Powering Progress in Asia: AI and Energy – Microsoft Source

Report on the Intersection of Artificial Intelligence, Energy, and Sustainable Development in the Asia-Pacific Region

Executive Summary

The proliferation of Artificial Intelligence (AI) presents a significant opportunity to advance several Sustainable Development Goals (SDGs), particularly those related to economic growth, clean energy, and climate action. In the Asia-Pacific region, a hub of rapid economic and digital expansion, the synergy between AI and energy is critical. The region is projected to account for two-thirds of global electricity demand growth by 2030, necessitating a strategic alignment of digital infrastructure development with sustainability principles. This report outlines key initiatives undertaken to scale clean energy, enhance resource resilience, and promote a circular economy, thereby contributing directly to the achievement of the SDGs.

Advancing SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action)

Efforts are concentrated on expanding the supply of carbon-free electricity and developing market mechanisms that support the global transition to sustainable energy. These initiatives directly address SDG 7 by increasing the share of renewable energy and SDG 13 by taking urgent action to combat climate change.

• Expansion of Clean Energy Supply: Long-term Power Purchase Agreements (PPAs) are being utilized to secure carbon-free electricity and finance new renewable capacity. Notable agreements include:
  1. A 20-year virtual PPA for 25 MW of solar energy in Japan.
  2. A rooftop solar portfolio of up to 200 MW in Singapore.
  3. A 10-year agreement supporting new geothermal capacity in New Zealand.
• Innovative Financing for Renewables: Through the Climate Innovation Fund, investments are being made to accelerate clean energy projects and unlock private capital, contributing to SDG Target 7.a. Investments in Eversource Capital have mobilized USD 2 billion and avoided 13.4 million tons of CO₂, while support for SEACEF de-risks early-stage projects in Southeast Asia.
• Policy Advocacy and Technology Leadership: Collaborative advocacy is crucial for creating regulatory environments conducive to renewable growth. In Korea, engagement with stakeholders contributed to the passage of the Special Act on Expanding the National Power Grid, which will enhance renewable integration and support SDG Target 7.b. Concurrently, AI platforms are being deployed to improve the forecast accuracy of solar and wind output, making renewable energy more reliable and efficient.

Fostering SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production)

The rapid growth of digital infrastructure necessitates a focus on sustainability and circularity. Initiatives are underway to build resilient infrastructure and promote sustainable industrialization while ensuring responsible consumption and production patterns.

• Advancing Circularity: To minimize waste from digital infrastructure, a Circular Center in Singapore has been established. This facility focuses on the reuse and recycling of decommissioned cloud computing hardware, with components repurposed for educational and manufacturing use. This directly supports SDG Target 12.5, which aims to substantially reduce waste generation.
• Sustainable Supply Chains: Investment in innovators like Cyclic Materials, which recycles rare earth magnets from electronic waste, promotes a circular economy. This reduces the environmental impact of new mining and improves the overall sustainability of technology supply chains, aligning with the principles of SDG 12.

Strengthening Community Resilience through SDG 6 (Clean Water and Sanitation)

Recognizing that water stress is a critical challenge in Asia, targeted investments are being made to enhance water resilience in communities where operations are based. These actions support the corporate goal of becoming water positive by 2030 and contribute directly to SDG 6.

• Local Water Resilience Projects: Partnerships are being formed to implement solutions that improve water access and conservation.
  1. In Malaysia, a partnership with CLEAN International is installing rainwater harvesting and filtration systems in 50 schools, benefiting 20,000 people and supporting SDG Target 6.1.
  2. In India, collaborations with FluxGen and Botanical Water Technologies are conserving millions of liters of water annually while delivering potable water to underserved communities.
  3. In Korea, a partnership with K-Water will restore a wetland, replenishing water flows equivalent to the daily needs of one million people, contributing to the protection of water-related ecosystems under SDG Target 6.6.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses several interconnected issues related to energy, technology, economic growth, and environmental sustainability, which directly align with multiple Sustainable Development Goals (SDGs). The primary focus is on the role of technology, particularly AI, in accelerating a sustainable energy transition in the Asia-Pacific region. The following SDGs are addressed:

