A report from the University of Cambridge is sounding the alarm: if artificial intelligence (AI) continues to grow without oversight, it could seriously derail global efforts to reach net-zero emissions.
By 2040, data centers powering AI could consume up to 8 % of the world’s electricity—a staggering 25 times more than today. The report urges governments to act now with stricter regulations, clearer energy reporting, and policies that keep AI innovation aligned with climate priorities.
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A Growing Climate Concern
As AI technologies scale, so does their energy appetite. According to Cambridge’s Minderoo Centre for Technology and Democracy, data centers could account for 8 % of global emissions by 2040, up from just 1.5 % today. Major tech firms like Google, Microsoft, and Amazon have already seen their emissions jump by 30–48 % in recent years, despite public commitments to sustainability.
This puts governments—especially those aiming to lead in AI innovation—in a tight spot. For countries like the UK, supporting AI development while keeping net-zero promises may not be possible without major policy shifts. The Cambridge team calls for global standards on energy use reporting, stronger efficiency requirements for data centers, and more independent oversight to ensure AI doesn’t outpace clean energy infrastructure.
The Strain on Power Grids
Training and running AI models requires immense computing power, which translates to a growing electricity burden. In the US, China, and Europe, data centers already account for 2–4 % of national electricity use. In some tech-heavy cities, such as Dublin, that number reaches 20 %. If current trends continue, the tech sector’s global energy use could increase 25-fold by 2040, with data centers emitting more carbon than the entire aviation industry does today.
Company disclosures reflect this trajectory: from 2019 to 2023, Google’s emissions rose 48 %. Microsoft’s went up 30 % (2020–2023), and Amazon saw a 40 % increase between 2019 and 2021. Independent researchers believe the real numbers may be even higher, as many companies rely on renewable energy credits and carbon offsets instead of making direct reductions. Some, like Microsoft, are even turning to nuclear energy, reviving decommissioned plants, to keep up with AI demand. But without regulation, growing electricity use could strain power grids, forcing tough choices between residential needs and digital infrastructure.
The Illusion of “Green AI”
Many tech firms promote AI as part of the climate solution—optimizing energy systems, modeling emissions reductions, or aiding in environmental research. But the Cambridge report cautions that these gains may be overshadowed by AI’s own environmental impact.
Much of that impact remains hidden. Cooling AI data centers often requires vast amounts of water, and the electricity behind AI models comes from grids that still rely heavily on fossil fuels. Yet these costs are rarely made public.
In the UK, the government’s AI Energy Council is largely made up of industry representatives, with limited involvement from climate scientists or civil society, raising serious concerns about accountability. The report calls for immediate action, including linking new data center permits to renewable energy use, requiring transparent reporting of AI-related energy consumption, and incorporating AI’s environmental footprint into national climate strategies. It also recommends that Ofgem, the UK’s energy regulator, enforce stricter efficiency standards for data centers, and that public funding be directed toward developing low-carbon AI technologies.
A Choice Ahead
The message is clear. If left unchecked, AI’s rapid growth could lock in decades of additional carbon emissions and strain clean energy systems. Data centers risk consuming a disproportionate share of renewable power, leaving other sectors—and communities—behind.
Preventing that outcome will require governments to act with urgency. That means setting clear policies, enforcing greater transparency, and ensuring that innovation moves in step with climate goals. Without that balance, the cost of progress could be a future the planet can’t sustain.
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