Environment
Jun 23, 2026
The Hidden Cost of AI: Data Centres' Environmental Impact
A growing body of evidence suggests that AI hyperscalers are warming the ground around them, with l…
The Rise of AI Data Centres and Their Environmental Impact
Tech giants are racing to build the infrastructure that powers artificial intelligence, but a growing body of evidence suggests that AI hyperscalers – large-scale cloud service providers like Google, Amazon and Microsoft – are warming the ground around them as well.
How Much Energy Do AI Data Centres Use?
AI data centres use powerful chips that perform thousands of calculations in parallel and running large models continuously makes them much more energy hungry than typical servers used to browse the web. According to the International Energy Agency (IEA), data centres consumed about 415 terawatt hours (TWh) of electricity in 2024, about 1.5 percent of global supply, growing at about 15 percent a year over the last five years.
The Data Heat Island Effect
A study by Cambridge-led researchers found that land surface temperatures around AI data centres rise by an average of 2 degrees Celsius (3.6 degrees Fahrenheit), with some areas recording increases as high as 9C (16.2F). The phenomenon mirrors the urban heat island effect, where concentrated human activity causes cities to run warmer than surrounding rural areas.
Data Centre Building Boom
The global landscape for AI data centre construction is currently experiencing an unprecedented acceleration, with more than 11,600 data centres active worldwide as of June 2026. Most data centres are located in the United States, which has more than 4,300 according to Data Center Map, a crowdsourced database that tracks data centre locations worldwide.
The Impact of AI Data Centres on Local Communities
The resulting temperature increases could place additional pressure on nearby communities by affecting health, energy demand and overall wellbeing. Using NASA satellite data, researchers measured land surface temperature globally from 2004 to 2024 and cross-referenced it with more than 11,000 AI data centre locations worldwide.
$5.3 Trillion of Capital Expenditure
Global investment bank, Goldman Sachs, says it expects a combined $5.3 trillion of capital expenditure between 2025 to 2030 for the four largest hyperscalers: Microsoft, Amazon, Alphabet and Meta. Major upcoming projects include:
Meta’s $27bn Hyperion campus in Louisiana.
Microsoft’s multiphase $20bn data centre campus expansion in Wisconsin.
Amazon’s $25bn investment in data centre infrastructure in Mississippi.
Google’s Project Spade, a $15bn hyperscale data centre campus located in New Florence, Missouri.
#AI
#Data Centres
#Environmental Impact
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