The Hidden Environmental Cost of Advanced AI Chips
4 Min Read August 5, 2025
As artificial intelligence accelerators grow more powerful to meet the demands of modern workloads, one consequence is generally accepted...
As artificial intelligence accelerators grow more powerful to meet the demands of modern workloads, one consequence is generally accepted: These chips consume enormous amounts of energy during use. But what's often overlooked is the substantial environmental footprint created long before the chip is ever powered on. What about the emissions from manufacturing these chips?
If we examine the manufacturing emissions and water usage associated with the IC portion of AMD's MI300X and NVIDIA's Blackwell, both with 192 GB of memory, it's easy to see how architecture and manufacturing location dramatically influence their environmental impact. To compare these devices, fab utilization was set at 90%, die yields were calculated using the Murphy yield model, a standard package yield of 98% was applied, and Scope 2 emissions were location-based.
Chip Complexity Drives Emissions and Water Use
The MI300X leads in complexity, containing over 40 cm² of silicon. Unsurprisingly, it also produces more carbon emissions to manufacture (Figure 1). Blackwell, requiring just under 20 cm² of silicon, produces approximately 20% less CO2e during manufacture. However, the Blackwell is almost double the carbon intensity per silicon area (kg CO2e/cm2) when compared to the MI300X.
But manufacturing emissions are only part of the story. Water consumption, a critical and often scarce resource, follows a similar pattern. Producing ICs for just one MI300X requires more than 360 gallons of water, compared to just over 310 gallons for a Blackwell. To put this into perspective, 360 gallons is enough to supply a person with drinking water for nearly three years.
Manufacturing Location Impacts
When the emissions data are broken down by scope (read the full report for details), Scope 2 is the largest contributor for both the MI300X and Blackwell, accounting for 54% and 59% of total emissions, respectively. Scope 3 emissions follow at roughly 30% for each, while Scope 1 contributes 16% and 12%, respectively. The high share of Scope 2 emissions underscores the substantial electricity requirements for manufacturing these advanced chips.
Read more on how architectural choices, such as die count, size, process node, and packaging, directly affect both carbon and water footprints, as well as how yield improvement and geography remain effective strategies for reducing emissions.
