The Environmental Impact of AI: Transparency and Sustainability in Southeast Asia

Artificial intelligence growth in Southeast Asia is accelerating faster than public understanding of its environmental footprint, prompting calls for greater policy transparency across ASEAN member states.

Data Centre Expansion Strains Regional Power Grids

The International Energy Agency reported that global data centres consumed 415 terawatt-hours in 2024, representing about 1.5 per cent of the world’s electricity. That figure is projected to reach 945 terawatt-hours by 2030, driven largely by artificial intelligence workloads. Water demands match this energy surge. Global AI demand could require between 4.2 billion and 6.6 billion cubic metres of water in 2027.

Google published a query-level estimate stating that a median Gemini text prompt consumes 0.24 watt-hours of energy and about five drops of water. Independent peer-reviewed data on individual queries remains scarce.

Public Uncertainty Shapes Southeast Asian Climate Views

The Southeast Asia Climate Outlook 2026 Survey Report revealed a deep divide among respondents across the 11 ASEAN member states. Exactly 47.9 per cent viewed artificial intelligence as beneficial for the environment, while 30.2 per cent saw it as detrimental and 21.9 per cent remained unsure. This uncertainty stems from an information gap regarding how companies and governments disclose resource demands.

Public apprehension has already altered consumer habits. The survey found that 17.5 per cent of respondents reduced their use of artificial intelligence tools such as ChatGPT to address climate concerns. That proportion exceeds the percentage of individuals who cut meat consumption at 13.4 per cent or paid to offset carbon footprints at 11.9 per cent.

Views on the technology vary significantly by education level. Only 11.4 per cent of master’s degree holders and 11.8 per cent of doctoral degree holders considered artificial intelligence clearly good for the environment. By contrast, 38.0 per cent of respondents with no formal education shared that view.

Infrastructure Shifts From Singapore to Malaysia

Geographic concentration defines the regional impact. Singapore paused the approval of new data centres in 2019 to evaluate resource management under its climate commitments. Operators subsequently relocated facilities to Johor and Batam. Johor’s capacity expanded from 10 megawatts in 2021 to over 900 megawatts by the end of 2025, making Malaysia the fastest-growing data centre market in Southeast Asia. Data centres could account for up to 31 per cent of Malaysia’s peak electricity demand by 2035.

Individual lifestyle adjustments offer limited relief compared to large infrastructure realities. A typical household air-conditioner running for one hour consumes 700 watt-hours, matching the energy required for nearly 3,000 Gemini text prompts. The International Energy Agency expects residential air-conditioner units in Southeast Asia to multiply sixfold to 300 million by 2040.

EU Reporting Standards Inspire ASEAN Data Centre Guidelines

Public trust depends on clearer disclosures as regional governments court foreign investments for digital infrastructure. The European Union requires data centres to report their energy and water use annually. Analysts suggest ASEAN governments adopt similar reporting standards.

The ASEAN Guide for Sustainable Data Centre Development recommends energy efficiency, clean-power procurement, transparent emissions reporting, and localized cooling strategies. However, those targets remain voluntary.

Dr Sarah Chan is Chan Heng Chee Research Fellow at the Lee Kuan Yew Centre for Innovative Cities at the Singapore University of Technology and Design. Dr Samuel Chng is Research Assistant Professor at the same institution, where he leads the Urban Psychology Lab and the DesignZ Positive City Lab.

Questions regarding whether binding regulations will replace voluntary guidelines across ASEAN member states remain unresolved as digital infrastructure development accelerates.