A new study from Allianz Trade estimates that data centers emitted 286 million tonnes of CO2 in 2025, which is 57 percent higher than the International Energy Agency's previous estimate. The report says AI workloads already account for 15 to 20 percent of data center electricity use and could reach 40 percent by 2030. Without grid decarbonization, emissions could more than double by 2030, causing an estimated $154 billion in annual climate damages. The study highlights how the same computing load produces vastly different emissions depending on the grid. In India, data center electricity emits over 600 grams of CO2 per kWh, while in Norway or Sweden it is under 30 grams. Nearly 70 percent of global data center emissions are concentrated in the US and China. Water use is also a concern, with demand projected to reach 1.3 to 1.8 trillion liters by 2030, comparable to Switzerland's annual consumption.