• SDG 6: Clean Water and Sanitation – The article explicitly addresses water stress in Asia and details Microsoft’s initiatives to achieve water positivity through projects in Malaysia, India, and Korea.
• SDG 7: Affordable and Clean Energy – This is a central theme, with extensive discussion on expanding carbon-free electricity, procuring renewable energy (solar, geothermal), and using AI to improve the reliability and efficiency of clean energy systems.
• SDG 8: Decent Work and Economic Growth – The text links the expansion of carbon-free electricity and AI infrastructure to fostering economic growth, enhancing productivity, and generating new jobs.
• SDG 9: Industry, Innovation, and Infrastructure – The article highlights the boom in digital infrastructure (datacenters), the modernization of energy grids, and the application of innovative technologies like AI to create more reliable and sustainable systems.
• SDG 12: Responsible Consumption and Production – The concept of circularity is directly addressed through Microsoft’s Circular Center in Singapore, which focuses on reusing and recycling decommissioned hardware to cut down on datacenter waste.
• SDG 13: Climate Action – The overarching goal of accelerating the energy transition, procuring carbon-free electricity, and avoiding CO₂ emissions directly contributes to climate action.
• SDG 17: Partnerships for the Goals – The article repeatedly emphasizes the importance of collaboration, citing partnerships with governments, utilities, industry associations, and private companies to advance clean energy policies and sustainability projects.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the initiatives and goals described in the article, several specific SDG targets can be identified:

1. SDG 6: Clean Water and Sanitation

   • Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. The article mentions Microsoft’s goal to be “water positive by 2030” and its investments in collaborations that “conserve millions of litres annually.”
   • Target 6.b: Support and strengthen the participation of local communities in improving water and sanitation management. The partnership with CLEAN International to install rainwater harvesting in 50 schools in Malaysia, benefiting 20,000 people, is a direct example of this.

2. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article details numerous agreements to procure renewable energy, such as a 25 MW solar PPA in Japan and a 200 MW rooftop solar portfolio in Singapore, contributing to this target.
   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The use of AI platforms to “better predict solar and wind output,” leading to “improved forecast accuracy” and making energy systems “more reliable, efficient, and sustainable,” aligns with this target.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being. The article’s focus on modernizing grids and strengthening Korea’s transmission system to “enable more renewable integration” directly supports this.
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The deployment of “AI-driven grid forecasting” and “circular datacenter solutions” are examples of adopting clean and sound technologies.

4. SDG 12: Responsible Consumption and Production

   • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The work of the Circular Center in Singapore, where “decommissioned servers and cloud computing hardware is reused or recycled,” is a direct implementation of this target.

5. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. Microsoft’s advocacy work in Korea on the “Special Act on Expanding the National Power Grid” illustrates how corporate action can influence national policy to support climate goals.

6. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. The article is replete with examples, such as partnering with “governments, utilities, and industry associations,” investing in funds like Eversource Capital and SEACEF, and collaborating with organizations like K-Water and CLEAN International.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative and qualitative indicators that can be used to measure progress towards the identified targets.

• For SDG 7 (Target 7.2):
  • Total new renewable capacity installed in Asia: “over 413GW of new renewable capacity” in 2024.
  • Amount of contracted carbon-free electricity by Microsoft: “more than 34 GW” globally, with “19 GW in 2024 alone.”
  • Specific project capacities: “25 MWs of solar” in Japan, “up to 200MWs” of rooftop solar in Singapore.
• For SDG 6 (Target 6.4 & 6.b):
  • Number of beneficiaries from water projects: “20,000 people” from rainwater harvesting in 50 schools.
  • Volume of water restored/conserved: “conserve millions of litres annually” in India; a wetland to “restore water flows equal to the daily needs of one million people” in Korea.
  • Corporate commitment: A stated goal to be “water positive by 2030.”
• For SDG 13 (Target 13.2):
  • Amount of CO₂ emissions avoided: An investment in Eversource Capital has “avoided 13.4 million tons of CO₂.”
• For SDG 12 (Target 12.5):
  • Establishment of waste reduction facilities: The creation of a “Circular Center in Singapore” serves as a qualitative indicator of action towards reducing waste.
• For SDG 17 (Target 17.17):
  • Amount of capital mobilized through partnerships: An investment in Eversource Capital has “mobilised USD 2 billion.”
  • Number and type of partnerships formed: The article lists specific partnerships with Shizen Energy, EDP Renewables, Contact Energy, K-Water, CLEAN International, etc.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: news.microsoft.com