As artificial intelligence spreads rapidly across the world, governments are beginning to confront a less discussed reality of the AI boom: its growing strain on the planet’s resources and on human well-being. Beyond flashy chatbots and automation tools, AI now raises serious questions about energy consumption, water usage, chip shortages, and long-term sustainability.
Against this backdrop, China and Indonesia are emerging as early movers in regulating AI, not to stop innovation outright, but to prevent unchecked expansion that could harm people and ecosystems.
China targets emotional AI and digital dependency
In late 2025, China’s cyber regulator released draft regulations aimed at AI systems designed to simulate human personalities and form emotional connections with users. These so-called “AI companions” have grown rapidly in popularity, but authorities are increasingly concerned about addiction, emotional dependency, and manipulative design.
Under the proposed rules, AI providers would be required to:
Warn users about excessive use
Detect signs of emotional distress or dependency
Intervene when users display extreme or risky behavior
The draft also mandates algorithm audits, strong data protection standards, and strict content controls, banning material that threatens national security or promotes violence, misinformation, or explicit content. Regulators argue that emotional AI systems should not operate without accountability simply because they exist in the digital realm.
Indonesia builds an AI roadmap grounded in sustainability
Indonesia is taking a broader, framework-based approach. The government is finalizing a presidential regulation that will establish a national AI roadmap and ethics guidelines across sectors such as healthcare, finance, education, and urban planning.
Deputy Minister Nezar Patria has emphasized that sustainability is a core principle of the policy, stating that AI development must account for its impact on humans, the environment, and all living beings. Rather than allowing AI adoption to be driven purely by commercial incentives, the roadmap aims to align innovation with long-term national priorities.
Why AI regulation is becoming an environmental issue
At first glance, emotional chatbots and national AI roadmaps may seem far removed from climate concerns. In reality, they are deeply connected.
The current AI surge relies on a vast network of energy-hungry data centers that consume enormous amounts of electricity and water. According to the International Energy Agency, data centers already produce around 180 million tonnes of CO₂ annually, and their electricity demand could more than double by 2030 if current trends continue.
AI workloads represent a rapidly growing share of that demand. Recent research suggests that AI systems alone could soon generate a carbon footprint comparable to a major global city and consume water volumes similar to all bottled water used worldwide in a year. A UN-backed study estimates global AI-related water use could reach 4.2 to 6.6 billion cubic meters by 2027, roughly equivalent to Denmark’s annual water consumption.
To put it simply, a single medium-sized data center can consume as much water annually as around 1,000 households, while large AI campuses can rival small cities.
The hidden costs: chips, devices, and e-waste
The environmental pressure does not stop with water and power. The AI boom is also contributing to a global shortage of advanced memory chips, as manufacturers prioritize high-bandwidth components for AI servers. This shift is diverting capacity away from consumer electronics, pushing up prices for smartphones, laptops, and other devices.
Industry analysts warn that this AI-driven supply squeeze could persist well into 2027. For consumers, the impact may first appear as higher device costs, followed later by increased electronic waste as hardware becomes obsolete more quickly.
A different vision for AI’s role in society
Indonesia’s warning that humans must not become “enslaved” by technology reflects a growing concern that AI should serve social goals, not dominate them. The country’s roadmap seeks to channel AI into areas such as food security, smart cities, healthcare, and climate adaptation—applications that could reduce emissions and improve resilience rather than simply maximize engagement or screen time.
China’s proposed restrictions address a different but related risk: emotional manipulation. AI companions that are always available and endlessly patient can foster unhealthy dependence, particularly during vulnerable moments. Regulators want to prevent AI systems from exploiting human psychology purely for profit.
AI is physical, not abstract
Together, China and Indonesia’s policies highlight a shared recognition that AI is not an invisible cloud. It is a physical industry that draws heavily on power grids, water supplies, rare minerals, and human attention. Without clear guardrails, AI could quietly intensify environmental stress while reshaping society in unintended ways.
Experts increasingly argue that transparency, environmental benchmarks, and accountability will be essential if AI is to support climate solutions rather than deepen existing problems.
The bigger question
As governments race to regulate artificial intelligence, a fundamental choice is taking shape: Should AI drain resources and amplify consumption, or should it help societies conserve energy, protect ecosystems, and keep humans firmly in control?
China and Indonesia are among the first countries to begin answering that question through law. Others are likely to follow.