Introduction
Unchecked and rapid development projects worldwide are frequently undertaken without adequate regard for environmental consequences, resulting in severe ecological degradation, loss of biodiversity, pollution, and increased vulnerability to climate change. This rampant infrastructure expansion presents complex challenges for policymakers as they attempt to balance the imperatives of economic growth with environmental sustainability.
Globally, the imperative to build resilient and sustainable infrastructure has been widely recognized, yet many projects proceed with insufficient environmental safeguards. The latest development that has rapidly made its space in all our lives is the advent of Artificial Intelligence.
In 2025, the answers to all our questions are one prompt away, lives have been made significantly easier. However, as easy as it may seem to push prompts and resolve all our problems in a click, we might just be neglecting a greater problem ahead of us with the arrival of artificial intelligence.
Behind this wave of digital innovation lies a rapidly growing environmental footprint. AI systems can consume the equivalent energy of 120 homes per year, data centers gulp down 1.7 billion gallons of water annually, and have carbon footprints to rival entire countries.
AI systems consume enormous quantities of energy and water, drive resource-intensive hardware demand, and create waste, raising new questions for lawmakers, companies, and consumers. In 2025, as technologies emerge even more evolved, understanding and minimizing AI's environmental impact has become an urgent global priority.
Development of AI and Its Environmental Impact
Massive Energy Consumption
Despite the efforts of governments nationally and internationally to limit carbon emissions, AI has become yet another factor spiraling carbon emissions in multifold. Training and operating advanced AI models requires immense computing power. Training a single large model (such as GPT-3 or its successors) can generate emissions equal to hundreds of round-trip flights between major cities.
The data centers that run these models 24/7 devour electricity at astonishing rates: for example, a single ChatGPT query can consume five to ten times more electricity than a standard web search. By 2027, AI is projected to use up to 0.5% of global electricity, with total consumption surging alongside increased adoption.
Water Use and Consumption
There is a concerning supply of water and resources that are limited to fuel the functioning of artificial intelligence. AI data centers need powerful cooling systems to prevent overheating, leading to extraordinary water consumption. Companies like Microsoft have reported jumps of more than 30% in water usage primarily due to AI operations.
In water-scarce areas, this can heighten the risk of shortages for communities and agriculture. Furthermore, manufacturing specialized AI hardware, relying on rare earth elements like neodymium and gallium, contribute to resource depletion, habitat destruction, and pollution in mining regions.
Creation E-Waste
AI is substantially shortening hardware lifecycles because each new generation of AI models demands more powerful and specialized computing equipment. As organizations rush to adopt the latest and most efficient hardware to keep up with rising computational needs, older devices become obsolete far faster than before, resulting in frequent upgrades and early retirement of servers, GPUs, and chips. This rapid hardware turnover leads to mounting electronic waste and increased mining of rare earth materials, both of which have severe environmental consequences.
From the above discussion, it is safe to conclude that AI consumes a large amount of resources that are already scarce, which could further have dire consequences if left unaddressed and unregulated. It is pertinent to understand the availability of these resources and in the Indian context, especially with the establishments of massive AI data centres in India, and the nation's leading advancements in the field of Artificial Intelligence.
AI Development and Challenges in India
Access to Clean Water
In a developing country like India, with a mammoth population of 140.48 crore people, about 20% of rural households do not have access to tap supply in households, reports the government's Jal Jeevan Mission. Such data draws an alarming picture regarding the availability and access to water. In an ominous state of affairs such as this, the immoderate usage of water resources poses a serious threat to the access to common households already deprived of such basic necessity.
Access to energy
India has emerged as a power surplus nation, as per the declaration made by Union Power Minister Shri Manohar Lal, with the deficit being 0.1% in the fiscal year 2024-2025, with the energy consumption averaging lesser than the projected 270 GW. India generates electricity in two ways, first, by harnessing heat from burning fuel and nuclear reactions, and secondly, sun, wind, or moving water. India runs ahead of its target electricity generation through non fuel sources. Despite that, it is a well known fact that fuel sources are finite and they cannot be regenerated in human lifespan. As per Press Information Bureau of India, renewable sources now make up 46.3% of the country's total installed power capacity in generating electricity.
