A recent Senate report in France has brought attention to the environmental impact of generative AI, highlighting both the challenges it presents and the opportunities it offers for France and Europe. The report, authored by the commission on territorial planning and sustainable development, focuses on concerns related to AI’s environmental footprint, such as the energy consumption of data centers, resource usage, and the reliance on low-carbon electricity. France’s electricity mix, which is 95% decarbonized, is seen as a strong advantage for hosting data centers. However, the report also raises questions about land use and public acceptance of such infrastructure. The report acknowledges that current data on AI’s environmental impact is incomplete, particularly when it comes to water usage and electricity consumption. It explains that cooling data centers can require significant amounts of water, depending on the technology used, with air-cooled systems having the highest water footprint. This is a major concern in regions already experiencing water shortages, such as parts of the United States. However, in France, water use for data centers remains minimal, reducing this particular risk. To address these concerns, the senators recommend the development of data centers in France due to its favorable electricity mix and suggest stricter regulations on water usage in other regions. They also propose the creation of a fund to encourage data centers to capture and reuse "waste heat" for heating networks. However, the feasibility of this depends on the location of the data center. The report further suggests repurposing former industrial sites for data centers and building mixed-use facilities that combine data centers with logistics companies, promoting an "AI connected to the territory." The report also calls for the inclusion of environmental impact assessments in French public procurement and the development of a European standard for evaluating AI models. Currently, there is no common methodology or transparency about the data used by AI companies, many of which are based in the United States. To address this, the report proposes an environmental rating system for AI models, similar to energy labels on household appliances. In response, the European Union has proposed a "sustainability label" for data centers starting in 2027, providing clear information on their water and energy use. This label will apply to data centers with a power capacity exceeding 500kW.