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December 24, 2024


 

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BUSINESS / Tech


U.N. WARNS DIGITAL ECONOMY DRIVE IS DAMAGING THE ENVIRONMENT

Electronic waste — also known as e-waste — from computers in a junk shop in
Metro Manila, Philippines | REUTERS
By Robin Millard
AFP-JIJI
SHARE/SAVE
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Jul 11, 2024
Listen to this article
5 min

Geneva –

The drive toward a digital economy comes at an environmental cost, the United
Nations warned Wednesday, with big data centers consuming vast amounts of water
and energy.

While digitalization fuels global economic growth, its environmental
repercussions are becoming "increasingly severe," the U.N. trade and development
agency UNCTAD said in a report.





The agency called for sustainable strategies to counter the growing
environmental toll, particularly in developing countries.

"Digitalization continues to move at warp speed, transforming lives and
livelihoods. At the same time, unregulated digitalization risks leaving people
behind and exacerbating environmental and climate challenges," U.N. chief
Antonio Guterres said in the report.

He cautioned that increased reliance on digital tools was directly impacting the
environment, from depleting raw materials, consuming water and energy, spewing
air pollution, and generating waste.

"These are accentuated by emerging technologies such as artificial
intelligence," he said.

Data remains sketchy on how rapidly evolving AI is affecting the environment.

UNCTAD chief Rebeca Grynspan called on the world's biggest tech companies to
lead the way by producing standardized data.

Google recently reported a 48% increase in its greenhouse gas emissions over the
five years to 2023, attributed to powering data centers that support AI
operations.

Similarly, Microsoft's latest sustainability report showed a 29% increase in
greenhouse gas emissions last year compared to 2020.

Google and Microsoft have each pledged to become carbon neutral by the end of
this decade.


RUSH TO AI

U.S. investment bank Goldman Sachs last month said the promise of generative AI
technology was leading tech giants to spend an estimated $1 trillion on capital
expenditure in the coming years, including investments in data centers, chips
and other infrastructure.

"But this spending has little to show for it, so far," it said, with questions
over "whether this large spend will ever pay off in terms of AI benefits and
returns."

Shamika Sirimanne, UNCTAD's director of technology and logistics, said the
question of what AI should be used for — whether for public good or for search
engines, marketing or selling t-shirts — "hasn't happened yet."

"But before it is too late, we need to embark on this conversation."

In its Digital Economy Report 2024, UNCTAD gave a few examples of digital
economy impacts on the environment.

The report said the information and communications technology sector emitted
between 0.69 and 1.6 metric gigatons of carbon dioxide in 2020.

That represents 1.5% to 3.2% of global greenhouse gas emissions — about the same
as air transport or shipping.

Producing a 2 kilogram computer requires approximately 800 kg of raw materials,
it said.

Demand for critical minerals like graphite, lithium, and cobalt could surge by
500% by 2050, said UNCTAD.



Fans are at a Bitcoin "mining" operation in Mechanicville, New York. | Cindy
Schultz / The New York Times




BITCOIN USING MORE ENERGY THAN BELGIUM

Data centers consumed 460 terawatt hours of electricity in 2022, with
consumption expected to double by 2026.

The report said that in Ireland, data center electricity use more than
quadrupled between 2015 and 2022, and now accounts for 18% of the entire
country's electricity consumption — a figure that could rise to 28% by 2031.

The global energy consumption of "mining" bitcoin, the most prominent
cryptocurrency, rose about 34 times between 2015 and 2023 to reach an estimated
121 TWh.

That puts bitcoin mining ahead of entire countries like Belgium and Finland,
Grynspan told reporters.

This, she said, is "not something that we can consider marginal."

"Digitalization is a welcome and necessary driver of global economic growth, but
we need to do it in an inclusive and sustainable way," she concluded.

"As rapid digitalization escalates environmental concerns, it's now more urgent
than ever to have the right policies in place so we can manage properly the
impact on the environment."


KEYWORDS

U.N.(https://www.japantimes.co.jp/tag/un), GLOBAL
economy(https://www.japantimes.co.jp/tag/global-economy),
environment(https://www.japantimes.co.jp/tag/environment),
emissions(https://www.japantimes.co.jp/tag/emissions),
AI(https://www.japantimes.co.jp/tag/ai),
bitcoin(https://www.japantimes.co.jp/tag/bitcoin),
cryptocurrencies(https://www.japantimes.co.jp/tag/cryptocurrencies),
Digitalization(https://www.japantimes.co.jp/tag/digitalization),
TECH(https://www.japantimes.co.jp/tag/tech), DATA
CENTERS(https://www.japantimes.co.jp/tag/data-centers)
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