This report “From AI to emissions: Aligning ASEAN’s digital growth with energy transition goals” by EMBER concludes that ASEAN’s data centre industry is expanding rapidly, driven by global digitalisation trends like cloud computing and generative AI. This growth, while critical for the region’s digital economy, is fuelling a sharp rise in electricity demand and greenhouse gas emissions due to heavy reliance on fossil fuel-based grids. This poses a significant threat to ASEAN’s energy transition agenda, risking setbacks of power sector decarbonisation. Governments should place the issue of sustainability, especially the energy transition, at the forefront of efforts to achieve a digital leap and transform national economies. Affordable and emissions-free electricity must not be compromised by unplanned data centre demand that could undermine energy transition goals.
To mitigate these risks, solar and wind power adoption and energy efficiency must be prioritised. However, the current renewable energy targets and renewables procurement mechanisms across the region remain insufficient. Governments and industry players should work together to accelerate the deployment of renewable energy sources, such as solar and wind, to curb rising emissions from data centre power consumption.
Additionally, integrating energy efficiency measures from the design phase can significantly reduce the amount of solar, wind and battery storage required for operations. This calls for strong awareness and commitment from both governments and industry to set clear energy efficiency goals from the outset. National frameworks, complemented by targeted incentives, are essential for guiding sustainable data centre development, addressing country-specific energy transition risks and improving data transparency. Stronger government-industry collaboration should be nurtured to ensure the region’s data centres become not only digital enablers but also leaders in the energy transition.
Access the report here
