We break down Estia Ryan's article on the climate change and AI.
Estia Ryan, Principal and Head of Research at Eka Ventures, and Arthur Bessieres, Ventures Lead for France at Plug and Play Tech Center, recently wrote an article for the Eka Ventures Newsletter titled “Carbon cost of compute: AI's energy consumption.” It was a fascinating look at AI’s role in climate change, and we recommend you read it.
In this blog, we’ll break down Ryan’s top takeaways.
AI's productivity boosts vs. climate costs
BCG estimates that AI can reduce global greenhouse gas emissions by 5-10% by 2030 through optimisation and efficiency improvements. However, its energy consumption poses significant climate challenges. AI, data centres, and cryptocurrencies accounted for 2% of global energy in 2022, projected to rise to 8% by 2026.
The environmental cost of AI
Large machine-learning models could surpass Portugal’s total electricity usage by 2027. In 2022, the 2% of global energy used by data centres, cryptocurrencies, and AI was divided between computing (40%), cooling (40%), and other IT equipment (20%).
AI cooling demands substantial water resources, both on-site and off-site, for electricity generation and cooling towers. By 2027, AI could require 4.2 to 6.6 billion cubic meters of water annually, equivalent to the water withdrawal of several countries.
Reducing AI’s carbon footprint
Energy sources for data centres vary depending on location. Western Europe and Northern US data centres use almost 100% renewable energy, whereas ASEAN region centres have mixed energy sources.
Advances in cooling, quantum computing, model optimisation, and sustainable chip design aim to reduce AI's environmental impact.
Microsoft, Amazon, Google, and IBM are investing in renewable energy, cooling technologies, and AI-driven efficiency measures. Europe, the US, and China are implementing regulations to reduce data centres' carbon footprints and promote renewable energy use.
As we embrace AI to make our everyday lives easier, we must consider and mitigate its carbon cost to ensure our technological advancements align with global sustainability efforts.
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