The Hidden Cost of AI: Data Centres' Environmental Impact
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, followed by Europe, led by the United Kingdom with more than 540 facilities.
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. More than 340 million people living within 10km (6 miles) of a data centre could be affected by the temperature increases – an impact researchers described as having a “remarkable influence on communities and regional welfare”.