Google's carbon emissions have seen a significant increase of almost 50% over the past five years, primarily driven by the rising energy consumption of data centers and emissions from its supply chain as a result of the power requirements of artificial intelligence systems, according to the company's latest annual environmental report. In 2023, Google reported emissions of 14. 3 million metric tons of carbon equivalent, representing a 48% surge from its 2019 baseline and a 13% rise from the previous year. These figures raise concerns about the company's ability to achieve its goal of reaching "net zero" emissions by 2030. The rise in emissions primarily stems from a 37% year-on-year increase in energy-related emissions in 2023, mainly attributed to the electricity consumption of data centers. Consequently, these energy-related emissions accounted for 25% of Google's total greenhouse gas emissions. The impact of artificial intelligence on electricity demand has been extensively acknowledged, with forecasts suggesting that electricity demand could grow by up to 20% by 2030.

In the United States alone, AI data centers are projected to contribute to an additional 323 terawatt hours of electricity demand, as reported by CNBC. Analysts at Bernstein recently predicted that AI would double the rate of electricity demand growth in the U. S. , potentially surpassing the current supply within the next two years. While renewable energy sources are expected to play a crucial role in meeting the energy demands of AI, Wells Fargo analyst Roger Read expressed concerns about the challenges associated with their early implementation. Factors such as the time required for the construction of power lines to transport resources to data centers pose difficulties in this regard, according to Read's comments to CNBC. Google is not the only major tech company acknowledging the rising emissions attributed to the demand for artificial intelligence. Microsoft reported a nearly one-third increase in emissions since 2020, primarily resulting from the construction of data centers. ETFs: (XLU), (AIQ), (BOTZ), (DTEC), (GINN), (IRBO), (ROBT), (TECB), (XT), (THNQ), (CHAT)