We use AI at Leading Hand. Who doesn’t? Our use is fairly modest – fixing image backgrounds, getting proposal copy started, helping with research and occasionally experimenting with new creative tools. Even so, every task uses energy, water and computing infrastructure somewhere. The obvious question is: how much?
If you have wondered about the environmental cost of your own AI use – or would simply like enough information to decide when it is worth using – you may be interested in an initiative we have been working on: Know Better
The idea for Know Better began while we were using a very nifty tool that stitches two static images together to create a short video. Amazing stuff. However, the longer this seemingly simple but remarkable task took, it occurred to us that it was quite likely using a significant amount of power and water. But we had no way of knowing. More importantly, there was no practical way to find out.
That question prompted a conversation with Jodi Litzenberger from Tamarack Consulting, whom we met through our B Corp certification. Together, we began looking into the environmental impact of AI and the rapid growth of the data centres that support it.
The Climate Council’s Clouded Future report brought the scale of the issue into focus. It projects that Australian data centre energy demand could triple by 2030, with water demand also expected to at least triple. In addition to this, The Australian Government had already issued five sensible expectations for data centre and AI infrastructure developers, covering the national interest, energy, water, Australian jobs and local research capability. We believe these expectations should develop into transparent, measurable and enforceable targets.This led us to prepare a submission to the Senate inquiry into artificial intelligence and data centres under the Know Better umbrella.
Since lodging our submission, the conversation has moved quickly. Prime Minister Anthony Albanese recently announced plans to introduce mandatory national standards for large AI data centres, including requirements to minimise water use, fund their own electricity infrastructure and contribute at least as much energy to the grid as they consume. Those proposals are expected to be considered by National Cabinet next month.
We see this as a positive step and a sign that governments are taking the environmental impacts of AI infrastructure seriously. However, it also raises some broader questions. The proposed standards focus largely on new infrastructure, but what about the existing data centres already supporting AI services? As AI adoption continues to accelerate, should there also be stronger expectations around storage efficiency and resource use? Even if companies pay for new water infrastructure, where will that water come from, is sufficient land available, and what are the broader biodiversity implications? These are important questions that will become increasingly relevant as Australia's AI capability continues to expand.
Our submission begins with something more immediate: the customer’s right to know. AI platforms can tell us what models we use, how many prompts we submit and what we pay. We think they should also give us reasonable estimates of the electricity, water and emissions associated with that use.
This is not a campaign against AI. We use it, value it and expect it to become a growing part of how organisations work. We simply want enough information to make informed choices and account for AI in our environmental reporting.
That is why Leading Hand and Tamarack Consulting started Know Better. What began as a question while watching a progress bar has become an initiative asking for practical transparency and a broader say in how Australia’s AI future is built.
If you'd like to learn more, contribute your perspective or explore how your organisation can better understand the environmental impacts of AI, we'd love to hear from you. After all, the best way to build a more informed future is to keep asking good questions – and to keep learning together. Follow knowbetter.au on Instagram for the latest updates.