Study: Data Centers Emit Far More CO2 Than Projected
A new Allianz Trade study finds that data centers emitted 286 million tons of CO2 in 2025—57% more than the International Energy Agency estimated. AI already consumes 15-20% of data center electricity, a share that could rise to 40% by 2030.
The global surge in data center construction, driven by the growing demands of artificial intelligence, is leading to a sharp increase in greenhouse gas emissions. According to a study by Allianz Trade, the trade credit insurer of the Allianz Group, data centers worldwide emitted 286 million metric tons of carbon dioxide in 2025—57% more than forecasts by the International Energy Agency (IEA).
The report highlights that artificial intelligence already accounts for 15-20% of total data center electricity consumption. By 2030, that share could climb to 40%. Patrick Hofman, senior climate economist at Allianz, noted that in many regions, data centers have transformed from a marginal factor into a structural driver of electricity demand.
Without measures to decarbonize power grids, data center emissions could more than double by 2030. If that happens, the annual climate damage caused by these emissions would reach approximately $154 billion (€135 billion), compared with the current $68 billion. AI-related damages alone could exceed $50 billion per year.
Data centers also place a heavy burden on water resources. By 2030, they may require between 1.3 and 1.8 trillion liters of water for cooling—an amount equivalent to Switzerland’s annual consumption. The study emphasizes that emission levels vary greatly depending on the energy source. For example, in India, electricity generation emits over 600 grams of CO2 per kilowatt-hour, while in Norway and Sweden, where production is largely decarbonized, the figure is under 30 grams. Currently, nearly 70% of global data center emissions are concentrated in the United States and China, the world leaders in AI development.
The Allianz Trade study suggests that curbing this impact will require both improved energy efficiency and a shift toward decarbonized electricity generation.
