The expansion of artificial intelligence is dramatically intensifying electricity demand within the technology sector, driving a noticeable rise in carbon emissions worldwide. Recent analysis by global organizations monitoring digital industry practices reveals that while many major companies are increasingly investing in renewable energy, their overall environmental footprint continues to grow.
A joint report from the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA) examined the energy consumption and greenhouse gas output of 200 leading digital enterprises as of 2023. Their findings underscore AI's pivotal role in accelerating energy use, with data centers—critical for AI operations—consuming electricity at a pace four times faster than the global average increase.
The sector’s electricity usage, tallying 581 terawatt-hours, now represents over two percent of worldwide consumption. The report highlights that just ten technology giants, including major Chinese telecoms and global cloud and hardware providers, account for half this figure. Notably, the top ten firms collectively consume more power annually than countries like Spain or Australia.
Despite prominent firms such as Amazon, Meta, Alphabet, and Microsoft making strides in sourcing clean energy, emissions continue climbing. In 2023 alone, operational greenhouse gases reported by these companies equated to nearly 300 million tonnes of CO2 equivalent—a footprint comparable to the combined yearly emissions of Argentina, Bolivia, and Chile. This rise stems chiefly from increased electricity needs driven by AI advancements and broader digital infrastructure.
While the growing awareness of environmental challenges has encouraged transparency, with more companies disclosing emissions data and setting net-zero targets, these commitments have yet to translate into a reversal of emissions growth. Approximately half of the surveyed companies have pledged to achieve net-zero emissions by mid-century or earlier, and a growing number issue dedicated climate reports and extend emissions accounting to include supply chain impacts.
Addressing this, the report urges digital companies to deepen data verification, enhance climate strategy ambition, and broaden collaboration across industries. It also spotlights investments in emerging clean energy sources, including interest in nuclear microreactors that, while carbon-free, introduce concerns about waste management.
The ITU emphasizes that the tech sector’s role is crucial for enabling a sustainable digital future, especially as global climate negotiations approach. However, the evidence signals that only through sustained, coordinated action focused on rigorous science-based targets and transparent reporting can the increasing environmental burden of AI be effectively managed.
Image: DIW-Aigen
Read next: From Dinner to Downloads: How Apple’s App Store Became a $1.3 Trillion Giant
A joint report from the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA) examined the energy consumption and greenhouse gas output of 200 leading digital enterprises as of 2023. Their findings underscore AI's pivotal role in accelerating energy use, with data centers—critical for AI operations—consuming electricity at a pace four times faster than the global average increase.
The sector’s electricity usage, tallying 581 terawatt-hours, now represents over two percent of worldwide consumption. The report highlights that just ten technology giants, including major Chinese telecoms and global cloud and hardware providers, account for half this figure. Notably, the top ten firms collectively consume more power annually than countries like Spain or Australia.
Despite prominent firms such as Amazon, Meta, Alphabet, and Microsoft making strides in sourcing clean energy, emissions continue climbing. In 2023 alone, operational greenhouse gases reported by these companies equated to nearly 300 million tonnes of CO2 equivalent—a footprint comparable to the combined yearly emissions of Argentina, Bolivia, and Chile. This rise stems chiefly from increased electricity needs driven by AI advancements and broader digital infrastructure.
While the growing awareness of environmental challenges has encouraged transparency, with more companies disclosing emissions data and setting net-zero targets, these commitments have yet to translate into a reversal of emissions growth. Approximately half of the surveyed companies have pledged to achieve net-zero emissions by mid-century or earlier, and a growing number issue dedicated climate reports and extend emissions accounting to include supply chain impacts.
Addressing this, the report urges digital companies to deepen data verification, enhance climate strategy ambition, and broaden collaboration across industries. It also spotlights investments in emerging clean energy sources, including interest in nuclear microreactors that, while carbon-free, introduce concerns about waste management.
The ITU emphasizes that the tech sector’s role is crucial for enabling a sustainable digital future, especially as global climate negotiations approach. However, the evidence signals that only through sustained, coordinated action focused on rigorous science-based targets and transparent reporting can the increasing environmental burden of AI be effectively managed.
Image: DIW-Aigen
Read next: From Dinner to Downloads: How Apple’s App Store Became a $1.3 Trillion Giant
