Autodesk CEO Downplays Environmental Concerns Over Data Centers

The president and CEO of Autodesk, Andrew Anagnost, has played down concerns about the environmental impact of data centers, arguing that the benefits of digital infrastructure outweigh the potential drawbacks. Speaking on the sidelines of the Autodesk AU 2025: The Design & Make Conference, Anagnost said data facilities are increasingly being designed with sustainability in mind, particularly in regions such as the Gulf.

Data centers, which power everything from cloud storage to advanced computing, generate vast amounts of heat and require constant cooling. The cooling process demands both high levels of electricity and significant volumes of water, sparking criticism from environmental groups who warn that the facilities are straining global resources. According to the UN Environment Programme, internet users worldwide have more than doubled, with traffic now reaching 5.54 billion people. The International Energy Agency has estimated that data centers could account for more than 20 percent of the growth in global electricity demand by 2030.

Water use is also a growing issue. Figures from the World Economic Forum show that a one-megawatt data center can consume up to 25.5 million liters of water annually for cooling — equivalent to the daily water use of around 300,000 people. Critics argue this is of particular concern in the Middle East, where governments are racing to build large-scale digital infrastructure despite limited freshwater resources.

Saudi Arabia, for instance, has announced plans to launch its first large data centers in Riyadh and Dammam in early 2026. Each site is expected to have an initial capacity of up to 100 megawatts. To put that into perspective, one megawatt can supply power to roughly 300 Saudi households.

Anagnost, however, dismissed fears that such developments would overwhelm national power grids or water systems. “The power used by these centers does not have to come from the national grid,” he told Arab News. “It can be generated locally through nuclear or solar energy. These centers are increasingly designed to be self-sustaining and powered by green sources.”

On the issue of water, he added that while initial consumption is high, much of it is recycled once treated and cooled. Cooling strategies vary depending on local conditions: colder climates can take advantage of natural airflows, while in desert regions, abundant sunlight can be used to generate solar power for cooling systems.

Anagnost acknowledged the impact of data centers but described it as “trivial” compared with other industrial demands. He stressed that as more processes become digitized, data will play a crucial role in reducing inefficiencies. “Engineering and industry waste 95 percent of all data collected,” he said, noting that better use of information could lead to more efficient and sustainable production methods across multiple sectors.