Asia Energy Security and AI: Energy Meets Compute: Supercycle Recharges

Research evidence excerpt

Asia Energy Security and AI: Energy Meets Compute: Supercycle Recharges

ate with tighter energy markets fuel, energy storage and natural gas. The 'Powering AI' theme

and given the need for higher returns to attract investments. will drive a new investment cycle in energy systems, particu-

larly storage, coal plants and grid flexibility, as exponential AI

Industry View Energy security a must-have for all. Energy is infrastructure growth collides with physical-world limita-

India Oil & Gas | the lifeblood of modern economies and secu- tions.

Asia Pacific rity is critical to the future of energy, as there 2. The return of coal to secure AI's need for energy, and an

In-Line is no energy transition or AI without security. inflection in natural gas adoption with new infrastructure

Asia consumes as much energy as rest of the investments and fuel refinery investments making a come-

world combined but only produces a third of it at home, making depend- back. Asia holds massive coal reserves, estimated at nearly

able energy investments essential as cross-border energy flows three-fifths of the world's total, which should help slow LNG

become more fragile and less reliable. Asia's energy investments have import needs ( Exhibit 19 ).

been stagnant, but consumption has risen 50% in the past decade, even 3. Diversification of energy sourcing to the US, LatAm and

as investments in traditional energy supply chains fell to their lowest internally within Asia for natural gas and coal; shipbuilding

levels ever and are now below data center investments, which need and investments in new tankers rise to cycle highs after a

energy to power them. The lopsided investment profile should rebal- decade of underinvestment.

ance in the coming years as energy access and affordability become 4.