How AI's Growing Compute Demands Are Straining Global Natural Resources
AI systems rely heavily on physical resources including electricity, water, and rare minerals to power the specialized hardware that runs training and inference workloads. Data centres hosting AI infrastructure already consume a significant share of global electricity, with projections suggesting consumption could exceed 1,000 terawatt-hours by 2026. Cooling systems for these facilities also draw large volumes of freshwater, with metrics like Power Usage Effectiveness and Water Usage Effectiveness used to track efficiency. AI chip manufacturing adds further pressure, as semiconductor fabrication plants require ultrapure water, specialty chemicals, and substantial energy. The cumulative resource footprint of AI — spanning mining, manufacturing, and continuous operation — is now large enough to factor into national and global resource planning.
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