AI-Driven Data Centre Boom Poses Emission Risks for ASEAN Nations
A new report, titled "From AI to Emissions: Aligning ASEAN’s Digital Growth with Energy Transition Goals," highlights growing concerns about the rapid expansion of data centers across Southeast Asia, fuelled by the explosive development of artificial intelligence (AI) applications. This report warns against urgent intervention, as it would undermine the region's energy transition goals.
Southeast Asia is currently on the rising trend of data centres construction owing to the increasing demand for AI and digital services. From projections, data centre electricity consumption in Malaysia may escalate from 9 TWh in 2024 to 68 TWh by 2030, thereby possibly constituting almost 30% of the total electricity demand in Malaysia. The Philippines similarly expect the rise in data centre emissions from 0.8 MtCO₂e to 10.5 MtCO₂e over the same duration.
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Environmental Implications
It is therefore a cause of concern for everyone's environment. It has been estimated that up to one-third of the information and communications technology (ICT) sector is the reason for the electricity use in data centres. Most ASEAN countries have continued to depend on coal and gas consumption in their grids, and this also serves to add to the severity of the situation.
Renewable energy integration- Data centre use, 30% of electricity demand for solar and wind power will be met by these technologies by 2030. Procurement tools such as power purchase agreement (PPAs) and green tariffs are still in their infancy or lacking in some countries. The situation in Indonesia, for instance, where green tariff schemes are missing, renders an obstacle against companies' pursuits for clean power.
Policy Recommendations
This requires concentrating efforts toward solar and wind development, improving energy efficiency, and providing frameworks for supportive policies that link this type of digital growth to energy transition goals. A national framework for data centres will also be established, which will help bring stakeholders together, ensure that digital transformation takes place toward sustainable development, and keep it off the environmental issue burden.
The economic opportunities for ASEAN countries have been opened up by the advent of data centres powered by artificial intelligence; however, such prospects come hounded by threats to the environment. It is important for ASEAN to integrate renewable energy sources, bolster energy efficiency, and design friendly regulations to address such shortfalls.
