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Asia relies on coal to power AI infrastructure expansion
The report says AI demand is emerging faster than clean energy can be commissioned, leaving coal as a near-term backup for data centers.
Asia’s AI buildout is increasingly powered by coal, which the report describes as a cheaper, more reliable energy source than imported oil and gas. It also says coal is viewed as less exposed to disruptions from foreign wars, even as it remains highly polluting.
The piece attributes the shift to the need for steady, round-the-clock electricity to run data centers supporting artificial intelligence. Market research analyst Alexander Kheder, cited by the outlet, said AI demand is materialising faster than clean energy generation can be commissioned.
According to SCMP Economy, solar and wind progress has not yet closed that gap, especially for baseload power needs. The report also highlights concerns from residents about added strain on local utilities as AI infrastructure and related power demand grow.