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Code Green or Code Red? The Untold Climate Cost of Artificial Intelligence

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As the world races to harness artificial intelligence, few are pausing to ask a critical question: What is AI doing to the planet?

AI is being heralded as a game-changer in the global fight against climate change. AI is already assisting scientists in modeling rising temperatures and extreme weather phenomena, enabling decision-making bodies to predict and prepare for unexpected weather, while allowing energy systems to become smarter and more efficient. According to the World Economic Forum, AI has the potential to contribute up to 5.1 trillion dollars annually to the global economy, under the condition that it is deployed sustainably during the climate transition (WEF, 2025).

Beneath the sleek interfaces and climate dashboards lies a growing environmental cost. The widespread use of generative AI, in particular, is creating a new carbon frontier, one that we’re just beginning to untangle and understand.

Training large-scale AI models is energy-intensive, according to a 2024 MIT report. Training a single GPT-3 sized model can consume enough electricity to power almost 120 U.S. homes for a year, which totals up to 1.300 megawatt-hours of electricity. AI systems, once deployed, are not static, since they continue to consume energy each time a user interacts with them. For example, an AI-generated image may require as much energy as watching a short video on an online platform, while large language model queries require almost 10 times more energy than a typical Google search (MIT, 2024).

As AI becomes embedded into everything from online search to logistics and social media, this energy use is multiplying at scale. The International Energy Agency (IEA) warns that by 2026, data center electricity consumption could double globally, driven mainly by the rise of AI and cryptocurrency. Taking into account the recent developments regarding the Digital Euro, the discussion instantly receives more value. Without rapid decarbonization of energy grids, this could significantly increase global emissions, undermining progress on climate goals (IEA,2024).

Sotiris Anastasopoulos/ With data from the IEA’s official website.

The climate irony is real: AI is both the solution and the multiplier to Earth’s climate challenges.

Still, when used responsibly, AI remains a powerful ally. The UNFCCC’s 2023 “AI for Climate Action” roadmap outlines dozens of promising, climate-friendly applications. AI can detect deforestation from satellite imagery, track methane leaks, help decarbonize supply chains, and forecast the spread of wildfires. In agriculture, AI systems can optimize irrigation and fertilizer use, helping reduce emissions and protect soil. In the energy sector, AI enables real-time management of grids, integrating variable sources like solar and wind while improving reliability. But to unlock this potential, the conversation around AI must evolve, from excitement about its capabilities to accountability for its impact.

This starts with transparency. Today, few AI developers publicly report the energy or emissions cost of training and running their models. That needs to change. The IEA calls for AI models to be accompanied by “energy use disclosures” and impact assessments. Governments and regulators should enforce such standards, similarly to industrial emissions or vehicle efficiency (UNFCC, 2023).

Second, green infrastructure must become the default. Data centers must be powered by renewable energy, not fossil fuels. AI models must be optimized for efficiency, not just performance. Instead of racing toward ever-larger models, we should ask what the climate cost of model inflation is and if it’s worth it (UNFCC, 2023).

Third, we need to question the uses of AI itself. Not every application is essential. Does society actually benefit from energy-intensive image generation tools for trivial entertainment or advertising? While AI can accelerate climate solutions, it can also accelerate consumption, misinformation, and surveillance. A climate-conscious AI agenda must weigh trade-offs, not just celebrate innovation (UNFCC,2023).

Finally, equity matters. As the UNFCC report emphasizes, the AI infrastructure powering the climate transition is heavily concentrated in the Global North. Meanwhile, the Global South, home to many of the world’s most climate-vulnerable populations, lacks access to these tools, data, and services. An inclusive AI-climate agenda must invest in capacity-building, data access,  and technological advancements to ensure no region is left behind (UNFCC, 2023).

Artificial intelligence is not green or dirty by its nature. Like all tools, its impact depends on how and why we use it. We are still early in the AI revolution to shape its trajectory, but not for long.

The stakes are planetary. If deployed wisely, AI could help the transition to a net-zero future. If mismanaged, it risks becoming just another accelerant of a warming world.

Technology alone will not solve the climate crisis. But climate solutions without responsible technology are bound to fail.

