Key facts
- AI's environmental impact is a growing concern, with projections of massive water, energy, and land resource consumption.
- A UN University study found AI will consume water equivalent to 1.3 billion people in sub-Saharan Africa by the end of the decade.
- The study also projected AI's energy consumption to triple that of Pakistan, Bangladesh, and Nigeria combined.
- The EU's new rules require data centers to report energy and water usage and their relation to local water stress.
- California's new laws require data center proposals to estimate water usage, detail energy efficiency, and include drought contingency plans.
- The US and China control over 90% of AI computing capacity, while other nations may bear environmental costs without economic benefit.
Governments in California and the European Union are implementing new policies to address the significant environmental toll of artificial intelligence, particularly its water and energy consumption. These initiatives aim to increase transparency and potentially limit the resource use of hyperscalers as AI technology rapidly expands.
A recent study by the United Nations University highlighted the escalating demand for water, energy, and land driven by AI. The report projected that by the end of the decade, AI could consume as much water as 1.3 billion people in sub-Saharan Africa and triple the energy consumption of Pakistan, Bangladesh, and Nigeria combined, affecting a population of 650 million. The study also estimated AI's land footprint could exceed 14,500 square kilometers.
Professor Kaveh Madani, who led the UN University study, emphasized that the findings are not an argument against AI but a call for its responsible use. He stressed the need to ensure AI development operates within planetary limits and benefits the communities involved in providing critical minerals and hosting AI infrastructure.
In response, the European Commission has introduced new regulations requiring data centers within the EU to disclose their energy and water usage, as well as report on the relationship between their water consumption and local water stress. While these rules do not currently set limits, they are seen as a foundational step toward future legislation, addressing the sector's opacity.
Concurrently, California Governor Gavin Newsom signed a package of seven bills imposing similar requirements on the state's data centers. These laws mandate that proposed data center plans estimate water usage, detail energy efficiency, and outline drought contingency measures. They also require data centers to fund local grid upgrades. Newsom stated these measures ensure that the benefits of data centers do not come at the expense of Californians.
The UN also warns of a growing digital and environmental divide, noting that while the US and China dominate AI computing capacity, other nations may face the environmental consequences without reaping the economic benefits.