You are currently viewing The Growing Environmental Impact of AI Chip Manufacturing
Representation image: This image is an artistic interpretation related to the article theme.

The Growing Environmental Impact of AI Chip Manufacturing

In the year 2023, the world witnessed the emergence of AI as a revolutionary force, transforming the way we live and work. As AI technology advanced, its energy consumption skyrocketed, and by the end of that year, the energy consumption for AI chip making had reached an astonishing 218 GWh globally. By 2024, this figure had jumped up to a staggering 984 GWh. More recently, in 2025, it was reported that the energy consumption for AI chip making had reached 1,737 GWh, and by 2030, Greenpeace is warning that this figure will hit an unprecedented 37,238 GWh, surpassing the energy consumption of Ireland. This alarming increase in energy consumption is attributed to the growing demand for AI chips, particularly in Asia. Asian governments are increasingly relying on energy-intensive methods of renewable energy, such as gas and nuclear power, to support the growing demand for AI chips. For instance, the South Korean government has approved a massive liquefied natural gas (LNG) project worth 1.05 GW, which will be used to support SK hynix and Samsung, two of the world’s leading chipmakers. Similarly, the Taiwanese government is pushing for the development of LNG and nuclear energy sources to support the growing demand for AI chips in the region.

Greenpeace’s Warning and Demands

Greenpeace, a leading environmental non-governmental organization, has issued a stark warning about the growing environmental impact of AI chip manufacturing. According to Katrin Wu, Greenpeace East Asia Supply Chain Project Lead, the increasing energy consumption of AI chip manufacturing is being used by Asian governments to justify the development of new fossil fuel capacity, such as gas and nuclear power. Greenpeace is urging tech companies, particularly those involved in AI chip manufacturing, to take immediate action to reduce their environmental impact. The organization recommends that these companies invest in renewable energy generation facilities and sign long-term power purchase agreements (PPAs) to ensure a stable and sustainable energy supply. By doing so, they can reduce their reliance on fossil fuels and mitigate the climate change caused by AI chip manufacturing.

Key Demands of Greenpeace

  • Invest in renewable energy generation facilities
  • Sign long-term power purchase agreements (PPAs)
  • Reduce energy consumption by 100% through the use of renewable energy

Examples of Companies That Can Make a Difference

* Nvidia: As one of the leading fabless hardware companies in the world, Nvidia has the opportunity to make a significant impact on reducing the environmental impact of AI chip manufacturing. By investing in renewable energy generation facilities and signing long-term power purchase agreements, Nvidia can reduce its reliance on fossil fuels and mitigate the climate change caused by its supply chain. * AMD: AMD is another fabless hardware company that can make a significant impact on reducing the environmental impact of AI chip manufacturing. By working with manufacturers to increase renewable energy use, AMD can reduce its energy consumption and mitigate the climate change caused by its supply chain.

Conclusion

In conclusion, the growing environmental impact of AI chip manufacturing is a pressing issue that requires immediate attention. Greenpeace’s warning and demands are a call to action for tech companies involved in AI chip manufacturing to take responsibility for their environmental impact. By investing in renewable energy generation facilities and signing long-term power purchase agreements, these companies can reduce their reliance on fossil fuels and mitigate the climate change caused by AI chip manufacturing. It is crucial for companies like Nvidia and AMD to take action and work with manufacturers to increase renewable energy use. The future of our planet depends on it.

Renewable Energy Sources Examples
Wind Energy Offshore wind farms, onshore wind turbines
Solar Energy Solar panels, photovoltaic systems
Hydro Energy Hydroelectric power plants, tidal power turbines

“The growing demand for AI chips is being used by Asian governments to justify the development of new fossil fuel capacity.

Leave a Reply