Nvidia is facing increasing environmental criticism as its artificial intelligence business drives massive demand for computer chips and data centres. Environmental campaigners argue that the company’s rapid expansion under cofounder Jensen Huang has created significant climate challenges.
The company’s powerful graphics processing units have fuelled the global AI boom. However, manufacturing these chips requires substantial water, chemicals and energy, while expanding data centres places additional pressure on electricity grids.
Environmental organisations have also raised concerns about electronic waste and the long-term consequences of increasing AI infrastructure.
Nvidia’s Carbon Emissions Raise Environmental Concerns
An analysis published in September found that Nvidia’s supply-chain emissions increased by 725 percent between 2020 and 2026. The company’s reported supply-chain emissions reached approximately 10.7 million metric tons of carbon dioxide in fiscal year 2026.
Furthermore, researchers estimated that emissions from operating Nvidia’s sold chips could have reached 21 million metric tons in 2025. These figures highlight the environmental costs associated with manufacturing and using advanced AI technology.
However, Nvidia’s direct operational emissions remain considerably lower. The company’s facilities and vehicles produced approximately 9,822 metric tons of greenhouse gas emissions in fiscal year 2026.
Nvidia also achieved its goal of matching 100 percent of its facilities’ electricity consumption with clean-energy purchases in 2025.
Greenpeace Demands Greater Climate Accountability
Greenpeace has urged Nvidia to extend its clean-energy commitments across its entire manufacturing supply chain. The organisation also wants the company to invest in renewable energy and strengthen human-rights protections.
Huang previously described artificial intelligence as an important opportunity to address climate change. Nevertheless, he acknowledged that expanding data centres would increase fossil-fuel consumption in the near term.
Meanwhile, Nvidia has invested in energy technologies, battery recycling and artificial intelligence tools designed to improve electricity grid management.
Environmental groups remain concerned that these initiatives could accelerate data-centre expansion without adequately protecting local communities.
The company’s environmental future will depend on its leadership and willingness to address these concerns. As AI adoption continues worldwide, pressure on technology companies to balance innovation with climate responsibility is expected to increase.
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