# Southeast Asia’s AI Advancement Demands Greater Openness and Accountability

- Link: https://www.thailand-business-news.com/asean/336584-southeast-asias-ai-advancement-demands-greater-openness-and-accountability
- Published: 2026-11-03T03:00:00+07:00
- Author: Jessica Lee

Southeast Asia is rapidly embracing AI, but there is still insufficient transparency
about the environmental impact of the data centres and infrastructure that power
AI systems. Governments should require stronger reporting on energy and water consumption
to ensure AI growth aligns with climate goals

### Summary

Southeast Asians are divided on AI’s environmental impact. Survey data shows 47.9%
view it positively, 30.2% negatively, and 21.9% are uncertain. Data centers consume
growing electricity and water resources. Governments should mandate transparency
requirements and green energy policies similar to EU standards to build public trust
and ensure sustainable AI infrastructure development.

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### Key Points

• Southeast Asians are divided on AI’s environmental impact, with 47.9% viewing 
it positively, 30.2% negatively, and 21.9% uncertain, reflecting a lack of transparency
from data centres and AI companies about their energy and water demands.

• Data centre electricity consumption is projected to double from 415 terawatt-hours
in 2024 to 945 terawatt-hours by 2030, while individual AI query impacts remain 
largely undisclosed, with only Google publishing peer-unreviewed estimates.

• ASEAN governments should implement mandatory transparency policies requiring data
centres to report energy and water usage annually, similar to EU regulations, rather
than relying on individual behavioural changes to address AI’s environmental footprint.

### ASEAN Needs a Common Framework for Responsible AI Growth

As Southeast Asia accelerates its adoption of artificial intelligence, policymakers
face a growing challenge: how to harness AI’s economic potential without compromising
sustainability, transparency, and public trust.

AI is rapidly becoming a strategic priority across ASEAN. Governments are promoting
digital transformation, businesses are integrating AI into their operations, and
investment in data centres is surging across the region. Yet while discussions often
focus on innovation and competitiveness, the environmental and governance implications
of AI have received far less attention.

The issue is not AI itself, but the infrastructure that powers it.

Behind every AI application sits a vast network of data centres consuming significant
amounts of electricity and water. As demand for AI services expands, so too will
the need for computing capacity. Countries such as Malaysia, Singapore, Indonesia,
and Thailand are increasingly positioning themselves as regional digital infrastructure
hubs. Without appropriate safeguards, this growth could place considerable pressure
on energy systems and natural resources.

### Transparency Must Come First

One of the most significant obstacles facing policymakers is the lack of reliable
information.

Few technology companies publicly disclose the full environmental footprint of their
AI operations. Data on electricity consumption, water use, and emissions remain 
limited, making it difficult for governments, investors, and citizens to assess 
the true costs and benefits of AI deployment.

ASEAN should therefore prioritise the development of a regional AI transparency 
framework requiring major AI operators and data-centre providers to report key sustainability
metrics. A common reporting standard would provide comparable data across member
states while enhancing accountability and investor confidence.

### Building Sustainable AI Infrastructure

ASEAN’s digital ambitions must be supported by sustainable infrastructure policies.

Governments should encourage AI operators to increase their use of renewable energy
through incentives, power purchase agreements, and regional clean-energy trading
mechanisms. New data-centre approvals should also consider factors such as water
availability, grid capacity, climate resilience, and local environmental impacts.

Sustainable site selection is especially important as competition intensifies to
attract foreign technology investment. Economic benefits should not come at the 
expense of long-term environmental security.

### A Regional Approach to AI Governance

The environmental dimension is only one part of the challenge.

As AI systems become more influential in finance, healthcare, education, and public
administration, ASEAN will also need stronger governance mechanisms. This includes
independent audits of high-impact AI systems, environmental impact assessments for
large-scale deployments, and clear accountability structures for both public and
private sector users.

A fragmented regulatory environment risks creating uncertainty for businesses while
weakening public trust. Regional cooperation can help establish common standards
without stifling innovation.

### Investing in Green AI Innovation

ASEAN should view sustainability not as a constraint but as a competitive advantage.

The region has an opportunity to become a leader in the development of energy-efficient
AI models, advanced cooling technologies, and next-generation green computing solutions.
Strategic investments in research and development could help member states build
domestic capabilities while reducing the environmental costs of future AI growth.

Universities, research institutions, and industry partners should be encouraged 
to collaborate on technologies that make AI both more powerful and more resource-
efficient.

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### The Case for an ASEAN AI Observatory

To support evidence-based policymaking, ASEAN should consider establishing a regional
AI and Sustainability Observatory.

Such a body could monitor data-centre expansion, track environmental performance,
publish regional benchmarks, and share best practices among member states. Reliable
data would enable governments to make informed decisions while helping industry 
identify areas for improvement.

### Balancing Growth and Responsibility

Artificial intelligence will undoubtedly play a crucial role in Southeast Asia’s
future economic development. However, success should not be measured solely by investment
figures, data-centre capacity, or AI adoption rates.

The region’s long-term competitiveness will depend on whether AI growth remains 
aligned with sustainability goals, energy security, and public accountability.

For ASEAN, the objective should be clear: build an AI ecosystem that is not only
innovative and competitive, but also transparent, resilient, and environmentally
responsible. As the region races to embrace artificial intelligence, responsible
governance may prove to be its most important innovation of all.

**Source** : [Transparency Needed as Southeast Asia Pushes Ahead on AI | FULCRUM](https://fulcrum.sg/article/commentaries/transparency-needed-as-southeast-asia-pushes-ahead-on-ai/)
