AI Energy Consumption: Is It a Problem?

Yes, AI’s energy consumption is a problem, as it creates a hefty carbon footprint that grows larger the more the technology is used. Now, companies are working on solutions like more efficient hardware and renewable energy to power their data centers.

Written by Jenny Lyons-Cunha
Published on Jan. 23, 2025
A computer plugged into serves.
Image: Shutterstock

Artificial intelligence is transforming the world at an unprecedented pace, reshaping everything from drug development to companionship. However, behind these groundbreaking innovations lurks a far more sinister global impact: Its staggering energy consumption

What Is AI Energy Consumption? 

AI energy consumption refers to the electricity required to train, deploy and operate artificial intelligence systems, particularly resource-intensive ones that involve machine learning and deep learning. These systems often require a substantial amount of computational power, both during the training phase — when vast amounts of data are processed — and during everyday use. 

AI — especially generative AI — requires enormous computational power, which then translates into high energy usage. Producing a single image using an AI image generator can consume as much energy as fully charging a smartphone, according to research from Hugging Face and Carnegie Mellon University. Even less energy intensive tasks like text generation adds up, with 1,000 outputs consuming about 16 percent of a smartphone charge.

These seemingly small energy demands scale dramatically when you consider the billions of AI interactions happening daily — ChatGPT alone processes roughly 1 billion queries per day. Going forward, as AI becomes increasingly integrated into everyday life, the need to balance its transformative potential with energy efficiency and sustainability is becoming more urgent.

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Understanding AI’s Energy Demands

AI’s energy consumption is driven primarily by the computational power required to train and run advanced AI models, particularly those that rely on machine learning and deep learning. These models are designed to analyze large datasets and make predictions, powering a wide range of tasks involving natural language processing, computer vision and generative AI. As the models grow in size and complexity, so too do their energy demands.

Training the underlying models behind popular tools like ChatGPT involves processing vast amounts of data through billions of calculations, a process that can take weeks or even months to complete. This requires thousands of specialized computer chips, such as graphics processing units (GPUs) or tensor processing units (TPUs), working simultaneously in large data centers. These facilities consume significant amounts of electricity — not only to power the computations but also to maintain the cooling systems needed to keep the hardware operating efficiently around the clock. 

And as new data centers continue to spring up, the energy demands of the AI boom are projected to skyrocket. One 2023 study suggested artificial intelligence could account for as much as 0.5 percent of the world’s electricity consumption by 2027, using as much energy as an entire country. Meanwhile, the International Energy Agency estimates data centers alone could account for 3 to 4 percent of global electricity consumption by 2030, driven in large part by the rapid proliferation of AI.   

 

The Environmental Impact of AI

This surge in AI-related energy usage comes at a significant cost to the planet, driving up carbon emissions, depleting water resources and causing pollution, while also accelerating the extraction of raw materials. 

Companies like Microsoft and Google, two of the most prominent players in AI development, have reported significant increases in their carbon footprints after expanding data center operations. In 2023, Google’s CO2 emissions were nearly 50 percent higher than in 2019, while Microsoft saw a 30 percent spike in emissions since 2020. And both companies have to use millions of gallons of water a day to keep their data centers running efficiently.

AI also puts a strain on non-renewable resources like zinc and mercury, which are mined to build the infrastructure needed to train and run these models. Plus, coal and oil must be drawn from the earth to power these energy-hungry data centers.

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Ways to Reduce AI’s Energy Consumption

There are several ways to reduce AI’s energy consumption, helping to make it a more sustainable tool:

Investing in Renewable Energy and Sustainable Infrastructure

AI’s environmental impact is tied directly to the energy sources powering data centers. By transitioning to renewable energy, companies can significantly reduce their carbon emissions. Google, for example, is building data centers powered by renewable energy generated onsite, with the first one slated for completion by 2027. Similarly, Microsoft and Amazon have committed to making their operations carbon-neutral by 2030 and 2040, respectively. Some companies are even exploring alternative energy sources like nuclear power and hydrogen storage technologies to sustainably power their facilities.

Optimizing AI Operations

Reducing the energy footprint of AI requires smarter, more efficient operations. This includes designing smaller, task-specific AI models for applications that don’t require massive computational power. Companies can also decrease unnecessary energy consumption by reducing the amount of data their systems use. And using AI systems during off-peak energy times or when renewable energy is more abundant can further improve efficiency.

Utilizing Energy-Efficient Hardware

Advances in hardware technology are crucial for addressing AI’s energy demands. Companies like Nvidia are developing specialized chips, such as its new “superchip,” which the company claims can perform AI tasks with 25 times less energy while delivering 30 times better performance. Other innovations, like 3D chips and improved cooling techniques, boost hardware efficiency and reduce energy waste, too. These advancements are critical for meeting the growing demand for AI services while minimizing its environmental impact.

Policy and Collaboration

Regulation and industry collaboration are key to mitigating AI’s energy impact. Governments and organizations like the European Parliament are pushing for transparency in AI energy consumption, encouraging systems to log their power usage. And initiatives like the World Economic Forum’s Artificial Intelligence Governance Alliance aim to develop cross-industry strategies for balancing AI’s benefits and energy costs. 

Frequently Asked Questions

AI’s energy consumption varies depending on the model and its scale, with large-scale deep learning models requiring significant computational power — particularly during the training process.

Yes, AI has the potential to optimize energy systems, improve efficiency in industries and help manage renewable energy sources, ultimately reducing electricity consumption.

While AI’s energy demands are certainly growing, it is unlikely to overwhelm global energy resources — especially with advancements in energy-efficient hardware and a shift toward renewable energy sources.

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