A recent survey commissioned by Alibaba Cloud reveals that a significant majority of businesses—76% across Asia, Europe, and the Middle East—are exploring the potential of digital technologies, such as artificial intelligence (AI) and cloud computing, to further their sustainability objectives.
The report, titled “Tech-Driven Sustainability Trends and Index 2024,” highlights a growing interest in leveraging technological advancements to promote sustainable development.
However, a notable concern emerges: 71% of businesses, including those from Malaysia, express apprehension that the substantial energy consumption required by these digital technologies might negate their environmental benefits. This sentiment is particularly pronounced in Singapore (86%), the Philippines (84%), and Malaysia (81%).
The enthusiasm for integrating AI, cloud computing, and other advanced digital tools into sustainability strategies varies by region. Emerging Asian markets lead with an 83% interest rate, followed by the Middle East (78%), Europe (74%), and developed Asian markets (72%). Countries like the Philippines (91%), Singapore (84%), Indonesia (81%), and Thailand (81%) exhibit especially high levels of interest.
Despite this enthusiasm, 59% of businesses acknowledge a gap in understanding how digital technology can aid in achieving sustainability goals. This knowledge gap is most evident in Asia (63%), followed by Europe (61%) and the Middle East (45%).
Additionally, approximately 62% of executives feel their organisations are lagging in adopting cloud computing and AI to expedite progress toward sustainability targets. This concern is particularly acute in Singapore (80%), the Philippines (77%), Japan (75%), and Hong Kong (75%).
The survey, conducted between 10 May and 19 June 2024, gathered insights from 1,300 business leaders and senior management across various industries, including technology, finance, healthcare, transportation, retail, and manufacturing. Respondents hailed from 13 markets spanning Asia (Indonesia, Malaysia, the Philippines, Thailand, Hong Kong, Japan, Singapore, and South Korea), Europe (France, Germany, and the United Kingdom), and the Middle East (Saudi Arabia and the UAE).
In this context, developed Asian markets refer to Hong Kong, Japan, Singapore, and South Korea, while emerging Asian markets include Indonesia, Malaysia, the Philippines, and Thailand.
AI and machine learning are identified as pivotal digital technologies for advancing corporate sustainability. Businesses in the Middle East (52%) place greater emphasis on their importance compared to Europe (41%), emerging Asian markets (40%), and developed Asian markets (36%).
Moreover, 81% of businesses believe human oversight is essential in guiding the development of digital technologies, including AI tools. Support for this perspective is strongest in the Middle East (91%), followed by emerging Asian markets (83%), Europe (82%), and developed Asian markets (74%).
The report also highlights the significance of selecting technology providers that prioritise sustainability. When choosing a “green” cloud provider, approximately half of the businesses prioritise those that use renewable energy (51%), maintain energy-efficient data centres (46%), and implement carbon footprint reduction initiatives (42%).
Malaysia’s burgeoning data centre industry is attracting significant investments from global tech giants, including Amazon, Nvidia, Google, Microsoft, and ByteDance, particularly in regions like Johor. However, this rapid development poses challenges due to the substantial energy and water resources required by data centres.
To address these concerns, the Malaysian government plans to charge a premium for utilities to mitigate environmental impact and encourage the use of renewable energy. This approach aims to balance economic growth with sustainable practices, ensuring that the expansion of digital infrastructure aligns with the nation’s environmental goals.
As Malaysia strives to modernise its economy and position itself as a leader in the digital landscape, addressing the energy consumption concerns associated with AI and other digital technologies becomes crucial. By adopting sustainable practices and investing in renewable energy sources, Malaysia can harness the benefits of technological advancements while minimising their environmental footprint.
While digital technologies like AI and cloud computing offer immense potential for advancing sustainability goals, addressing the associated energy consumption challenges is essential. By prioritising energy-efficient practices and sustainable resource management, businesses can ensure that their technological advancements contribute positively to environmental objectives.
