the AI ecosystem to balance innovation and environmental responsibility. This will harness the transformative potential of AI without compromising the Earth’s future.

Regard Magister Akuntansi
How do transformer models work?