The rapid expansion of generative AI (GenAI) is creating an environmental crisis, driven by the massive, opaque infrastructure of data centers. These facilities consume staggering amounts of electricity and fresh water for cooling, accelerating water shortages in drought-prone regions and driving a surge in overall energy demand. This massive demand contradicts claims of AI efficiency, leading to the revival and long-term expansion of fossil fuel infrastructure to support the grid. Furthermore, rising energy costs are being subsidized by ordinary Americans, whose utility bills are increasing because of incentives offered to trillion-dollar AI corporations. A critical problem is the near-total lack of mandatory public reporting on energy and water consumption by the major AI companies, making genuine environmental impact assessment impossible. The chapter concludes that the most important, unanswered question is whether AI’s societal benefits truly outweigh its profound and accelerating costs to the planet and taxpayers.