The energy costs of Artificial Intelligence are becoming unsustainable, the shock report from the European Environment Agency

Artificial Intelligence Alarm: the new report from European Environmental Agency (EEA) ‘Artificial intelligence and sustainable consumption in Europe’ shows the growing pressure that AI infrastructures are placing on the continent’s resources. Which cannot and must no longer be ignored.

The impact of Artificial Intelligence

At the center of this story are the data centersIn fact, projections indicate that, driven largely by AI, the sector’s electricity demand is expected to nearly double by 2030. Europe already accounts for 15% of global data center electricity consumption, and the concentration of facilities around major urban centers is putting a strain on local networks.

But, as the report reports, the impact goes beyond energy:

The need to review policies

As Europe’s economy rapidly transforms through AI, our continent has a duty to investigate how targeted policy can both deliver economic benefit and manage the trade-offs of implementing these technologies at a time when environmental pressures need to ease.

The Agency’s latest report underlines precisely this: as AI technologies are rapidly expanding and capable of shaping systems, they have the power to redefine the functioning of economies, the ways in which consumption is decided and the organization of value chains.

Without clear policy guidance, these changes risk increasing demand for energy and materials, strengthening resource-intensive business models, sharpening strategic dependencies and exacerbating social inequalities – argues the EEA – Therefore, efficiency improvements alone are unlikely to be sufficient to reduce overall environmental pressure

The data presented in the paper demonstrates that the rapid expansion of data centers is in turn fueling the growing demand for energy, water and critical raw materials, noting that data centersnetworks and devices, as a whole, generate a growing environmental footprint that improvements in efficiency alone will be unlikely to offset.

The analysis comes at a time of growing geopolitical competition, economic uncertainty and strategic interdependencies, the Agency highlights. In this context, digital technologies and artificial intelligence are increasingly considered central to Europe’s competitiveness, resilience and strategic autonomy.

Addressing the dual transition – the green and digital transition combined – therefore represents not only an environmental challenge, but also a strategic one, which requires thoughtful choices on how to direct and regulate innovation

These findings are particularly relevant (or at least, they should) for the implementation of key EU legislative and policy frameworks linking digital transformation to sustainability and competitiveness.

Among these, they certainly should be integrated as soon as possible into the EU Artificial Intelligence Act, which came into force in 2024 but with most of the provisions becoming fully applicable on 2 August 2026.

The Regulation, in fact, establishes the rules for the development and use of AI systems across the EU, as well as broader strategies that place digitalisation at the center of economic competitiveness, while strengthening the objectives of the green transition.

Greater alignment between digital policies, consumption measures and environmental objectives – highlights the EEA – will be essential to ensure that Europe’s digital transformation supports climate neutrality, resource efficiency and long-term resilience

Sources: European Environmental Agency / European Environmental Agency/Facebook