AI and Crypto’s Dirty Secret, UN Warns of Alarming Climate Change Impact

Artificial intelligence and cryptocurrency have revolutionized technology and finance, but global organizations are raising red flags about their hidden environmental costs.

According to a new UN study, both sectors consume vast amounts of energy and resources, driving significant carbon emissions and accelerating climate change.

With Bitcoin mining, AI-powered data centers, and blockchain networks scaling rapidly, the environmental footprint is reaching unsustainable levels. 

From electricity usage to water demands, the impact extends far beyond digital innovation, posing a growing challenge to global climate goals.

Bitcoin Mining and Crypto’s Carbon Footprint

Bitcoin mining is one of the largest contributors to crypto’s environmental toll. Between 2020 and 2021, global Bitcoin mining consumed over 173 terawatt-hours of electricity, equivalent to the annual usage of a mid-sized nation.

This massive demand produced a carbon footprint comparable to operating nearly 190 natural gas plants or burning 84 billion pounds of coal. Offsetting this pollution would require planting billions of trees across land the size of entire countries.

Fossil fuels dominate Bitcoin’s energy mix, with coal and natural gas accounting for two-thirds of its power sources. Renewables such as solar and wind remain a small fraction, exposing the industry’s reliance on carbon-heavy grids.

AI Energy Consumption and Data Center Strain

AI models, including large-scale systems like ChatGPT, require extraordinary computational power. A single AI query uses up to ten times more electricity than a typical Google search.

Data centers running these systems already account for 2% of global electricity use, with projections hitting 3.5% within three years. This level would rival the consumption of an industrialized nation like Japan. 

Cooling these facilities also requires enormous water resources, with estimates exceeding 175 billion liters in 2023.

As AI adoption expands, so does electronic waste from chips and hardware. By 2030, AI could generate five million tonnes of e-waste, compounding environmental risks.

Global Carbon Emissions and Climate Concerns

The combined impact of AI and crypto could account for a growing share of worldwide emissions. Analysts predict Bitcoin mining alone may generate 0.7% of global CO2 output by 2027.

Water stress is another growing concern. Many data centers operate in drought-prone regions, competing with local communities for scarce resources. 

Nuclear power is being adopted as a “clean” alternative, but it raises concerns over radioactive waste and long-term ecological risks.

UN Recommendations for a Sustainable Future

The UN and other climate groups are urging governments, corporations, and investors to act decisively. Proposed solutions include:

• Transitioning crypto mining and AI infrastructure to renewable energy
• Implementing carbon taxes or electricity surcharges for miners
• Increasing transparency in reporting emissions and energy use
• Promoting innovation in energy-efficient AI and blockchain technology
• Addressing global equity issues, ensuring vulnerable regions are not disproportionately impacted

Without these changes, the promise of AI and blockchain could be overshadowed by their role in worsening climate change.

Read more: Best AI Stocks 2025: Top Artificial Intelligence Companies and ETFs to Invest In

Final Thoughts

AI and crypto represent cutting-edge innovation, but their environmental cost is no longer a hidden issue. With rising energy consumption, water demand, and carbon emissions, these industries are now part of the climate crisis equation. 

Immediate action through policy, technology, and corporate responsibility is essential to align their growth with global sustainability goals.

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FAQs

How much energy does Bitcoin mining use?

Bitcoin mining consumed about 173 terawatt-hours of electricity in 2020–2021, similar to the annual energy usage of a medium-sized country.

Why is AI bad for the environment?

AI requires massive computing power, leading to high electricity use, water-intensive cooling for data centers, and increasing e-waste from specialized chips.

What percentage of global emissions come from crypto?

By 2027, crypto mining could account for nearly 0.7% of worldwide CO2 emissions if growth continues unchecked.

Can crypto and AI run on renewable energy?

Yes, but adoption is limited. Only a small percentage of crypto mining currently relies on renewables like solar and wind, while most AI data centers depend on fossil-fuel-based grids.

What solutions has the UN suggested for AI and crypto’s environmental impact?

The UN recommends renewable energy adoption, carbon taxes, mandatory transparency in energy use, and innovations in greener technology to reduce climate impact.