AI Automation
11 min read

What Are the Environmental Impacts of AI?

Published on
July 24, 2025
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Your team spent three days stuck in CRM purgatory trying to connect one form field to Zapier while someone somewhere asked ChatGPT to rewrite a caption for the fifth time—because the first four felt too… robotic.

Welcome to modern business: half duct tape, half magic, mostly chaos. But now we’ve got AI to save us, right?

Maybe. But here’s the thing no one brought up during your last team meeting:

All those smart automations churning in the background? They’re quietly chewing through energy like it’s bottomless brunch.

Which brings us to the real question:

What Are the Environmental Impacts of AI?

Short answer: They’re bigger than you think. And they’re growing faster than your last email list import.

For all its wizardry—helping you spin up emails, score leads, and auto-schedule posts—AI has a dirty little secret: it runs on massive computation, and computation runs on electricity. And servers. And water. And rare minerals pulled from half the planet.

You don’t need to become Greta Thunberg about your marketing ops. But if you're even thinking about baking AI more deeply into your business (and you should), it’s worth understanding what that means for your carbon budget—not just your P&L.

The Power Behind the Prompt

The same AI model that’ll write your blog post or sort your leads in 6 seconds? It’s sitting in a warehouse-sized data center halfway across the world, gulping down electricity like a college kid post-finals.

  • AI’s computing demands are doubling every 100 days. At this pace, we’re talking a million-fold increase in just five years.
  • By the end of 2025, AI will eat up nearly half of all global data center energy. That’s about 23GW of power—twice what the Netherlands uses.
  • By 2026, just the data centers handling AI will draw around 90 terawatt-hours per year. For comparison? That’s about one-seventh of total global data center usage. All just to keep ChatGPT online and your AI dashboards ticking.

Quick heads-up: Only half of that energy is predicted to come from renewable sources. So yes, coal-powered content strategy is officially a thing.

The Real Cost of One Query

Let’s say you ask your AI assistant to generate a sales email, outline a webinar, and punch up a social post.

No big deal, right? But each of those queries adds up.

One AI interaction—just one prompt—emits about 4.32 grams of CO₂e.

That might sound small, but stack that across millions of users, doing dozens of tasks per day, and it starts to resemble a digital tailpipe—with fumes included.

Worse? Some of the biggest companies in AI are, uh… let’s say very creative with how they report their emissions. Some estimates suggest actual emissions are 7.6x worse than reported.

That’s like saying “we only had two beers” when the bartender remembers pouring you eight.

Water, Waste, and Rare Rocks (Yes, Really)

Did you know data centers also consume a ton of water? Not just metaphorically. Specifically for cooling servers during those nonstop compute marathons.

  • Water stress is already a problem in places like Phoenix and parts of Central Europe—and cramming in more AI servers isn’t helping.

Then there’s the hardware turnover. With AI models getting bigger and training cycles accelerating, data centers regularly toss out servers—and what’s that mean?

  • Mountains of electronic waste. Most of it hard to recycle. A lot of it toxic when it’s dumped in the wrong places.
  • Oh, and let’s not forget the rare earth minerals—cobalt, lithium, neodymium—that get mined (usually with questionable labor practices) so your AI engine can run marginally faster.

Combine all that and you’ve got a “smart” system built on some very resource-heavy foundations.

“But Wait… Isn’t AI Supposed to Help the Planet?”

Yes. That’s part of the picture too. And here’s where nuance matters.

AI can support sustainability goals—like monitoring deforestation, tracking emissions, or predicting wildfires. Smart modeling also helps logistics companies optimize fuel use and improve supply chains.

But right now, only about 12% of execs using AI actively measure its environmental impact. That’s a huge gap.

So while AI has potential to help us fight climate change, it’s also very much part of the problem—unless we learn how to use it better.

What Teams Like Yours Can Actually Do About It

You don’t have to ban prompts or unplug your workflows. But you can get intentional.

1. Choose Energy-Efficient AI Models

Not all AI tools are created equal. Some models are open-source, lightweight, or engineered to run locally (i.e. no data center required for every little task). Look for tools that emphasize lower power usage—and avoid generic platforms when you can’t see where the compute happens.

2. Reduce Redundant Queries

Training your team to prompt better can dramatically cut usage. Don’t ask the same AI to write a blog post 19 times. Get clear about what you want—and train your squad to iterate inside the output, not just start from scratch.

3. Consolidate Workflows

If your tools are all running in silos, you’re wasting compute cycles. Look for automation stacks that integrate well (kind of our specialty, by the way) so you reduce double-processing across platforms.

4. Push for Transparency from Providers

If you’re paying for hosting, CRM AI features, or enhanced analytics, ask your vendors where their compute happens. Look for providers investing in renewable energy, hybrid cooling systems, and carbon-neutral targets.

5. Create a Simple AI Usage Policy

Nothing fancy. Just some guidelines for your team that promote efficient, responsible AI usage—and open the door for measuring emissions impact down the line.

Why This Matters (Yes, Even for Scrappy Teams)

You might be thinking: “Cool, but we’re a five-person SaaS company, not Microsoft.”

Exactly.

Small and mid-size teams move faster, make decisions across departments, and control their own tech stacks. That gives you a huge edge in designing AI workflows that aren’t just smart, but sustainable.

Soon, your customers, regulators, and investors will expect more than productivity. They’ll want proof that your digital tools aren’t torching more climate points than they save.

The credibility edge goes to the early adopters who get this right.

So, Where the Hell Do You Start?

Start with one process. Lead scoring. Sales follow-ups. Content batching. Pick something your team already relies on AI to help with—and ask, “Could we streamline this with fewer back-and-forth prompts? With tighter integrations? With clearer expectations for how and when to use AI?”

If you’re not sure how to answer that—or just want a grown-up to help you map it—we’ve got your back.

Book a free Workflow Optimization Session and we’ll dig into how your current stack is working (or not), where AI fits, and how you can make it more sustainable—without unplugging your business.

Don’t kill the prompt. Just make it work smarter—for your business and the planet.

Sources

River Braun
Timebender-in-Chief

River Braun, founder of Timebender, is an AI consultant and systems strategist with over a decade of experience helping service-based businesses streamline operations, automate marketing, and scale sustainably. With a background in business law and digital marketing, River blends strategic insight with practical tools—empowering small teams and solopreneurs to reclaim their time and grow without burnout.

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