AI Chip Boom Sparks 350% Surge in Global Electricity Use, Greenpeace Report
A new Greenpeace report reveals that global electricity consumption for manufacturing AI chips increased by more than 350%, from 218 gigawatt hours (GWh) in 2023 to nearly 984 GWh in 2024. Greenpeace East Asia’s report titled ‘Chipping Point’ states that by 2030, global electricity consumption for AI chipmaking could increase by as much as 170 times the 2023 levels. This is equivalent to Ireland’s current electricity consumption. East Asia’s electricity grids mainly depend on fossil fuels, such as coal, oil, and natural gas. This poses a challenge for AI chipmakers, obstructing the advancement of renewable energy. In South Korea, 58.5% of electricity generation comes from fossil fuels, while Japan depends on them for 68.6% of its electricity. Taiwan’s reliance on fossil fuels is even higher, with 83.1% of its electricity supply derived from these sources. Katrin Wu, Greenpeace East Asia Supply Chain Project Lead, said, “While fabless hardware companies like Nvidia and AMD are reaping billions from the AI boom, they are neglecting the climate impact of their supply chains in East Asia.” Role of policymakers The South Korean government approved the construction of a 1.05 GW liquid natural gas (LNG) combined heat and power plant for chip supplier SK Hynix in 2024. The government also plans to build a 3 GW LNG capacity for Samsung in the National Semiconductor Cluster. The Yogin area, densely populated with semiconductor fabs, would require an estimated 10 GW of electricity, accounting for 25% of the total power demand in the area. These initiatives are also placing a significant strain on the country’s national grid. The Taiwan Power Company (Taipower) has also seen increased power demand from its semiconductor and AI sectors, further justifying the expansion of LNG projects and grid infrastructure. Greenpeace East Asia climate and energy campaigner Rachel Yu told AIM that policymakers in the region must support the expansion of renewable energy infrastructure and “promote renewable energy electricity purchasing and investments by AI companies and their suppliers.” This will not be possible if governments continue to expand their gas capacities. She added that the “new gas capacity will only perpetuate the cycle of fossil fuel dependence and climate emergency.”“Chip manufacturers like TSMC and Samsung are some of the most influential companies in East Asia. They need to both advocate for governments to increase renewable energy capacity, particularly from wind and solar, and to invest directly in renewable energy themselves,” Yu said. Additionally, Yu further added that there is a “lot of untapped potential for TSMC and other chipmakers to invest in more diverse renewable energy sources, including solar and geothermal.” Also, “the purchase of Renewable Energy Certificates (RECs) often does not lead to new renewable energy projects because buyers can claim environmental benefits without physically consuming green electricity.” Yu also highlighted Apple’s announcement in March 2025 of its second Clean Energy Fund in mainland China, worth more than $99 million. “The fund is expected to add approximately 550,000 megawatt-hours of wind and solar capacity each year.” The company has also set a target to achieve 100% renewable energy across its supply chain by 2030. However, the report has encouraged tech companies like Nvidia, Meta, and Google to intensify their efforts to reduce supply chain emissions by achieving 100% renewable energy by 2030, to meet client requirements. Increasing Carbon emissions Global emissions from electricity consumption in AI chip manufacturing increased by an estimated 357% in 2024, from 99,200 metric tons of CO₂ equivalent in 2023 to 453,600 metric tons of CO₂ equivalent in 2024. This is a staggering 4-fold increase in 2024. South Korea’s emissions from AI chipmaking have more than doubled year-on-year, from 58,000 metric tons in 2023 to 135,900 metric tons in 2024. Similarly, Japan reached 132,100 metric tons in CO₂ emissions last year. “Nvidia and its peers have a number of pathways to decarbonise their supply chains, including investment in local renewable energy resources, such as wind and solar, signing of Power Purchase Agreements (PPAs), and the construction of their renewable energy capacity. There should be no excuse for rapidly growing emissions from the AI supply chain.” Greenpeace says that there must be increased scrutiny of the AI and chip manufacturing sector to reduce its carbon footprint. The report noted that the AI chip sector lags significantly behind the major tech brands’ commitments to adopt renewable energy in recent years. “Unfortunately, AI companies are not taking adequate steps to ensure that their supply chains are powered by renewable energy. It is one thing for Nvidia to target 100% renewable energy across its operations. Still, by neglecting to curtail emissions from its supply chain, Nvidia is missing the bigger picture,” Yu added. According to Greenpeace, this can be achieved by sourcing renewable energy locally through practical strategies, such as building and investing in renewable energy generation facilities and exploring long-term power purchase agreements. Yu stated that people “may think of AI as a futuristic technology, but unfortunately, AI chipmaking is still powered largely by outdated fuel sources.”
While fabless hardware companies like Nvidia and AMD are reaping billions from the AI boom, they are neglecting the climate impact of their supply chains in East Asia.
While fabless hardware companies like Nvidia and AMD are reaping billions from the AI boom, they are neglecting the climate impact of their supply chains in East Asia.
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Smruthi brings over two years of experience in reporting on the global energy industry. They hold a Master's Degree from the University of Leeds in International Journalism and a Bachelor's Degree from Christ University in Media Studies, Economics and Political Science.