According to a new report from Allianz Trade, data centers worldwide are projected to emit up to 286 million metric tons of carbon dioxide in 2025, which is approximately 57% higher than the International Energy Agency's (IEA) previous estimates.
This accelerating emission rate is due to the rapid advancement of Artificial Intelligence (AI) technology, which requires substantial computing power and electricity consumption.
Currently, AI systems account for 15% to 20% of global data center electricity consumption, and by 2030, this figure could reach as much as 40%.
If power supply systems are not rapidly transitioned to clean energy, data center carbon emissions by 2030 could more than double, potentially causing climate-related losses valued at $154 billion annually.
Additionally, by 2030, water consumption for data center cooling systems could reach between 1.3 trillion to 1.8 trillion liters annually, an amount equivalent to Switzerland's annual water consumption.
The environmental impact of data centers largely depends on the type of energy they use, and the report notes that centers using renewable energy emit significantly less carbon dioxide compared to those relying on coal and fossil fuels.
Ref: Technology Innovation