*Sotiris Anastasopoulos is a student researcher at the Institute of European Integration and Policy of the UoA. He is an active member of YCDF and AEIA and currently serves as a European Climate Pact Ambassador. 

This op-ed is part of To BHMA International Edition’s NextGen Corner, a platform for fresh voices on the defining issues of our time



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CFOs Triple Down on Gen AI ROI, Fueling Chip-to-Server Surge

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Multiple industries including cloud, chips, data storage, semiconductor manufacturing, data centers and servers are seeing revenue gains from artificial intelligence (AI), cementing its role as an economic driver.

The main catalyst is increasing enterprise adoption of AI. A 2025 PYMNTS Intelligence report shows that 9 in 10 chief financial officers (CFOs) see “very positive ROI” from generative AI. That’s up substantially from 26.7% in March 2024.

“With gen AI yielding such strong results, CFOs are utilizing the technology in more areas of their businesses,” the report said. These include using the technology for high-, medium- and low-impact tasks.

Cloud providers are some of the clearest beneficiaries of this demand. According to Statista, cloud infrastructure service revenues are expected to exceed $400 billion for the first time. Cloud market has re-accelerated in recent quarters, mainly due to the AI boom, the research firm said.

Consider the following:

  • CoreWeave, as a purely AI cloud provider, posted Q2 revenue that more than tripled to a record $1.21 billion from $395 million a year earlier. It’s a reflection of accelerating demand for its GPU‑powered AI cloud services, though soaring operating expenses led to a net loss.
  • Microsoft recorded a 39% year‑over‑year gain in Azure and other cloud services revenue in its fiscal fourth quarter. Its Intelligent Cloud segment posted $29.9 billion in revenue, up 26%. For the year, Azure surpassed $75 billion in revenue, up 34% largely due to AI workloads.
  • Google Cloud saw Q2 revenue rise by 32% to $13.6 billion compared to the prior year. Operating income for cloud soared 133% to $2.8 billion. Alphabet CEO Sundar Pichai said the company raised its capex to $85 billion in 2025 due to “strong and growing demand” for cloud services.
  • AWS posted $30.9 billion in cloud revenue in Q2, up 17% from a year ago. Operating income rose 10% to $10.2 billion. Its backlog grew to $195 billion, up 25% year‑over‑year, prompting CEO Andy Jassy to caution that capacity constraints may limit near‑term growth.

Semiconductor companies supplying GPUs and networking chips to hyperscalers are seeing explosive gains. Nvidia, the most valuable company in the world and whose chips command the lion’s share in powering AI workloads, reported record data center revenue of $39.1 billion in its fiscal Q1, up 73% from a year ago.

AMD’s Q2 revenue rose by 32% year over year to $7.7 billion, with its data center segment taking up $3.2 billion of the total, up 14% from a year ago due to “strong demand” for its EPYC processors and growing interest in AI platforms. Net income rose by 229% year over year.

Read more: The CAIO Report: Since March, Triple the CFOs Report Very Positive ROI from GenAI

‘Unprecedented’ AI Demand Boosts Related Industries

In data storage, Snowflake, the cloud data warehouse platform, crossed the $1 billion revenue quarterly mark in May for the first time due to the rising tide of artificial intelligence workloads. The company just earned an upgrade from BofA due to strong customer demand tied to AI investments.

Databricks, Snowflake’s rival, is also in high gear. The company said it is raising funds that would value it at $100 billion. It plans to use the funds to accelerate its AI strategy as well as for future AI acquisitions and deepen AI research. Databricks CEO Ali Ghodsi said there is “tremendous interest because of the momentum behind our AI products.”

In servers, Dell has emerged as a standout beneficiary of AI-fueled demand. Its Q1 fiscal 2026 Infrastructure Solutions Group — which includes servers and networking — posted record revenue of $6.3 billion. In the quarter, Dell generated $12.1 billion in AI orders, which surpassed all of fiscal 2025 combined. COO Jeff Clarke described the surge in demand as “unprecedented.”

In semiconductor manufacturing, Taiwan’s Foxconn said for the first time, revenue from servers and cloud infrastructure overtook smartphone assembly. Cloud and networking products now account for 41% of its total revenue in Q2, according to the Financial Times. Foxconn expects AI server revenue to increase by 170% year over year in Q3. CEO Kathy Yang cited “very strong demand” for AI servers for the robust gains.

