Coal powers Asia's AI boom as clean energy lags behind

Asia’s rapid expansion in artificial intelligence is fueling a surge in electricity demand, but much of that power comes from coal, the region’s most abundant and cheapest energy source. According to estimates, Asia holds nearly three-fifths of the world’s known coal reserves. Coal is less vulnerable to global supply disruptions than imported oil and gas, making it a go-to fuel for data centers and AI infrastructure. However, it is also a major source of pollution and carbon emissions. The tension between AI growth and clean energy is stark. “AI demand is materialising faster than clean energy generation can be commissioned,” said Alexander Kheder, a market research analyst at BMI. His comment highlights a key challenge: renewable energy projects take years to build, while AI’s power needs are growing rapidly now. Many technology companies have pledged to use renewable energy, but in practice, they often rely on coal power when renewables are unavailable. This reliance threatens climate goals. Countries like China, India, and Indonesia are particularly dependent on coal for AI development. Experts say that without faster deployment of solar, wind, and battery storage, coal will remain the default power source for AI in Asia. The situation underscores the difficulty of balancing technological progress with environmental sustainability.