Unveiling AI’s Hidden Environmental Impact: Beyond the Cloud – Insights from Environmental Defence

Artificial Intelligence (AI) and data centers are at the core of our digital lives. Every time you search on Google, send an email, or stream a show, these technologies make it happen. But how much do we really understand about the energy they consume and the environmental impact they create? This exploration aims to shed light on these critical issues.

Understanding AI

AI involves creating systems that can perform tasks requiring human intelligence. Unlike traditional software that simply follows commands, AI learns from data. It identifies patterns and makes decisions on its own. Tools like ChatGPT and DALL-E have made AI accessible and popular.

AI operates in two key phases: training and inference. During training, an algorithm is developed using vast amounts of data. Inference is when the trained AI is presented with a problem and generates a solution. Both phases are energy-intensive.

The Role of Data Centers

Even though we think of our online activities as existing in “the cloud,” they rely on physical data centers. These facilities house rows of servers, which are powerful computers that provide services over the internet. Everything we do online, from watching Netflix to checking emails, is supported by these servers. Historically, video and image services drove data center demand, but recently, AI usage has surged.

Massive data centers run by companies like Amazon Web Services and Google Cloud occupy millions of square feet. They operate 24/7, requiring substantial electricity and cooling systems to prevent overheating.

Canada’s AI Scene

Canada may not lead in global AI, but it’s becoming increasingly significant in research and infrastructure, hosting around 239 data centers. Major cities like Toronto, Montreal, and Vancouver are key hubs.

Interestingly, studies suggest that if all data center projects currently in the works proceed, they could consume up to 14% of Canada’s total electricity by 2030. Some provincial governments, particularly in Alberta, are promoting these developments as a means of economic growth.

Alberta’s new strategy, released in 2024, aims to attract more data centers. The plan includes an ambitious $2.8 billion development named the "Wonder Valley AI Data Centre" park, proposed by entrepreneur Kevin O’Leary. This project could become the world’s largest AI data center park.

While Canada is starting to regulate AI, efforts so far have not directly addressed the environmental issues posed by data centers. In 2024, Ontario passed Bill 194, focusing on AI’s use in the public sector, but environmental concerns remain unaddressed.

Experts are calling for more proactive measures in both regulation and sustainable practices. A 2023 survey by the Canadian Institute for Climate Choices found that 72% of Canadians are concerned about the environmental impacts of technology, highlighting a growing public awareness of these issues.

In the next part of our exploration, we’ll dive into the specific environmental impacts of data centers, including their water usage and energy consumption. Understanding these factors is crucial for making informed choices about our future.

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