Google, Microsoft, And Meta Linked To $5.4 Billion In Health Costs As AI Data Centers Fuel Pollution Crisis In The US: Report

A new study from UC Riverside and Caltech has found that pollution from Big Tech's data centers has cost the U.S. public health system an estimated $5.4 billion over the past five years. Alphabet Inc.'s GOOG GOOG Google, Microsoft Corp. MSFT, and Meta Platforms Inc. META are among the biggest contributors.

What Happened: Data centers, which power artificial intelligence models and cloud computing, consume vast amounts of electricity, much of it sourced from fossil fuels.

Air pollution linked to these energy demands has been tied to increased cases of cancer, asthma, and other illnesses, researchers found, reported the Financial Times, citing the study.

In 2023 alone, public health costs from data center-related pollution were estimated at $1.5 billion, up 20% from the previous year.

Over the five years from 2019 to 2023, Google was responsible for the highest estimated health costs at $2.6 billion, followed by Microsoft at $1.6 billion and Meta at $1.2 billion.

In response to the report, Google, Microsoft, and Meta pushed back on the findings, arguing that the research overestimated their pollution levels.

Google told the publication that the estimates "promote an inaccurate emissions estimate generated under false pretenses." Microsoft pointed to its sustainability efforts, while Meta reiterated its commitment to "net zero greenhouse gas emissions."

Google, Microsoft, and Meta did not immediately Benzinga's request for comments.

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Why It Matters: The rapid expansion of AI infrastructure, fueled by Big Tech's multi-billion-dollar investments, is expected to further increase data center pollution, the report noted.

U.S. data centers accounted for 4% of the nation's electricity consumption in 2023, a figure that could rise to 12% by 2028, according to a Department of Energy-backed Berkeley Lab report.

"Unlike carbon emissions, the health impacts caused by a data center in one region cannot be offset by cleaner air elsewhere," said Shaolei Ren, associate professor at UC Riverside, underscoring the local impact of air pollution.

Ren suggested that tech companies could reduce the rising public health risk by building data centers in less populated areas. This would help minimize their impact.

Microsoft, Alphabet, Amazon.com, Inc. AMZN, and Meta expect to spend over $320 billion on AI this year, up from $151 billion in 2023 and $246 billion in 2024. Last month, OpenAI and SoftBank Group SFTBY SFTBF also announced “Stargate,” a $500 billion AI infrastructure project in the U.S.

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