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High demand for data centres makes them ripe for disruption and green industrialisation

The Straits Times

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August 28, 2025

Data centres could drive the next wave of disruption and green industrialisation as rising demand may generate considerable incentives to innovate, said panellists discussing the energy transition.

Electricity usage in data centres is set to double soon, noted Yoon Young Kim, cluster president for Singapore and Brunei at Schneider Electric, driven by the use of artificial intelligence (AI).

In April, the International Energy Agency estimated that electricity consumption at data centres made up 1.5 per cent of global demand in 2024. This number could rise to close to 3 per cent by 2030.

"The intensity of demand is quite high," said Yoon at the Sustainability Impact Dialogue jointly organised by The Business Times and UOB, adding that using AI or ChatGPT will consume 10 times more energy than normal Googling.

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