To harness AI potential, Canada needs to first mitigate its environmental footprint

The world of technology is moving fast, and unless we act equally fast, it could undo much of the progress made on climate and environment in the last decades. It will take robust policies to make sure we harness AI’s benefits while minimizing its environmental costs.

Several governments around the world have already begun to address the environmental impact of AI and data centres. 

In 2019, noticing AI was straining land and electricity resources, Singapore imposed a moratorium on new data centre construction. Singapore used this pause to develop comprehensive sustainability standards. When they began easing the moratorium in 2022, data centres were required to meet stringent efficiency requirements and were allocated specific power use allowances, with priority given to facilities powered by renewable energy.

The European Union has taken a broader approach through its AI Act, which not only addresses ethical and safety considerations but also incorporates environmental considerations. The Act prevents AI from undertaking certain activities, such as compiling a facial recognition database, or using manipulative techniques to distort user behaviour. However, many critics in the EU have argued that this act does not go far enough, while only including optional provisions for environmental guidance.

Based on global best practices and our analysis of AI’s environmental impacts, we recommend Canada adopt:

• Mandatory transparency and reporting: Data centres and AI service providers should publicly disclose their greenhouse gas emissions, energy consumption, water usage, waste generation, and renewable energy use. 
• Power and Water Efficiency Mandates: The government should set binding power and water efficiency mandates for data centres in Canada to ensure best practices in resource use are met.
• Fair cost distribution: Implement policies to ensure that infrastructure costs associated with accommodating AI energy demand are not disproportionately shifted to ordinary ratepayers, and that data centre and technology clients don’t pay less than the public for electricity.
• Responsible procurement policies: Government agencies should align their AI policies with climate and environmental goals.
• Renewable energy requirements: The government should establish binding targets requiring data centres to use 100 per cent renewable energy. 

These policies are about ensuring that AI services and data centres improve the lives of Canadians, instead of hurting our ability to have freshwater, a clean environment, and a safe climate. 

This is part 3 of our series addressing AI – see here for part one and part two.