A recent study finds that the rapid expansion of AI and cloud computing is significantly increasing the environmental footprint of data centers, particularly through higher electricity demand, carbon emissions and water usage, CNBC reports.
Much of this growth is being driven by AI workloads, which require large-scale, continuous computing power and are far more energy-intensive than many traditional digital services. As a result, data centers are placing increasing pressure on electrical grids, especially in regions where power generation still depends heavily on fossil fuels, which amplifies associated greenhouse gas emissions.
The study also points out that cooling systems, which are essential to prevent overheating in server facilities, contribute heavily to both energy consumption and water use, further adding to environmental strain.
While the industry is making progress in improving efficiency, such as through more advanced cooling technologies, optimized hardware and greater use of renewable energy, these improvements are not currently keeping pace with the rapid growth in demand.
Because AI development and cloud services are expanding so quickly, overall emissions and resource use continue to rise despite efficiency gains. Researchers warn that unless there is faster adoption of clean energy, stronger infrastructure planning and more aggressive efficiency improvements, data centers could become a major and growing contributor to global climate impacts over the next decade.