The question however arises over the energy usage of AI data centres, since India will require 40-50 Terawatt-hours (TWH) of additional electricity and 45-50 million square feet of real estate space to meet the projected demand for artificial intelligence (AI)-driven data centres by 2030, according Deloitte India's report Attracting AI Data Centre Infrastructure Investment in India.
Further, according to the International Energy Agency, the electricity usage by the AI data centres may double by 2030.
Carbon Emissions
There is also great pressure from the west with respect to the carbon emissions and developing countries are often under surveillance in this regard. India is party to the Kyoto Protocol and the Paris Agreement, however, the Press Information Bureau in a release on 21st March 2022 has informed that as per the provisions of these treaties, India is not obliged to stop the carbon emissions.
Nonetheless, India has to remain committed to the goals of ensuring that the commitments of the agreement are fulfilled and the Union government has ratified the agreement. It is a duty towards the citizens of the future to be able to live in a clean, pollution-free world. The entry of Artificial Intelligence and the subsequent emissions increased by the data centres pose a threat to the progress made by India in controlling carbon emissions.
Regulatory Framework
Laws regulating the environmental impacts of artificial intelligence are still emerging but are increasingly recognized as essential to controlling AI's growing ecological footprint. Some national and global efforts lay emphasis on establishing frameworks to prevent AI from exacerbating climate change, resource depletion, and pollution. Pertinent regulatory approaches include applying the precautionary principle to AI development, requiring environmental impact assessments for AI systems, setting energy consumption and emissions standards, and enforcing punitive measures for violations.
For example, the US introduced the Artificial Intelligence Environmental Impacts Act of 2024, which is currently a bill that establishes a voluntary reporting system to promote transparency and mitigation of AI's lifecycle environmental effects. Meanwhile, legal scholars suggest the need for laws that conditionally restrict or ban certain high-risk AI uses and mandate adherence to sustainability standards.
These laws aim to actively reduce the negative environmental consequences of AI by setting coherent administrative, and punitive measures for developers and users. However, comprehensive, binding environmental regulations specific to AI remain limited globally, creating an environment of urgency for accelerated policy development to align AI innovation with environmental protection.
In India, there is currently no specific legislation dedicated solely to regulating the environmental impacts of artificial intelligence. However, the government acknowledges the need for regulatory measures and ethical guidelines to ensure AI development aligns with national interests, including sustainability. Existing laws such as the Information Technology Act, 2000, and the Digital Personal Data Protection Act indirectly govern aspects of AI but do not address its environmental footprint explicitly.
The National AI Strategy by NITI Aayog promotes prudent AI principles laying down transparency which provides an ethical framework but lacks binding legal force. Experts highlight that while AI holds great promise for environmental protection and sustainable development, its massive energy consumption, e-waste generation, and potential ecological harm require urgent policy intervention.
Conclusion
As artificial intelligence increasingly integrates into all facets of our digital and physical lives, the environmental consequences it carries demand urgent and prominent attention within regulatory frameworks and business strategies alike. The challenge before us is to find a sustainable balance between technological advancement and environmental stewardship.
This requires a commitment to robust legal frameworks that not only measure and regulate AI's environmental footprint rigorously but also foster a culture of transparency and accountability among developers, users, and policymakers. Immediate actions, including the implementation of stronger regulations, clear sustainability standards, and responsible industry practices, are essential.
By addressing the environmental impact of AI proactively and comprehensively, we can ensure that the technology fulfills its potential as a catalyst for positive innovation while simultaneously becoming a genuine force in promoting ecological preservation and a sustainable future for generations to come.
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