The explosive growth of artificial intelligence has a hidden environmental cost, and a new report puts a stark figure on it: the electricity consumed by Nvidia's chips in 2025 could produce carbon emissions equivalent to those from burning coal sold by Russian Coal, a state-owned energy giant. The estimate, published by a coalition of environmental and digital rights groups, adds to mounting concerns about the climate impact of the AI boom.
According to the report, the chips Nvidia has sold since 2022 could, when operating this year, generate between four and 21 million tonnes of CO2 equivalent, depending on the carbon intensity of the electricity grids that power them. At the upper end, that would rival the emissions from Russian Coal's annual coal sales, a comparison that underscores the scale of AI's energy appetite.
The report also highlights a dramatic rise in Nvidia's supply chain emissions, which have increased by 725% since 2020—an additional 9.4 million tonnes of CO2 equivalent. Greenpeace East Asia, one of the groups behind the analysis, attributes this surge primarily to upstream activities: producing the components, materials, and manufacturing services required for Nvidia's GPUs and AI systems. These emissions fall under Scope 3, the indirect emissions that companies often struggle to track and disclose.
Data compiled from Nvidia's sustainability reports show that these supply chain emissions grew from about 1.3 million tonnes of CO2 equivalent in 2020 to 10.7 million tonnes in 2026. Yet Nvidia does not currently disclose emissions from the use of its sold products, a gap the report's authors say obscures the true climate footprint of its technology.
“The biggest AI profiteer also has one of the world's most obscured and opaque climate footprints,” said Ketan Joshi, the report's lead author and an Oslo-based climate and energy analyst. “Nvidia's claims that AI has a 'net climate benefit' are a greenwashing tactic used by the industry to mask ballooning pollution.”
Data centres and the climate dilemma
Nvidia has publicly argued that AI is likely to reduce overall emissions. Josh Parker, Nvidia's head of sustainability, told US climate news outlet Heatmap in May that “the very rapidly growing consensus is that AI is most likely to lead to net emissions reductions, especially if it's deployed broadly.” He cited organisations including the International Energy Agency, the World Economic Forum, Boston Consulting Group, and the Grantham Institute, suggesting AI could cut emissions in other sectors through improved energy efficiency.
But the report challenges that optimism, arguing that efficiency gains may be overwhelmed by the rapid growth in demand for computing power. The authors call Nvidia's climate messaging “greenwashing” and point to the broader implications for Europe, where Big Tech is building massive data centres that rely on fossil fuels.
“Europe is being sold a fantasy of 'green' AI while Big Tech drives a massive build-out of emission-pumping data centres and fossil-fuel infrastructure,” said Jill McArdle, an international corporate campaigner at Beyond Fossil Fuels. “Calling this a climate-friendly technology revolution doesn't make it one – it's greenwashing designed to secure Big Tech's profits while locking Europe into more gas and energy dependence.” McArdle urged decision-makers to “deprioritise dirty data centres controlled by Big Tech.”
The report also scrutinises Nvidia's promotion of “demand response,” a mechanism where data centres temporarily reduce or shift their electricity use during peak periods to ease pressure on the grid. Nvidia has presented this flexibility as a way for data centres to support the energy transition. However, the authors argue that these short periods of flexibility may do little to offset the much larger, year-round increase in electricity demand as more data centres come online. Citing research from Princeton University, they note that demand response may cover less than 1% of the year in scenarios with high data centre growth.
The researchers call for greater transparency from Nvidia, including disclosure of emissions from the use of its chips and stronger evidence for its claims that AI can deliver a net climate benefit. As Europe grapples with its own energy challenges—from the fallout of the war in Ukraine to the push for renewable independence—the report serves as a reminder that the digital revolution is not without its environmental costs. The findings come amid broader debates about Europe's climate future and the need for sustainable technology policies.