Among data center operators, Digital Realty saw a 10% increase in revenue to $1.49 billion in Q2, outpacing its historical growth rate. The company raised its full year revenue guidance to $5.93 billion, up from $5.83 billion. Management cited AI-driven digital transformation and cloud growth as catalysts for top line growth.

Privately held Vantage Data Centers last week announced a $25 billion investment in West Texas to build a “mega-scale” 1.4GW data center campus in Shackelford County. Called “Frontier,” the campus will boast 10 data centers totaling 3.7 million square feet. The company called customer demand for AI data centers “unprecedented.”

Read more:

Databricks Projects $1 Billion in Revenue From Data Warehouse Business

Amazon Eliminates Hundreds of Cloud Computing Jobs

Why Does Google Want Multi-Cloud Security Platform Wiz So Badly?



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South Korea to move decisively in adopting AI in defense operations | MLex

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By Choonsik Yoo ( September 1, 2025, 07:26 GMT | Insight) — South Korea’s defense ministry is shifting from research and preparation to actively adopting AI technologies, with a comprehensive defense AI policy paper planned by early 2026, a ministry official told MLex. The move reflects President Lee Jae Myung’s pledge to make use of AI across the country the main driver of economic recovery. Initial applications will focus on administration, manpower management and surveillance systems, while large-scale combat uses are expected to take longer due to technological challenges.

South Korea’s defense ministry plans to begin adopting artificial intelligence technology as broadly as possible, moving away from its previous strategy of focusing primarily on study and preparation, and acknowledging the sustained proliferation of AI across industries and countries….

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While the generative artificial intelligence (AI) craze is approaching its peak, promises that “AI w..

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Builder AI launches liquidation process in Delaware after controversy over sales overestimation, Nate founder’s federal indictment, GameOn false data, etc

[Picture = Gemini]

While the generative artificial intelligence (AI) craze is approaching its peak, promises that “AI will do everything on its own” are collapsing throughout Silicon Valley. The bankruptcy of Builder AI, which was revered as a unicorn, is a symbolic event.

According to the New York Times on the 31st (local time), Builder AI has launched a massive promotion with high growth in 2024, but a board investigation has confirmed overstatement of sales. After management changes and a liquidity crisis, the company entered liquidation proceedings in Delaware courts in the first half of 2025. As suspicions spread that “people took care of it from behind” over the reality of AI manager Natasha, who said he would automatically make the app, management explained, “AI was an auxiliary tool and did not replace people,” but failed to restore trust.

The incident shows how easily verification of the actual level of automation of technology and financial numbers can be pushed back while the label ‘AI’ draws the attention of investment and media.

Similar scenes were repeated on other stages. The shopping app “Nate” promoted that “Deep Learning replaces payment and checkout,” but allegations arose that the Philippine outsourcing staff handled the order manually. Eventually, the Southern New York Federal Prosecutor’s Office (SDNY) charged its founder with investor fraud in the spring of 2025.

San Francisco startup “Game On” put forward an AI sports chatbot, but was indicted on false financial data, fake audit reports, and allegations of inflated sales. What these events have in common is that they promoted “AI-washing,” that is, processes that are largely performed by humans or low automation maturity, as if they were “completely automatic.”

‘AI done by humans’ is not small in the field of large corporations. Amazon’s “Just Walk Out” was a concept that sensors and computer vision handled automatic payments, but reports continued that personnel identified and inspected transactions in actual operations. Amazon denied the controversy over the exaggeration, but adjusted its store strategy to focus on smart carts.

Presto Automation, which introduced a fast-food drive-through automatic response solution, was also found to have processed a significant percentage of orders at a certain time. Legal technology start-up advocated automating personal injury case documents, but when internal testimony was reported that many of the actual tasks depend on human inspection, the company emphasized that “the combination of AI and humans is essential for high quality.”

“The fall of Builder AI clearly shows what to believe and what to doubt in the current AI boom,” the New York Times said. “As it is said that AI is sold, but automation is not, the gap between the actual level of technology and market expectations is still large.”



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