The Invisible Environmental Damage of the Digital World

When it comes to the climate crisis, most people immediately think of carbon dioxide (CO₂). The general public perception is that if CO₂ emissions were to end, the climate crisis would be solved. But is that really the case?

There are many types of gases, called greenhouse gases, that trap heat in the atmosphere. CO₂ is not the only gas with a greenhouse effect. The digital world in which we live, and in which we will increasingly live, bears major responsibility for the emissions of CO₂ and several other greenhouse gases.

For some readers, this article may come across as a reiteration of what they already know. Yet, they are not the target audience here. The target is those who believe that the digital world is a spotless activity.

Today, when we look at the supply chains behind digital life, we encounter a very dirty picture. From the data centers essential for artificial intelligence to chip production, from smartphones to computers, everything triggers massive “resource” consumption.

It is not a “low-carbon” but a “low-resource” future understanding that must come to the forefront.

The Hidden Resource Consumption of Digital Production

On average, producing a smartphone requires 70 different metals. Extracting lithium (Li), cobalt (Co), and rare earth elements causes massive environmental damage. Producing one ton of rare earth elements pollutes 200 tons of water. Behind our seemingly small devices lie giant mines.

Data centers used for artificial intelligence applications have reached massive scales in terms of energy and water consumption. In 2022, global data center electricity consumption reached approximately 460 terawatt-hours. This amount is close to the United Kingdom’s total electricity consumption. It is not only energy. Water consumption is also a serious problem.

A 2020 study reported that large U.S. data centers could consume up to 100 billion liters of water annually. By 2023, this figure reached 283.9 billion liters. To put this into perspective, it equals London’s total water consumption over four months.

Vendors of final products, in fierce competition, constantly strive to improve performance. This forces suppliers to continuously increase performance as well. The chip industry is being pushed to develop ever smaller nanometer-scale transistors.

A micrometer is one-thousandth of a millimeter. In other words, about the thickness of a human hair. A nanometer is one-thousandth of that.

As objects get smaller, the energy consumption of the machines used to produce them increases. There is an inverse relationship between the size of objects and the energy required for their production. Smaller, lighter, and more complex devices are manufactured at higher energy costs.

Today, the computer inside any smartphone is 100 times more powerful than the best computers of 30 years ago.

Data centers and the entire digital world demand power, speed, and a cool environment. In other words, a constantly growing demand for energy and resources.

The Silent Threat of Fluorinated Gases

Fluorinated gases, used in semiconductor manufacturing, in the climate control of buildings and vehicles, and in the cooling of data centers, are far more dangerous to the atmosphere than CO₂.

According to the latest data I could find, the share of fluorinated gases in global emissions was as low as 2% in 2020. Yet the damage they cause to the environment is extremely severe. And it seems daily life gives us plenty of evidence to believe that their share of total emissions will grow. One study estimates their share will reach around 10% by 2050.

Methane (CH₄), nitrous oxide (N₂O), and fluorinated gases have much stronger effects than CO₂. Nevertheless, measurements mostly focus only on CO₂.

Nitrogen trifluoride (NF₃) traps 17,000 times more heat in the atmosphere than CO₂. Sulfur hexafluoride (SF₆) has a greenhouse effect 23,500 times stronger.

Another danger of fluorinated gases is that they do not break down easily in nature. NF₃ remains in the atmosphere for 740 years, SF₆ for 3,200 years, and CF₄ (carbon tetrafluoride) for 50,000 years.

Between 15–40% of emitted CO₂ remains in the atmosphere even after 1,000 years. The state of the oceans, which play a vital role in absorbing CO₂, is also far from encouraging.

Due to climate change, warming and acidifying oceans are losing their capacity to absorb CO₂. Under the umbrella of the United Nations, a meeting was held in June 2025 to address the condition of the oceans.

Solution: Toward a “Low-Resource” Future

The bulk of a smartphone’s carbon footprint occurs during production. Research shows this share can reach up to 80%.

The latest data I could access states that in 2022, 5.3 billion phones were discarded worldwide. Most of these devices are not recycled.

Every time we click on our computer or buy a new phone, we trigger serious energy and resource consumption.

It may look like we only hold a phone or a computer. But on the unseen side, there is massive energy, water, and mineral consumption.

For many people, the idea that the digital world is environmentally friendly may stem from the lack of visible black smoke. Yet behind the scenes, there is indeed black smoke because global energy production still relies heavily on fossil fuels.

There are many steps to be taken at both political and individual levels. Unfortunately, neither front gives much hope. Yet, policies must expand, and greenhouse gases beyond carbon must be included in climate strategies. Data centers must run on renewable energy instead of fossil fuels. However, the pace of artificial intelligence and other digital developments is far ahead of the pace at which renewable energy capacity can be built. Recycling rates in phone and computer manufacturing must increase.

Environmental policies must now account not only for “carbon” but also for the footprint of all resources consumed.

The illusion in public opinion that the digital world is clean only deepens the climate crisis. The hidden resource consumption and greenhouse gas emissions are a serious threat to the planet. To find realistic solutions, we must take these invisible costs into account. There is no way back from where we stand. In this case, we must use technology correctly. We must see the environmental cost of digital life.

What part of this is economics? Every part of it. If quartz is mined in South Africa, silicon wafers are produced in Japan, photolithography equipment is made in the Netherlands, vacuum pumps are manufactured in Austria, and their bearings in Germany, if the chips are packaged in Vietnam, and if all these components are finally shipped to China to assemble an iPhone, then this involves supply chain management, today’s buzzword tariffs, and cost accounting. If we use artificial intelligence in supply chain management and cost accounting, then in fighting the climate crisis we have become like a cat chasing its own tail. Or like a circular reference in Excel.

The next article will be about how cost accounting can be used in the fight against climate change.

Even while writing this article, the devices and data centers I used consumed about 0.1 kWh of energy and 0.2 liters of water, the equivalent of keeping a LED bulb on for one hour.