This is the result of an increase in electricity consumption in the data center. A dark cloud has also cast over Google’s goal of achieving carbon neutrality by 2030. According to Google’s annual environmental report released on the 2nd (local time), Google’s greenhouse gas emissions in 2023 amounted to 14.3 million tons (based on CO2e in terms of carbon dioxide), a 13% increase from the previous year. It is a whopping 48% increase compared to 2019. Google pointed to increased energy consumption in data centers and increased supply chain emissions as the reasons for this surge in greenhouse gas emissions. This is because demand for data centers to develop and train AI models has exploded as generative artificial intelligence (AI) such as OpenAI’s ChatGPT has attracted attention. Google’s electricity consumption in data centers in 2023 increased by 17% year-on-year, which is estimated to be about 7% to 10% of global data center electricity consumption. In addition, supply chain emissions, which account for 75% of Google’s greenhouse gas emissions, increased by 8% during the same period. As competition to expand data centers with big tech companies such as Microsoft (MS) and Amazon intensifies, Google’s vision to achieve carbon neutrality by 2030 is also foggy.
This is because data centers are a representative energy-intensive industry that requires not only high-voltage transmission lines but also a significant amount of water to control heat generation. Goldman Sachs predicts that data centers will account for 8% of the total U.S. electricity consumption by 2030. “Achieving the net-zero goal by 2030 is a very ambitious goal,” Google’s Chief Sustainability Officer Kate Brandt said in an interview with the Associated Press. “We are doing our best to reduce emissions by signing a clean energy supply contract.” He added, “AI has a tremendous opportunity to come up with solutions to these climate problems.” Some say that concerns over environmental pollution caused by AI development are unfounded. “We should not overstate concerns about AI’s power consumption,” said Bill Gates, founder of Microsoft. “AI should contribute to the transition to eco-friendly energy and eventually address the shortcomings of greenhouse gas emissions.” However, Microsoft announced last month that its carbon emissions have increased by nearly 30% since 2020 due to the data center’s construction.
“We hope Google will participate in more rigorous discussions on how to accelerate clean energy generation amid the climate crisis,” said Lisa Sachs, director of Columbia University’s Center for Sustainable Investment. “If Google works with cleaner companies and invests in the electricity grid, things will start to get better before they get worse.”
Meanwhile, shares of Google’s parent company Alphabet (Class C) closed at $186.61, up 1.15% from the previous session.
JULIE KIM
US ASIA JOURNAL
