Headline Roundup • July 17th, 2025
How is AI Impacting the Environment?
Summary from the AllSides News Team
Artificial intelligence (AI) has changed the way businesses operate and become a part of daily life for millions of people globally. What are the potential impacts of AI on the environment?
Water Usage: Data centers powering AI use an estimated 200 million gallons of water each year to cool the machinery, according to The Epoch Times (Lean Right bias). The high water use is of particular concern in areas that already struggle with water scarcity, such as Nevada, Arizona, Texas, Utah, California, and Colorado—states where developers are building 437 new data centers. However, Epoch Times highlights that it’s “not just the volume of water that’s causing concern,” but the potential for the “forever chemicals” used in these cooling systems to leech into groundwater and harm drinking water resources.
Energy Use and Emissions: Amazon, Microsoft, Meta, and Alphabet all increased their indirect carbon emissions by an average of 150% from 2020 to 2023 due to AI’s high energy demands. Reuters (Center) cited a United Nations report that found electricity use from AI data centers is increasing four times faster than other sectors. According to Fox Business (Lean Right), a White House report showed energy prices could increase anywhere from 9% to 58% because of the expanded use of AI.
Do Benefits Outweigh Costs? Scientific American (Lean Left) argued that, if leveraged correctly, AI could reduce climate pollution by up to 5.4 billion metric tons each year over the next decade—enough to outweigh the expected energy consumption and emissions from the AI itself. The article suggests using AI to increase efficiency in power grids, transportation, and food production, three “key impact areas.” However, these ideas require governments “to play an active role in guiding how AI is applied and governed, to make sure the downsides are managed effectively and the full potential of AI for climate action is realized.”
Written by the AllSides staff (of humans). Learn more. Support our mission. Suggest an improvement to this summary.
Featured Coverage of this Story

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While artificial intelligence (AI) reshapes the way America does business, the number of data centers being built to meet its expanding computational demands has kicked off a construction boom.
Millions of gallons of water are needed for cooling these new data centers, a demand that has risen in lockstep with the expansion of AI support facilities.
The amount of water needed to power the data center building bonanza has triggered concerns about water supplies and groundwater safety in arid and water-stressed cities, where many of the complexes are being built.
...Indirect carbon emissions from the operations of four of the leading AI-focused tech companies rose on average by 150% from 2020-2023, due to the demands of power-hungry data centres, a United Nations report, opens new tab said on Thursday.
The use of artificial intelligence by Amazon (AMZN.O), opens new tab, Microsoft (MSFT.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Meta (META.O), opens new tab drove up their global indirect emissions because of the vast amounts of energy required to power data centres, the report by the International Telecommunication Union (ITU), the U.N. agency for digital technologies,...

John M Lund Photography Inc/Getty Images
Artificial intelligence could cut global climate pollution by up to 5.4 billion metric tons a year over the next decade if it’s harnessed in ways that would improve transportation, energy and food production.
Those reductions would outweigh even the expected increase in global energy consumption and emissions that would be created by running power-hungry data centers associated with AI, according to research by the Grantham Research Institute that was published in the journal npj Climate Action.
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