06/05/2026
Exploding demand for data centers, the pillars of the digital economy, is driven by the rise of artificial general intelligence (AGI). Given the unstoppable expansion, we need to carefully analyze and understand the environmental impact they imply.
As the International Energy Agency (IEA) points out, there’s no AI without energy. Its very existence depends directly on an abundant, reliable, and sustainable electricity supply. Cloud services are already a critical infrastructure element for society, almost comparable to an electricity network or modern roadways. In recent years, demand for digital services has grown exponentially, but the emergence of AI has accelerated this trend even more. Training advanced models and running AI systems requires a computing capacity far superior to that of traditional applications.
According to the report Decarbonizing data: strategic considerations for data center sustainability in the AI era, published by Seagate, energy demand for data centers could triple by 2030. This same analysis points out that data centers must overcome three major challenges:
- Scaling their computing and storage power.
- Reducing total costs.
- Meeting sustainability objectives.
More than 90% of companies already need more storage capacity. As a consequence, the environmental impact of data centers is also growing. (Data centers look set to account for 8% of global emissions by 2030.) According to the IEA, they currently represent approximately 1.5% of total energy consumption, having grown by 12% annually over the last five years.
The forecasts point to an even greater increase ahead: the electricity consumption of data centers could exceed 945 TWh by 2030, a figure slightly higher than the current consumption of countries such as Japan. This growth is mainly driven by AI, which requires an ever-increasing processing capacity.
In countries like Ireland, which has established itself as one of the main European digital infrastructure hubs and a strategic destination for investment in data centers, they already consume more than 20% of national electricity. And globally, their consumption could exceed 1,000 TWh in the next decade, a figure comparable to whole electricity consumption of entire countries. Additionally, a single large-scale data center can consume as much energy as a medium-sized city. This is due to two main factors: the computation power of the servers installed and the constant need to cool them.
The environmental impact beyond electricity
The world in general, and the European Union in particular, have set ambitious energy efficiency targets. Among them is the stated ambition to reduce final energy consumption by at least 11.7% by 2030, compared to 2020 indicators. However, the growing number of data centers is causing tensions in local energy infrastructures, forcing the reinforcement of networks, accelerating investments, and rethinking energy planning.
In fact, the IEA has already warned that up to 20% of planned data center projects could be delayed due to the saturation of power grids and long connection times. In many advanced economies, the construction of new energy infrastructure can take years, which adds a layer of complexity to the sector’s growth of the sector.
According to an article published by the Directorate-General for Energy of the European Commission, the challenge posed by data centers isn’t limited to their growing energy demand – they also have a considerable environmental and climate impact. And this isn’t limited just to energy consumption: it also has a significant carbon footprint. Another relevant factor is the large amount of water they need for cooling. Many data centers use cooling systems that require large volumes of water, especially in warm climates. In some regions, this can generate tension in terms of pressuring the local supply, especially in areas suffering water scarcity.
Leveraging tech to reduce the impact
Despite the challenges, there are also opportunities to mitigate this impact. In fact, the same technology that causes the problem could be used in devising a solution.
According to a report prepared by researchers from the Polytechnic University of Madrid together with the University of Melbourne, it’s possible to reduce energy consumption and carbon footprint without compromising service quality, by using AI-based solutions and integrated management. These technologies allow for optimizing resource use, anticipating peaks in demand, and improving the efficiency of cooling systems.
Moreover, the development of the energy sector will be key. According to the International Energy Agency, approximately half of the growth in electricity demand from data centers will be covered by renewable energies, although it’ll also be necessary to resort to manageable sources such as natural gas and, in some cases, nuclear energy.
The most promising technological solutions that are emerging include liquid cooling systems, locating data centers in cold climates, and reusing residual heat.
Regulations and industry conflict
Against this backdrop, regulation from Europe is intensifying, which in many cases already requires reporting indicators such as energy consumption, water use, and operational efficiency. And this increased intervention is generating tension. Operators demand quick access to energy, stable regulatory frameworks, and competitive conditions in a global market. In parallel, administrations must guarantee network stability, manage limited resources, and meet climate-related goals.
Balancing these competing demands is complex, and amid the debate, data centers are ceasing to be purely private infrastructure and becoming a strategic element of lobal geopolitics, increasingly linked to global economic power.
