Global demand for electricity from data centres is surging, growing four times faster than all other sectors, and is on track to exceed Japan’s entire electricity consumption by 2030, according to the International Energy Agency (IEA). The escalating energy use, driven by the rapid expansion of artificial intelligence (AI), is raising concerns about environmental impacts and straining resources, including water supplies.
In Australia, the energy market operator anticipates that datacentre energy demand will triple within five years, surpassing the electricity used by the nation’s electric vehicle fleet by 2030. Authorities are also forecasting significant pressure on drinking water resources. The growth of these facilities, essential for processing and storing the vast amounts of data required by AI, is expected to gradual the energy transition and potentially increase power costs for consumers.
The environmental cost of AI is particularly acute with generative AI models – those that create text, images, and video – consuming “orders of magnitude” more energy than traditional computing methods. Estimates vary, with some studies suggesting a five-fold increase in energy consumption, and potentially even higher depending on the specific model and query. “It’s clear that training models and running datacentres is an energy intensive task,” says Professor Jeannie Paterson, co-director of the Centre for AI and Digital Ethics at the University of Melbourne.
Ketan Joshi, an Oslo-based climate analyst associated with the Australia Institute, argues that consumer software generating content is “uniquely energy inefficient” due to the “vast datasets and computational strain of pattern-matching” required. He draws a comparison to choosing an inefficient mode of transport, stating that querying an AI chatbot consumes considerably more energy than a simple web search or calculation. “You might still get the shopping done, and that single trip alone may not even look all that bad in terms of cost or emissions, but what happens when that’s all of your trips, and when all of society starts doing this?”
A study published in the journal Patterns estimates AI’s global carbon footprint will reach 32.6 to 79.7 million tonnes of CO2 emissions in 2025, with water usage projected to be 312.5 to 764.6 billion litres – comparable to global bottled water consumption.
As awareness of these impacts grows, movements like QuitGPT, which initially focused on concerns about AI surveillance and weaponization, are prompting discussion about the environmental costs. However, Joshi criticizes QuitGPT’s approach, arguing that directing users from one AI platform to another does not address the core issue. He describes it as a “cynical exploitation” of opposition to AI.
The proliferation of datacentres is not without local consequences. These large, warehouse-like facilities require 24-7 operation, with constant lighting and cooling, impacting nearby communities and wildlife. A coalition of energy and environment groups, including the Clean Energy Council, Electrical Trades Union, Australian Conservation Foundation (ACF), and Climate Energy Finance, have proposed “public interest principles for datacentres,” advocating for investment in renewable energy and responsible water usage. ACF chief executive Adam Bandt stated that companies building datacentres “should have to build the renewables and water recycling to power it,” so they don’t “drain our resources.”
AI is increasingly embedded in everyday life, from workplace software and educational tools to chatbots used by banks and government agencies. Generative AI is appearing in supermarket self-checkouts, facial recognition systems in retail stores, and for transcribing medical notes. “We’re becoming immersed in this technology,” says Paterson. “It’s really hard to avoid.”
Despite the pervasiveness of AI, Paterson believes there is still an opportunity to shape its development and use. “We still have a chance to express our views about what and how we want AI to be used.” Individuals can limit their use by switching off devices, unsubscribing from AI platforms, excluding AI results from search queries, and avoiding unnecessary energy-intensive tasks.
Dr. Bronwyn Cumbo, a transdisciplinary social researcher at the University of Technology Sydney, notes that conversations about the relationship between AI, the physical environment, and its social and political implications are intensifying. She emphasizes the importance of raising awareness so communities can critically assess the implications and ask informed questions. “There is an inevitability to AI being part of our lives but how it’s part of our lives is something we can definitely control.”
