AI’s energy appetite and what UK businesses should be doing about it
Artificial intelligence is hungry for energy. Behind every chatbot, Copilot, or agent are servers burning a lot of power.
As more UK companies adopt AI tools, it’s worth paying attention to how much energy those tools use and what that means for your sustainability targets and reporting requirements.
AI’s environmental footprint is growing
In 2022, Microsoft used 6.4 million cubic metres of water to cool its data centres, a 34 percent increase on the year before. Data for 2024 hasn’t been released in full, but you can predict the number is likely higher with the overall demand for cooling still rising.
A recent report from MIT Technology Review highlighted the scale of AI’s environmental impact. Training a single large model can emit as much carbon as five petrol cars over their lifetimes. Most of the ongoing energy use comes not from training, but from everyday use. If your business is regularly using generative AI, you’re contributing to that footprint.
Meta recently signed a long-term nuclear energy deal to meet the rising power demands of its AI infrastructure. UK businesses won’t be building their own data centres, but they do need to know how their chosen tools are powered.
What UK companies are expected to report
Larger companies in the UK are already required to report their energy use under the Streamlined Energy and Carbon Reporting (SECR) framework. This includes electricity used by cloud services and data platforms.
There are also mandatory climate-related disclosures under the Companies Act, aligned with the Task Force on Climate-related Financial Disclosures (TCFD). These cover governance, strategy and risk related to climate change.
New rules are on the way. The UK is planning to adopt the UK Sustainability Reporting Standards from 2026, based on international frameworks from the ISSB. These rules are expected to apply to a broader set of businesses over time, not just listed companies.
What you should be doing now
If you’re adopting AI tools in your business, now is the time to bring those decisions into your sustainability thinking. Start with these actions:
- Ask your technology suppliers how their services are powered
- Choose AI tools that run on low-carbon or energy-efficient infrastructure
- Build AI-related emissions into your ESG and SECR reporting if applicable
- Keep an eye on evolving UK sustainability standards
- Consider future procurement policies that factor in environmental impact
The British Standards Institution has published guidance to help companies measure the carbon footprint of AI systems. It’s an emerging area, but the direction of travel is clear.
Final thought
AI can improve productivity, creativity and insight. But it also comes with environmental cost. The businesses that understand that now, and plan accordingly, will be in a stronger position when stakeholders start demanding answers.
Interested in more content like this? Sign up to our Newsletter here.
How we can help
At iwantmore.ai, we specialise in helping businesses bridge the AI divide turning curiosity into capability and capability into competitive advantage.
We work with organisations to:
- Assess AI readiness: Understand where you are today across people, processes, and platforms.
- Identify high-impact use cases: Through discovery workshops and hands-on collaboration, we surface the areas where AI and automation can add the most value specific to your business.
- Design and implement practical solutions: From AI agents to process automation, we help you build solutions that deliver real business outcomes not just tech demos.
Whether you’re just starting out or looking to take your existing efforts to the next level, we’re here to guide you every step of the way.
We understand you are busy but don’t get left behind. Start your AI journey with confidence. Contact us and let’s explore what’s possible for your business.
Other AI articles you may be interested in:
Governments across the world are racing to develop and deploy AI, but their approaches couldn’t be more different. The United States, China and the United Kingdom have all released formal action plans in 2025 that give us a clear sense of their priorities, politics and philosophies on AI. Here’s what they’re doing and what it tells us.
We say it to every business we meet. Regardless of the project, you can have the coolest, sexiest, best bit of tech out there, but without the people being on board it is a complete waste of time and money. Rolling out AI is no different. It’s about people. What’s the best way of bringing people along on any tech journey? Other people.
Artificial intelligence is hungry for energy. Behind every chatbot, Copilot, or agent are servers burning a lot of power. As more UK companies adopt AI tools, it's worth paying attention to how much energy those tools use and what that means for your sustainability targets and reporting requirements.
AI is no longer a future trend — it’s a present-day advantage. While some businesses are building AI agents and transforming operations, others risk falling behind. This article looks at what’s driving the AI divide, why foundational knowledge matters, and how even small steps can unlock real competitive value. If you’re standing still, you’re already losing ground.
It was only a year or two ago that the role of prompt engineer was being touted as the next great career path. Thousands of job ads appeared. People the world over updated their LinkedIn profiles to highlight their prompt engineering skills. Fast forward a couple of years and the role is already on its way out.
The CTO is swamped with the day to day, the COO wants to see progress, the CFO wants to see hard ROI, and the CEO is reading headlines about competitors appointing ‘Chief AI Officers’ and is wondering why you don’t have one too. If this sounds familiar in your business, you might be wondering whether it’s time to create (or hire) a dedicated AI leader.
iwantmore.ai – The AI consulting firm that helps you build a smarter business
Wherever you are with your AI implementation initiatives, we have a range of stand-alone AI quick start services to help you fast track the transformative benefits of AI across your business.
