UK tech bosses warn AI growth may hurt green goals

UK technology executives warn that artificial intelligence growth could undermine environmental goals as businesses mark World Environment Day.

Leaders at cloud, software and managed services providers say many organisations still treat sustainability as a side project even as they expand data-heavy services and AI workloads.

Terry Storrar, Managing Director UK at Leaseweb, said pressure is mounting on data centre operators as customers demand more intensive computing environments. He pointed to GPU-heavy AI workloads and advanced architectures that consume large amounts of power and generate more heat than traditional systems.

"It is no surprise that sustainability remains top of mind across the data centre industry. At the same time, customer demand for infrastructure that supports increasingly high power densities is growing fast. AI workloads rely heavily on GPUs, and advanced computing architectures require large volumes of reliable, tightly controlled power. Demand for high-performance compute capacity has therefore skyrocketed.

This creates an immense challenge for operators: how to deliver the next generation of infrastructure without placing unsustainable strain on energy resources or the grid. To address this, innovation is happening across the entire data centre stack. From major investment in new cooling technologies, such as liquid direct-to-chip systems and fully liquid-cooled racks, to advanced analytics and AI-driven monitoring tools, the industry is working to optimise energy consumption and improve operational efficiency.

In many regions, particularly across Europe, energy availability is also becoming a major concern. This is driving greater collaboration between data centre operators, energy providers and policymakers to ensure capacity can expand in a way that supports both technological progress and climate commitments.

As we reflect on this year's World Environment Day, the industry has already taken significant steps towards meeting stringent environmental goals, but there is still a long way to go. From renewable energy partnerships to efficiency standards and transparent reporting frameworks, operators are prioritising long-term investment that enables digital growth while maintaining accountability for environmental impact," said Terry Storrar, Managing Director UK at Leaseweb.

His comments reflect wider concern in the infrastructure sector about grid constraints in parts of Europe and the impact of rising demand for AI services. Operators are testing liquid cooling, higher-density racks and more detailed monitoring in response.

While large data centres draw most attention, smaller technology firms say basic operational choices still shape environmental performance. Hugh Scantlebury, Chief Executive Officer and Founder of accounting software company Aqilla, said habits inside organisations often matter more than large one-off projects.

"Sustainability does not have to start with major capital investment or complex environmental strategies. In many cases, it begins with the everyday decisions businesses make about how they use resources and manage waste.

Simple steps such as extending the lifespan of equipment, reducing unnecessary packaging and properly separating recyclable materials can have a meaningful impact when adopted consistently. At Aqilla, we have embedded that thinking into how we operate. We are paperless, which not only reduces paper use but also cuts electricity consumption by removing the need for printers and copiers. For more than a decade, we have used PIR lighting in our office so lights are not left on unnecessarily during the working day. We also commit to long-life equipment rather than frequent upgrades and work only with partners that share similar sustainability commitments.

When sustainability becomes part of everyday thinking across procurement, operations and finance, it stops being a one-off initiative and becomes part of how the organisation operates. When that mindset is culturally embedded, it is far less likely to slip down the priority list when new trends or technologies capture leadership attention. World Environment Day is a good moment for business leaders to pause and reflect on whether that discipline is truly embedded in their organisations. Take the opportunity today to ask: are we treating materials and resources with the same discipline and care that we apply to financial ones?" said Hugh Scantlebury, Chief Executive Officer and Founder of Aqilla.

Attention is also turning to the role of public policy in balancing AI expansion with climate targets. Mark Skelton, Chief Technology Officer at cloud and managed services provider Node4, said ESG programmes have lost prominence as boards prioritise rapid deployment of AI systems.

"We have seen a noticeable shift in priorities around ESG initiatives over the past few years. As AI-driven growth accelerates, ESG and sustainability appear to be slipping down the agenda. Some organisations are even scaling back ESG functions in the race to deploy new technologies. But that is a mistake.

AI and sustainability are not opposing forces, and they do not have to become so. If anything, they should evolve together. The rapid expansion of compute capacity, data centres and digital infrastructure brings real environmental implications. Without clear guardrails and coordinated oversight, we risk solving one productivity challenge while creating a long-term energy problem.

This is where government leadership matters. Investment in AI must sit alongside investment in sustainable energy, grid modernisation and efficiency standards. Growth at any cost is not a strategy. Sustainable growth, underpinned by infrastructure and governance, is," said Mark Skelton, Chief Technology Officer at Node4.