AI's Ambiguous Role: A Dilemma in Southeast Asia's Struggle Against Climate Change
The ASEAN Centre for Energy's latest White Paper, "Building Next Generation Data Center Facility in ASEAN," takes a significant step towards identifying sustainability requirements for the next wave of AI data center development in the region [1]. This timely publication comes as Southeast Asia grapples with the environmental impacts of rapidly expanding data centers, particularly in Malaysia, where energy consumption is growing significantly [2].
The surge in energy use is driven by the rise of digital services and AI workloads, which require energy-intensive hardware [4]. Currently, data centers consume between 1–1.3% of the world's electricity, a figure projected to rise to around 3–4% by 2030, largely due to AI expansion [4][5]. In Southeast Asia, data center electricity demand is expected to double by 2030, putting pressure on electrical infrastructure [2].
The environmental impact is substantial, with increased greenhouse gas emissions from data centers relying on fossil-fuel dominated grids, and stress on local resources like cooling water [3]. The rapid expansion of data infrastructure also necessitates upgrades in power grid reliability and capacity [3].
To address these issues, Southeast Asian countries are increasingly focusing on renewable energy integration and sustainable energy solutions. For instance, Malaysia's National Strategic Digital Cloud Framework (NSDCF) emphasizes renewable energy use, enabling data centers to procure clean energy through programs like the Corporate Renewable Energy Supply Scheme (CRESS) [1].
The Asia Pacific Data Centre Association has also highlighted commitments by data centers across the region to use renewable energy and modernize grid infrastructure, improving energy efficiency and deploying smart grid technologies [3]. Investment incentives, such as tax allowances for green infrastructure and partnerships with energy providers, are helping shift towards lower carbon footprints [1].
However, despite these commitments, significant challenges remain in balancing rapid data center growth with sustainable energy supply and environmental stewardship in Southeast Asia. Concrete strategies at national and regional levels are still developing, with current reliance on fossil-fuel based grids posing a notable environmental concern [2][3].
The collaboration between ASEAN and Japan, such as the Asean-Japan Resource Circulation Partnerships on E-Waste and Critical Minerals (ARCPEC), aims to promote the collection, recovery, and recycling of critical minerals from e-waste in ASEAN, reducing environmental pollution [6].
Thailand, for example, is at the forefront of e-waste circularity through its promotion of the Right to Repair movement [5]. In Thailand, the AI Nowcast system forecasts rainfall in Bangkok three hours ahead of time, while in Indonesia, AI is being used to monitor air quality in Jakarta [5].
The market size for artificial intelligence (AI) in Southeast Asia is projected to reach US$8.9 billion this year, with an annual growth rate of over 27% [7]. Over US$30 billion has been invested into the Southeast Asian AI market in the first half of 2024 [8]. AI could potentially raise the region's GDP by 10 to 18%, or an additional US$1 trillion by 2030 [9].
However, without careful consideration, AI systems may inadvertently undermine and be counterintuitive to the very climate goals they aim to achieve [10]. It is crucial to acknowledge AI's negative consequences and account for its potential contributions to the climate crisis in regulatory frameworks.
In conclusion, the rapid expansion of data centers in Southeast Asia necessitates coordinated energy planning to achieve sustainable digital infrastructure aligned with climate goals. The International Energy Agency estimates that data centres and data transmission networks each account for 1 to 1.5% of global energy consumption and are responsible for 1% of energy-related GHG emissions in 2022 [11]. Key investors in Southeast Asian AI include Apple, Google, Microsoft, and NVIDIA [2].
References: 1. ASEAN Centre for Energy 2. The Diplomat 3. Asia Pacific Data Centre Association 4. International Energy Agency 5. Fulcrum, ISEAS - Yusof Ishak Institute's blogsite 6. ASEAN-Japan Resource Circulation Partnerships on E-Waste and Critical Minerals 7. MarketWatch 8. TechCrunch 9. McKinsey & Company 10. The Verge 11. International Energy Agency
- The ASEAN Centre for Energy's White Paper advances the energy transition in AI data centers, emphasizing sustainability requirements.
- Southeast Asia's data center electricity demand is projected to double by 2030, putting pressure on electrical infrastructure and increasing greenhouse gas emissions.
- To alleviate these concerns, Southeast Asian countries are incorporating renewable energy, promoting smart grid technologies, and offering investment incentives for green infrastructure.
- The Asia Pacific Data Centre Association's members have committed to using renewable energy and improving energy efficiency, but challenges remain in achieving sustainable energy supply.
- The collaboration between ASEAN and Japan aims to promote a circular economy by recovering critical minerals from e-waste in ASEAN countries.
- Thailand is pioneering e-waste circularity through the Right to Repair movement, while AI systems in Southeast Asia are being used for forecasting rainfall and air quality monitoring.
- The Southeast Asian AI market is experiencing significant growth, with AI potentially contributing 10-18% to the region's GDP, but it must be developed carefully to avoid counterintuitive consequences for climate goals.
