Generative AI’s environmental impact has gained attention, particularly its energy and water consumption. Factors such as model size, training intensity, and data center location influence energy usage. Excessive energy use can contribute to climate change and animal habitat loss. Some tech giants are addressing these issues through renewable energy initiatives, power purchase agreements, and improvements in data center efficiency. Water use is also a concern, with data centers requiring large amounts for cooling. IBM and Microsoft are researching innovative water-saving technologies. Despite sustainability goals, concerns remain about carbon offsets and greenwashing practices. Organizations should carefully consider the environmental impact of generative AI and implement strategies to mitigate it.