“THE best time to plant a tree was 20 years ago, and the second-best time is today.” This saying is more relevant than ever in the race to develop sustainable data centres, especially with the rapid rise of AI. This transformative technology is driving energy demand to unprecedented levels, threatening global sustainability goals.
AI mirroring energy use
The numbers tell a sobering story. The rise of AI is fueling demand for high-volume processing, with data centres projected to consume 2% of global electricity in 2025 — about 536 TWh — doubling to 1,065 TWh by 2030. Malaysia is fast becoming a heavyweight in the data centre arena, and Johor exemplifies this rapid expansion. In early 2021, the state’s data centre capacity stood at just 10MW. By 2024, this capacity has surged to over 1,500MW, according to DC Byte.
Generative AI is the driving force behind this expansion, with investment in mission-critical infrastructure expected to rise from US$125.35 billion (RM547 billion) in 2024 to US$364.62 billion by 2034. While this growth unlocks new possibilities across the world, but also raises pressing sustainability concerns, requiring a fundamental shift in how data centres source, manage, and consume energy.
What’s at stake
AI is reshaping industries and is projected to add US$15.7 trillion to the global economy by 2030. However, it’s a double-edged sword. Malaysia’s Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad has cautioned against these environmental impacts, prompting the government to adopt a more selective approach to tech investments.
Johor’s AI-driven data centres illustrate this concern, with projections of electricity demand hitting over 5,000 MW by 2035 and applications for supply already surpassing 11,000 MW — nearly 40% of Peninsular Malaysia’s power capacity. While AI increases productivity, it also intensifies power consumption, heat generation, and emissions, requiring advanced cooling solutions.
Simultaneously, data centre infrastructure management solutions integrated with AI analytical power can proactively simulate and address enterprise data centre challenges. In the face of growing global attention on sustainability, inaction is no longer an option. With Malaysia’s focus on sustainability, the industry has a clear mandate: embrace sustainability and efficiency as environmental imperatives as well as smart business strategies. The good news is there are tremendous benefits to this approach.
Six practical solutions
Above all else, a commitment to sustainability must be practical. To curb AI’s environmental impact, operators must tackle three core challenges: strengthening sustainability strategies, addressing Scope 3 emissions, and meeting regulatory demands. Here’s how:
0 Evaluate infrastructure for efficiency: Identifying inefficiencies in cooling systems, server utilisation, and energy management for significant improvements.
0 Adopt efficient infrastructure: Transitioning to modern servers, advanced cooling systems and renewable energy sources to reduce carbon footprint. Designing facilities with energy efficiency in mind and retrofitting older infrastructures can further optimize energy usage and contribute to substantial savings.
0 Collaborate with sustainable suppliers: Sustainability isn’t achievable in isolation. By collaborating with suppliers committed to decarbonising their supply chains, operators can effectively address Scope 3 emissions, the largest source of greenhouse gas emissions for businesses.
0 Leverage advanced reporting tools: Real-time monitoring enables operators to identify inefficiencies and implement corrective measures promptly, optimising energy use.
0 Leverage AI for optimisation: AI can play a significant role in efficiently allocating resources, predicting maintenance requirements, and integrating renewable energy — ultimately minimising waste and lowering emissions.
0 Continuously reassess and improve: Sustainability is an ongoing effort — regular assessments, benchmarking against industry standards, and adopting best practices will drive lasting progress.
Second best time
You can’t go back in time to plant a tree, but you can do the next best thing and plant one today. The time to rethink your sustainability agenda is now. As AI accelerates growth in the data centre industry, it is crucial to take immediate action to rein in carbon emissions. While expertise and resources may be limited, companies can collaborate with vendors offering sustainability services to craft comprehensive strategies for a greener future.
This article is contributed by Schneider Electric country president for Malaysia, Eugene Quah.
