As countries in the Asia-Pacific region prepare to welcome the artificial intelligence revolution, the growth of energy-intensive data centres raises concerns about the transition to clean energy. From Singapore to India, nations are eager to keep sensitive data within their borders due to geopolitical tensions. This trend will increase the demand for data centres, putting pressure on resources like land, water, and energy. The question arises: can renewable energy capacity expand quickly enough to meet this demand and achieve net-zero goals?
A recent report by Moody’s predicts that data centre capacity in the Asia-Pacific region will double by 2028. Emerging markets like India, Indonesia, Malaysia, Thailand, and the Philippines are expected to see growth rates between 29% and 48% by 2025. However, new data centres may rely on non-renewable energy sources, posing carbon transition risks in a region still heavily reliant on fossil fuels.
While some countries like Australia and Singapore have set guidelines for reducing emissions from new data centres, the intermittent nature of renewables presents challenges. Power grids in the region struggle to integrate large amounts of renewable energy. Despite these obstacles, innovative solutions like energy storage technologies and hybrid energy systems offer promise.
Countries like India, China, Japan, and Australia have been increasing their renewable energy capacity to reduce carbon emissions. Experts believe that clear targets, incentives for developers, and market mechanisms are essential for the transition to renewable energy. With abundant renewable resources like sunshine, wind, and coastlines, the region has significant potential for clean energy generation.
AI-driven technologies have the power to transform various aspects of daily life, but it is crucial to align their use with climate goals. While the expansion of energy-intensive data centres may lead to increased fossil fuel consumption, the Asia-Pacific region can seize opportunities to integrate more renewable energy sources. By setting ambitious targets and creating a favorable market environment, countries in the region can work towards a sustainable future powered by clean energy.
