The rapid growth in demand for semiconductor chips powering artificial intelligence systems is triggering a sharp increase in global electricity consumption, especially in nations reliant on fossil fuels, environmental campaigners Greenpeace warned on Thursday.
East Asia — home to major chip manufacturing hubs such as Taiwan, South Korea, and Japan — remains heavily dependent on fossil fuel-based power grids. As the appetite for high-performance chips used in energy-intensive AI data centres surges globally, concerns are mounting over the environmental consequences.
According to Greenpeace, electricity consumption linked to AI chip production soared to nearly 984 gigawatt hours (GWh) in 2024 — a staggering 350 percent rise compared to the previous year.
The resulting carbon emissions climbed more than four-fold, reaching approximately 453,600 metric tonnes of CO₂ equivalent, up from 99,200 tonnes in 2023.
“Chip manufacturing is extremely energy-intensive. A large foundry can use as much as 100 megawatt-hours of electricity every hour,” the group stated.
Looking ahead, Greenpeace projects global power consumption for AI chip production could hit 37,238 GWh by 2030 — exceeding Ireland’s total annual electricity usage.
While major technology companies are funnelling vast sums into AI research and infrastructure, Greenpeace criticised the lack of progress in ensuring these developments are powered sustainably.
“The adoption of strategies to achieve 100 percent renewable energy across supply chains remains limited,” the report noted. It added that the expansion of chip production capacity would “inevitably contribute to a growing carbon footprint”.
The report urged leading tech giants such as Nvidia, Microsoft, Meta, and Google to support their suppliers in accelerating renewable energy use, and to commit to fully renewable-powered supply chains by 2030.
Though companies like Taiwan Semiconductor Manufacturing Company (TSMC) are reportedly shifting towards renewables, Greenpeace said the transition remains slow. TSMC told Bloomberg News that it is committed to low-carbon production and had seen a decrease in emissions per chip in 2024 based on internal metrics.
