Impact of AI on the Environment
A pair of recent studies has shed light on the effects of Artificial Intelligence (AI) on our planet, and the findings are alarming. According to Greenpeace, the production of semiconductors used in AI chips has led to a significant increase in emissions, with a fourfold increase reported in 2024. This analysis was conducted using publicly available data.

Emissions from Semiconductor Production
The manufacturing process for semiconductors, primarily occurring in Taiwan, South Korea, and Japan, relies heavily on fossil fuels, contributing to the increase in global emissions. Companies like NVIDIA depend on manufacturers such as Taiwan Semiconductor Manufacturing Co and SK Hynix Inc. for components. Greenpeace estimates that global electricity requirements for AI could experience a 170-fold increase by 2030.

Global Electricity Requirements
Another study by The International Energy Agency (IEA) examined the impact of AI on electricity demand in the US. The analysis suggested that power consumption by AI-adjacent data centers could account for half of the growth in electricity demand by 2030. In fact, the US economy may consume more electricity for processing data than for manufacturing energy-intensive goods like aluminum, steel, cement, and chemicals.

Data Center Energy Consumption
The IEA report also noted that electricity demand from global data centers could more than double by 2030 to around 945 terawatt-hours (TWh), exceeding the entire electricity consumption of Japan. This represents a 30-fold increase over the electricity consumption of Ireland.

Potential for Innovation
Proponents of AI argue that the technology will lead to scientific discoveries that accelerate innovation in fields like batteries and solar photovoltaic (PV) technology, ultimately reducing energy needs. However, this outcome is uncertain, leaving many to worry that the AI race could hinder global decarbonization goals.

Transition to Renewable Energy
Greenpeace recommends that governments in eastern Asia transition to renewable power for chip manufacturing. However, countries like South Korea are already planning to build gas-fired power generation plants, while Taiwan is expanding liquid natural gas projects and grid infrastructure, further exacerbating the problem. The path forward remains unclear, and the environmental impact of AI development hangs in the balance.