With all the new AI tech arriving in the new AI data centres – what is happening to the old tech it is presumably replacing?

AI - dirty little secret or clean?

🧠 What’s Happening to the Old Tech?

Shadow in the cloud

🔄 Repurposing and Retrofitting

  • Many traditional CPU-centric server farms are being retrofitted to support GPU-heavy or heterogeneous architectures.
  • Some legacy racks are adapted for edge computing, non-AI workloads, or low-latency services that don’t require massive AI computing power.

🧹 Decommissioning and Disposal

  • Obsolete hardware—especially older CPUs and low-density racks—is being decommissioned.
  • Disposal is a growing concern: e-waste regulations are tightening, and sustainability targets mean companies must recycle or repurpose responsibly.

🏭 Secondary Markets and Resale

  • Some older servers are sold into secondary markets—used by smaller firms, educational institutions, or regions with less AI demand.
  • There’s also a niche for refurbished hardware, especially in countries where AI infrastructure is still nascent.

🧊 Cold Storage and Archival Use

  • Legacy systems are sometimes shifted to cold storage roles—archiving data that doesn’t require real-time access.
  • These setups are less power-intensive and can extend the life of older tech without compromising performance.

⚠️ Obsolescence Risk

  • The pace of AI innovation is so fast that even new data centres risk early obsolescence if they’re not designed with future workloads in mind.
  • Rack densities are climbing—from 36kW to 80kW+—and cooling systems are shifting from air to liquid, meaning older infrastructure simply can’t keep up.

🧭 A Symbolic Shift

This isn’t just about servers—it’s about sovereignty, sustainability, and the philosophy of obsolescence. The old tech isn’t just being replaced; it’s being relegated, repurposed, or ritually retired.

There’s a tech history lesson unfolding about digital mortality, and how each new AI cluster buries a generation of silicon ancestors.

Infographic: ‘New’ AI tech replacing ‘Old’ tech in data centres

🌍 The Green Cost of the AI Boom

⚡ Energy Consumption

  • AI data centres are power-hungry beasts. In 2023, they consumed around 2% of global electricity—a figure expected to rise by 80% by 2026.
  • Nvidia’s H100 GPUs, widely used for AI workloads, draw 700 watts each. With millions deployed, the cumulative demand is staggering.

💧 Water Usage

  • Cooling these high-density clusters often requires millions of litres of water annually. In drought-prone regions, this is sparking local backlash.

🧱 Material Extraction

  • AI infrastructure depends on critical minerals—lithium, cobalt, rare earths—often mined in ecologically fragile zones.
  • These supply chains are tied to geopolitical tensions and labour exploitation, especially in the Global South.

🗑️ E-Waste and Obsolescence

  • As new AI chips replace older hardware, legacy servers are decommissioned—but not always responsibly.
  • Without strict recycling protocols, this leads to mountains of e-waste, much of which ends up in landfills or exported to countries with lax regulations.

The Cloud Has a Shadow

This isn’t just about silicon—it’s about digital colonialism, resource extraction, and the invisible costs of intelligence. AI may promise smarter sustainability, but its infrastructure is anything but green unless radically reimagined.

⚡ The Energy Cost of Intelligence

🔋 Surging Power Demand

  • AI data centres are projected to drive a 165% increase in global electricity consumption by 2030, compared to 2023 levels.
  • In the U.S. alone, data centres could account for 11–12% of total power demand by 2030—up from 3–4% today.
  • A single hyperscale facility can draw 100 megawatts or more, equivalent to powering 350,000–400,000 electric vehicles annually.
AI and Energy supply

🧠 Why AI Is So Power-Hungry

  • Training large models like OpenAI Chat GPT or DeepSeek requires massive parallel processing, often using thousands of GPUs.
  • Each AI query can consume 10× the energy of a Google search, according to the International Energy Agency.
  • Power density is rising—from 162 kW per square foot today to 176 kW by 2027, meaning more heat, more cooling, and more infrastructure.

🌍 Environmental Fallout

  • Cooling systems often rely on millions of litres of water annually. For example, in Wisconsin, two AI data centres will consume 3.9 gigawatts of power, more than the state’s nuclear plant.
  • Without renewable energy sources, this surge risks locking regions into fossil fuel dependency, raising emissions and household energy costs. We are not ready for this massive increase in AI energy production.

Just how clean is green?

The Intelligence Tax

This isn’t just about tech—it’s about who pays for progress. AI promises smarter cities, medicine, and governance, but its infrastructure demands a hidden tax: on grids, ecosystems, and communities.

AI is a hungry beast, and it needs feeding. The genie is out of the bottle!

Polluting coal users and renewable producers

Coal fired power

The highest coal using countries in the world

  • China, which consumes over half of the global coal demand and produces over 4 billion tonnes of coal per year.
  • India, which consumes about 14% of the global coal demand and produces over 900 million tonnes of coal per year.
  • The United States, which consumes about 9% of the global coal demand and produces over 600 million tonnes of coal per year.
  • Japan, which consumes about 3% of the global coal demand but imports most of its coal.

These countries accounted for about 82% of the global coal production in 2021 according to 2021 data set. China alone produced more than half of the world’s coal, followed by India with nearly 10%.

