AI climate benefits risk being outweighed by data centre emissions and water use, GlobalData says

A new GlobalData report warns that AI's ability to help cut emissions across energy, agriculture, and buildings could be undone by the environmental cost of running the technology itself. The report, Artificial Intelligence for Climate Mitigation, says predictive AI can support renewable grid management, sustainable farming, and building efficiency, but generative AI and large language models produce significantly higher emissions and water use, with little evidence they help the climate. The report urges companies to measure whether each AI deployment delivers real, net emissions reductions and to avoid relying on generative AI for sustainability strategies. It suggests safeguards like smaller models, carbon-aware computing, edge infrastructure, and better cooling to limit the footprint. The takeaway is that AI is a tool, not a climate fix, and its benefits depend on where and how it is used.