The rapid advancement of artificial intelligence (AI) in 2025 continues to transform industries, economies, and the environment. A significant consequence of this evolution is the substantial increase in energy and water consumption, primarily driven by data centers. The global demand for electricity to power these facilities is on a steep upward trajectory, with projections indicating a potential doubling by 2030, reaching approximately 945 terawatt-hours (TWh). AI-optimized data centers are expected to quadruple their electricity demand by the same year. In the United States, data centers are anticipated to account for a significant portion of the nation's electricity consumption, with some estimates suggesting they will represent up to 5% of the total by 2025, a figure that could more than double within five years. Texas, specifically, is facing strain, with warnings that energy demand from AI-driven data centers could outpace infrastructure capabilities, potentially leading to substantial shortfalls by 2035.
The environmental impact of AI extends beyond electricity usage to considerable water requirements for cooling. A single 100-megawatt data center can consume up to 2 million liters of water daily, comparable to the daily water usage of approximately 6,500 households. Globally, data centers are estimated to consume around 560 billion liters of water annually, with a concerning trend of new data centers being located in areas already experiencing water stress. Beyond these environmental concerns, AI's progress is also reshaping the labor market. A 2025 World Economic Forum study predicted that while AI could displace millions of jobs, it would also create new roles, though the net impact remains under discussion. Experts suggest that AI's increasing capability to replace human roles across various levels necessitates proactive strategies for managing societal shifts. Addressing these multifaceted challenges requires a collaborative approach involving governments, corporations, and communities to implement sustainable practices, invest in energy-efficient technologies, promote transparency in resource usage, and ensure equitable distribution of AI's benefits.