Singapore urged to lead AI sustainability amid Asia's carbon grid challenges

Asia Pacific, the US, and Canada consumed 78% of global data center electricity in 2023.

Asia Pacific’s high carbon grids highlight the need for Singapore to lead in sustainable AI initiatives, Deloitte said.

Based on its report, Deloitte noted Asia Pacific, the US and Canada accounted for 42% and 36% of global data center electricity consumption in 2023, with challenges like high carbon grid intensity in Asia Pacific significantly contributing to regional emissions.

Data centers, the backbone of AI, consumed approximately 380 TWh of electricity in 2023, representing 1.4% of global electricity use and 0.3% of global greenhouse gas emissions.

By 2050, electricity demand for AI hyperscale data centers could reach 3,550 TWh under a high-adoption scenario, accounting for 68% of total data center electricity consumption.

To address these challenges, policies like the EU Energy Efficiency Directive and Singapore’s Green Data Centre Roadmap, combined with green AI strategies such as using renewable energy and adopting efficiency metrics, are essential for reducing data center carbon footprints and promoting sustainability.

“With collective effort from the government and industry, Singapore has a unique opportunity to lead the way in sustainable AI development by prioritising renewable energy adoption, enhancing grid resilience, and establishing rigorous efficiency standards,” said Josette Soh, Deloitte Singapore sustainability & climate assurance partner.