SIEW Thinktank Roundtables: Harnessing the Potential of AI for Energy Transformation

Contributed by Lim Rui Hong, EMA

During the SIEW ThinkTank RoundTable on the AI–Energy Nexus: Transforming the Transition to Low-Carbon Power, experts explored how artificial intelligence (AI) can both accelerate and challenge the global energy transition.

The discussion underscored both the promise and the inherent challenges. While AI-driven innovation can enhance grid efficiency, reduce emissions, and drive smarter energy management, it also raises new questions about infrastructure readiness, power demand, and policy coordination.

Dr Naoko Doi, Senior Research Director, The Institute of Energy Economics Japan (IEEJ), shared that generative AI consumes nearly ten times more energy per query than a conventional search, with AI’s share of data-centre energy use projected to double to 30 percent by 2030. At the same time, technological improvements promise to enhance efficiency.

Opportunities and risks in scaling AI

As generative AI models become increasingly integrated across industries, data centres are facing unprecedented energy demands and scrutiny over their carbon footprints. A panel discussion explored how governments and industry leaders can work together to manage this growth sustainably through robust regulatory frameworks, green certifications, and targeted incentives that encourage innovation.

Panellists highlighted the need for forward-looking sustainability standards and showcased how emerging technologies—such as advanced cooling systems, AI-powered energy optimisation, and renewable energy integration—are key to reducing energy intensity.

Dr Saji Purathepparambil Kunjappan, Director of Infrastructure Operations for APMEA from Amazon Web Services (AWS), elaborated on how innovations like liquid cooling, chip optimization, and AI-based control systems can cut energy consumption and improve efficiency.

Sunil Yadav, Associate Partner at Ernst & Young, emphasised that sustainability must be embedded from the design phase, not as an afterthought. He advocated for upstream planning that integrates renewable availability, efficient construction, and operational carbon targets.

Presenting the financial industry perspective, Rakhi Anand, Head of Infrastructure at SMBC, underscored the importance of robust regulatory frameworks and sustainability-linked financing that reward verifiable carbon and efficiency performance. There’s no shortage of capital for green data centres, but strong regulatory frameworks and credible measurement are key to unlocking investment, Mr Anand added.

Role of partnerships in reshaping global energy systems

Achieving sustainable AI infrastructure requires partnerships between technology providers, policymakers, and financiers to accelerate innovation while managing environmental impact. As AI reshapes global energy systems, sustainable scaling will hinge on efficiency, innovation, and collective action. Panellists agree Singapore’s model of cross-sector collaboration offers a glimpse of how digital intelligence can power a cleaner, more resilient energy future.

Stay tuned as the conversation evolves throughout the day. Follow @SIEW_sg on Telegram and X (formerly Twitter) for the latest insights.