Nvidia AI Emissions Surge 725% Since 2020, Now Match Russian Coal Giant's Output

Nvidia Supply Chain Emissions Triple as AI Boom Accelerates

Nvidia's supply chain emissions nearly tripled from 2024 to 2026, according to the chipmaker's recent sustainability report, marking a dramatic 725% increase since 2020. The world's most valuable company, now worth $5 trillion, has seen its environmental footprint surge alongside its financial success. Earlier this summer, Nvidia reported nearly $60 billion in quarterly profits, more than doubling over the prior year, as demand for its AI chips continues to soar1

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The supply chain emissions rose from approximately 1.3 million tonnes of carbon dioxide equivalent in 2020 to 10.7 million tonnes in 2026. According to Greenpeace East Asia, one of eight environmental groups behind a new report, the increase was primarily driven by upstream emissions from producing the components, materials, and manufacturing services required for Nvidia's GPUs and AI systems2

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. The company controls an estimated 90 percent of the U.S. market for advanced semiconductors, making its environmental cost of AI a critical concern for the industry's overall climate impact1

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AI Emissions Rival Russian Coal Giant's Carbon Footprint

A report published by climate and civil society groups, including Greenpeace International, Friends of the Earth, Beyond Fossil Fuels, and Stand.earth, estimates that operating Nvidia chips sold since 2022 could have generated between 4 and 21 million tonnes of CO2 equivalent in 2025, depending on the electricity used to power them. This puts the AI's environmental footprint on par with emissions from burning coal sold by Russian Coal, a state-owned Russian coal giant2

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Nvidia does not currently disclose emissions from the use of its sold products. The report's estimate is based on cumulative chip sales, assumed utilization, and different grid emissions factors. Ketan Joshi, lead author of the report and an Oslo-based climate and energy analyst, stated: "The biggest AI profiteer also has one of the world's most obscured and opaque climate footprints. NVIDIA's claims that AI has a 'net climate benefit' are a greenwashing tactic used by the industry to mask ballooning pollution"2

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Josh Parker Defends AI's Net Impact on Climate

Josh Parker, head of sustainability at Nvidia, emphasized that artificial intelligence has "huge potential to drive net emissions reductions" despite current AI emissions. Speaking about AI's net impact on climate, Parker argued that AI-driven energy savings in manufacturing, buildings, and transportation could help cancel out the technology's carbon footprint. He also cited "moonshots" like nuclear fusion, stating: "Even if A.I. only accelerates commercializable nuclear fusion or even advanced fission by a year, the terms of carbon savings and energy abundance and affordability are really, really dramatic"1

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Parker told U.S. 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 organizations including the International Energy Agency, World Economic Forum, Boston Consulting Group, and Grantham Institute, saying AI could cut emissions in other sectors through measures such as greater energy efficiency2

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AI-Driven Data Center Boom Fuels Energy Consumption Surge

The AI-driven data center boom has pushed U.S. electricity demand upward for the first time in decades, fueling the construction of natural gas turbines and diesel generators that will increase greenhouse gas emissions. There's no end in sight to this trend. Parker said Nvidia is working to make data centers more energy efficient and cited the company's efforts to build facilities with local timber, stating that "data centers absolutely can be sustainable"1

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However, environmental groups challenge these sustainability claims. Jill McArdle, an international corporate campaigner at Beyond Fossil Fuels, stated: "Europe is being sold a fantasy of 'green' AI while Big Tech drives a massive build-out of emission-pumping data centers and fossil-fuel infrastructure. 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"2

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AI Chip Manufacturing Drives Supply Chain Emissions

Nvidia designs processors that have become central to the generative AI boom, while much of their AI chip manufacturing takes place through suppliers in East Asia. The report indicates that Nvidia's supply chain emissions largely come from the raw materials and manufacturing involved in producing its chips. Producing advanced semiconductors requires significant amounts of energy consumption, while the chips continue consuming electricity once installed in data centers running AI models2

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The report argues that efficiency gains may not reduce the overall impact when demand for computing power is rising rapidly. It also challenges Nvidia's claim of "demand response" where data centers temporarily reduce or shift their electricity use during periods of peak demand. 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 centers come online. Citing research from Princeton University, they said demand response may cover less than 1% of the year in scenarios with high data center growth2

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Researchers behind the report 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 net emissions reductions. They also want the company to account for the wider emissions impact of data center growth and set clearer targets to cut supply chain emissions, including through additional renewable energy investment2

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