Global coal use in 2023 hits few high

Global coal use in 2023 has hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in countries like India and China, said IEA. These countries are the world’s largest consumers of the dirtiest fossil fuel, and continued modernization puts their energy consumption on a rapid growth trajectory.

China

China and India’s growing economies will continue to fuel demand for coal even as they set ambitious renewable energy targets, according to experts.

While China is the world’s largest energy consumer, India is ranked third globally, and both countries are the top consumers of coal as they strive to fuel economic growth. 

China’s share of global electricity consumption, 60% of which is coal, is set to jump to one-third by 2025, compared with a quarter in 2015, according to projections by energy watchdog International Energy Agency (IEA).

Global coal usage in 2023 hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in emerging and developing countries such as India and China, IEA noted in a recent report. 

China’s electricity sector has been in the throes of a clean revolution over the past few years, with an almost five-fold growth in wind and solar generation since 2015. As a result, the share of coal generation has fallen by 17 percentage points, from 78% in 2000 to 61% in 2022. 

China has suffered from drought in recent years, which reduced hydroelectric power generation in its southern provinces. To maintain the necessary power output, the country had to turn to coal. 

United States

By contrast, U.S., which is the world’s second largest consumer of coal, has seen a decrease in its usage of the fuel. According to the Institute for Energy Economics and Financial Analysis, the amount of coal that the superpower consumes each day recorded a 62% drop from 2.8 million to 1.1 million tons a day.

75% of India’s power is derived via coal-fired plants. Coal accounts for 61% of China’s power generation, even though the country is recognized as the indisputable leader in renewable energy expansion. It has been adding new projects to the grid almost as fast as the rest of the world combined in 2022 and has ambitions of becoming carbon neutral by 2060.

Annual average capacity additions by country and region, 2016-2023

See IEA report

India’s coal production rose to 893 million tons during the financial year ending March 2023, jumping nearly 15% from a year earlier. China’s raw coal production in 2023 went up by 2.9% compared with the same period in 2022.

There are no signs of a slowdown, with the IEA saying coal consumption in India and Southeast Asia is projected to grow significantly.

Coal won’t go!

But the lack of reliability of renewables means coal has still very much been a critical fallback option for the two countries.

Top five coal producing countries in the world

  • China: 4,126.0 million tonnes
  • India: 762.0 million tonnes
  • Indonesia: 614.0 million tonnes
  • United States: 523.8 million tonnes
  • Australia: 467.1 million tonnes

Five of the Greenest energy producers in the world

  • Sweden
  • Norway
  • Denmark
  • Finland
  • Switzerland

The greenest were based on these five criteria: carbon emissions, energy transition, green society, clean innovation, and climate policy.

Top countries by renewable energy production

  • China: 2,271.9 TWh (28.2% of total electricity)
  • United States: 804.8 TWh (20.5% of total electricity)
  • Brazil: 491.9 TWh (83.3% of total electricity)
  • Canada: 433.6 TWh (66.9% of total electricity)
  • India: 303.5 TWh (24.5% of total electricity)

Note: three of the world’s worst offenders of fossil fuel use are also in the top five for energy production by renewables – China, U.S. and India.

So, are things changing slowly?

World’s richest 1% create carbon emissions equal to the poorest 66%

Carbon output

That’s a shocking headline

The world’s richest 1% of people are responsible for around the same percentage of global carbon emissions as the 5 billion people who represent the 66% poorest, according to a report published by Oxfam.

In the report he wealthiest 10% were responsible for 50% of global emissions, it found, while the bottom 50% were responsible for just 8%.

The top 1% represents 77 million people and is defined in the report as having an estimated income threshold of $140,000 per year, and an average income of $310,000.

The report states that personal consumption varies depending on factors such as location, use of renewable energy and transport where the very wealthiest contribute significantly more due to the use of private jets and yachts.

It also includes between 50% and 70% of emissions by the 1% coming through investments in companies, measured by taking firms’ reported emissions and distributing that proportionate to shareholder ownership of those firms by the 1%.

See report here.

Record number of fossil fuel lobbyists attend COP28 climate talks

Oil

A report published Tuesday by the Kick Big Polluters Out coalition found that at least 2,456 fossil fuel lobbyists registered to attend the two-week long summit. That’s more than almost every other country delegation, except for Brazil (3,081) and COP28 host the United Arab Emirates (4,409), the report said.

Supporters say the number of fossil fuel lobbyists attending the talks is ‘beyond justification’ and demonstrates that polluting industries are seeking to advance a fossil fuel agenda.

Others however say that Big Oil’s participation at COP28 should be welcomed.

Unabated

There’s also a debate about whether an agreement should centre on abated fossil fuels, which are trapped and stocked with carbon capture and storage technologies. Unabated fossil fuels are largely understood to be produced and used without substantial reductions in the amount of emitted greenhouse gases.

Delegates at the beginning of COP28 sealed a landmark deal to help the world’s most vulnerable countries pay for the impacts of climate disasters. To me, that suggests it is okay to carry on with business as usual because the industry can throw money at the poorer people suffering at the brunt end of climate effects.

Announcements at COP28 have sought to help decarbonize the energy sector, with nearly 120 governments pledging to triple renewable energy capacity by 2030, recent news reports show.

Whichever way we care to spin this, we are nowhere near ready to switch to renewables.