Data centres, whose rapid expansion is being driven by the artificial intelligence boom, are producing significantly higher carbon emissions than previously thought, according to a new study released Tuesday.
The sprawling, power‑intensive facilities — housing servers and critical IT infrastructure — are multiplying worldwide as demand for AI applications surges.
This growth has sharply increased their greenhouse gas footprint. Allianz Trade, the trade credit insurance arm of global insurer Allianz, estimates that data centres emitted 286 million tonnes of carbon dioxide in 2025. That figure is 57 per cent higher than the International Energy Agency’s earlier estimates.
AI workloads already account for between 15 and 20 per cent of electricity consumed at data centres, and the share could rise to 40 per cent by 2030, the report warned. Patrick Hoffmann, senior climate economist at Allianz, said data centres are shifting from being a marginal factor to a structural driver of electricity demand across many regions.
Without major steps to decarbonise power grids, emissions from data centres could more than double by 2030, the study projected.
Without steps to decarbonise power grids, data centre emissions would more than double by 2030, leading to an estimated $154 billion in annual climate damages — up from $68 billion today, the report said.
The report also highlighted the strain on natural resources. By 2030, data centres could require between 1.3 and 1.8 trillion litres of water annually — roughly equivalent to Switzerland’s total yearly consumption.
Emissions vary sharply depending on the source of electricity. In India, power generation linked to data centres produces more than 600 grams of CO2 per kilowatt‑hour, compared with less than 30 grams in Norway or Sweden, where grids are largely decarbonised.
Nearly 70 percent of global data centre emissions are currently concentrated in the United States and China, the study noted, underscoring the environmental impact of the world’s two leading AI hubs.
