The rapid adoption of artificial intelligence (AI) is reshaping industries and economies worldwide, but it also presents significant challenges – particularly in terms of infrastructure and energy consumption. The vast computational power required for AI workloads demands substantial data centre capacity, which in turn places immense pressure on national power grids and contributes to escalating carbon emissions.
AI-driven applications – from large language models, such as ChatGPT, to autonomous systems – require immense computing power. Training a single advanced AI model can consume as much energy as hundreds of homes use in a year. As AI adoption accelerates, the question becomes: how can countries design and build data centres that not only support AI workloads but also leverage renewable energy in a way that contributes power back into the grid? The answer lies in a mix of innovative technologies, government incentives, and industry collaboration.
Asia-Pacific nations must take a proactive approach to data centre infrastructure, ensuring that AI workloads are powered by clean, efficient energy sources.
For the Asia-Pacific – home to some of the world’s fastest-growing digital economies – this need is particularly pressing. The region is already grappling with increasing energy demands driven by urbanisation, digital transformation, and industrial growth. The addition of AI-driven computing loads further exacerbates the strain on national grids, which in many cases still rely on fossil fuels. Without intervention, AI’s energy demands could pose sustainability risks, drive up operational costs, and hinder environmental commitments.
To mitigate these challenges, Asia-Pacific nations must take a proactive approach to data centre infrastructure, ensuring that AI workloads are powered by clean, efficient energy sources.
Three strategies can help:
1. Investing in renewable energy-powered data centres
A critical step towards sustainable AI adoption is powering data centres with renewable energy sources such as solar, wind, and hydroelectric power. Countries such as Australia, Singapore, and Japan are already making strides in this area.
Australia benefits from abundant solar and wind resources, with data centre operators increasingly investing in renewable power purchase agreements (PPAs) to drive sustainability. For instance, global digital infrastructure company Equinix has secured 151 MW of Australian renewable energy through a PPA signed with clean energy firm TagEnergy.
Singapore, despite its land constraints, is exploring offshore solar farms and regional energy imports to meet data centre demands while reducing its carbon footprint. Equinix initiated a PPA with local utility operator Sembcorp, which will see the offtake from a 75 megawatt-peak (MWp) solar energy project.
Japan is leveraging hydropower and geothermal energy to support its growing data centre sector, particularly in areas such as Hokkaido. The Japanese government announced the “Green Growth Strategy” in 2020 to achieve carbon neutrality by 2050, requiring data centres to use renewable energy for a portion of their energy requirements.
By integrating these energy sources into AI-driven facilities, countries can significantly reduce the environmental impact of their growing digital economies.
2. Smart grid integration and energy recycling
The next step is designing data centres that not only consume power efficiently but also contribute excess energy back to the grid. This concept, often referred to as grid-interactive data centres, is gaining traction in global markets.
Waste heat recovery is a key approach, as AI-driven data centres generate significant heat. By implementing heat recovery systems, excess heat can be redirected to surrounding infrastructure such as district heating systems for residential and commercial buildings.
Battery storage and load balancing is another essential solution. AI operations often require fluctuating power loads. By integrating advanced battery storage and smart grid solutions, data centres can stabilise energy demand while feeding stored renewable power back into the grid during peak hours.
Hydrogen as a storage medium is also being explored. Some data centres are experimenting with green hydrogen production, using surplus renewable energy to generate hydrogen, which can be stored and later converted back into electricity.
3. Government and industry collaboration
Regulatory frameworks and incentives will be key in driving sustainable AI adoption across the Asia-Pacific. Governments can play a critical role by offering tax incentives and subsidies for companies that invest in renewable-powered data centres.
Setting clear sustainability targets for the digital infrastructure sector is another vital step. Governments must encourage businesses to transition to renewable energy sources and ensure environmental impact assessments are integrated into infrastructure planning.
Facilitating cross-border energy collaboration, such as the proposed ASEAN power grid, will ensure data centres can access renewable energy even in regions with limited local production. By integrating national grids across the region, AI-driven infrastructure can rely on clean energy sources without overburdening any single country’s supply.
Meanwhile, private sector collaboration is equally important. Tech giants such as Google, Microsoft, and AWS are already committing to carbon-free cloud computing, and regional data centre operators can follow suit by adopting similar energy efficiency and sustainability goals.
The road ahead: Balancing AI growth and sustainability
AI adoption is not slowing down – if anything, its integration into enterprise and government operations will only accelerate. As Asia-Pacific nations continue their digital transformation journeys, sustainable infrastructure must be prioritised to ensure AI innovation does not come at the cost of environmental stability.
By embracing renewable energy, designing data centres that contribute back to the grid, and fostering government-industry collaboration, the Asia-Pacific can position itself as a global leader in both AI innovation and sustainability. The challenge is significant, but with the right strategies, the region can achieve a future where AI and clean energy work in harmony, driving progress without compromising the planet.
