Data Centers, Critical Minerals, Energy, and Geopolitics: The Foundations of Artificial Intelligence

Artificial Intelligence (AI) has expanded significantly in recent years, permeating various sectors of the economy and the daily lives of over 5.5 billion active internet users worldwide. However, this rapid adoption necessitates an analysis of the trade-offs inherent to its operation, many of which remain largely unknown to the public. Drawing on data from academic articles, technical reports, data repositories, and government documents, this article examines the physical, energy, and geopolitical dimensions underpinning AI. Although often perceived as immaterial, AI depends on a vast and complex physical infrastructure, sustained by data centers that house thousands of devices composed of a diverse array of minerals and metals, many classified as critical. Currently, approximately 12,000 data centers are in operation globally, including 992 hyperscale facilities spanning thousands of square meters. The short lifecycle of equipment in these centers, combined with inadequate disposal practices, leads to the loss of valuable metals from the supply chain, further intensifying mineral extraction and exacerbating socio-environmental impacts. Simultaneously, the rivalry between the United States and China over control of critical minerals and dominance in AI technologies has escalated geopolitical tensions, resulting in mutual restrictions on the export of advanced technologies and essential minerals. Another critical factor is AI’s substantial energy consumption: in the United States, data centers already account for approximately 4% of national electricity consumption, with projections reaching 9.1% by 2030. While major technology companies invest in renewable energy sources such as solar and wind to meet this growing demand, these sources also require significant volumes of critical minerals. These interrelated factors underscore the intricate connections between Artificial Intelligence, Data Centers, Critical Minerals, Energy, and Geopolitics.