The development of digital technologies poses a dilemma for a sustainable future. Amid this challenge, so-called “climate tech” has garnered attention as a promising solution. (Image courtesy of Pixabay)
SEOUL, Jun. 20 (Korea Bizwire) – As the rapid advancement of artificial intelligence (A.I.) drives a surge in power consumption within data centers, the development of digital technologies poses a dilemma for a sustainable future. Amid this challenge, so-called “climate tech” has garnered attention as a promising solution.
Climate tech refers to digital technology innovations, such as software advancements, that contribute to energy efficiency and carbon neutrality. While major countries have already invested substantially in this field, South Korea’s investment and interest remain relatively modest.
According to a report by the Software Policy & Research Institute titled “Case Studies of Climate Tech and Companies Supporting Carbon Neutrality through Software,” the global climate tech industry is projected to grow from $16.9 billion in 2016 to $148 billion by 2032, based on data analysis by the International Energy Agency (IEA).
In 2022, global investment in climate tech amounted to $1.6 trillion. However, South Korea’s investment stood at only 1.5 trillion won, a mere 13.3% of the average investment of 7.9 trillion won among the top 10 countries.
As of October 2022, out of the 1,348 global unicorn companies, only 55 were related to climate tech, with 24 based in the United States, 19 in China, and six in Germany. Notably, South Korea did not have a single climate tech unicorn company.
The rapid growth of generative AI technology heightens the urgency to address climate tech. According to the IEA, the annual power consumption of data centers, which are critical for AI computations, reached 460 terawatt-hours (TWh) in 2022, comparable to the annual electricity consumption of France (425 TWh) and Germany (490 TWh).
By 2026, this figure is expected to rise to 620 TWh, and without advancements in low-power data center technologies, it could soar to 1,050 TWh.
The alarm bells are ringing louder about the climate crisis caused by human activity. The World Meteorological Organization (WMO) warns that “if we do not urgently take action to reduce greenhouse gas emissions, we will pay a heavy price.” (Image courtesy of Pixabay/CCL)
While low-power data centers are recognized as essential for the development of AI technology, South Korean data centers lag in efficiency. In 2022, the average power usage effectiveness (PUE) of private data centers in South Korea was 1.76 (with lower numbers indicating higher efficiency), exceeding the international average of 1.55.
The research institute suggests, “Carbon neutrality is necessary for the sustainable growth of the software industry, including AI, big data, and others that are emerging as key drivers of national competitiveness. This can be achieved through low-power AI semiconductors and data centers, as well as the establishment of an eco-friendly software ecosystem.”
As carbon reduction becomes an urgent priority, with Microsoft announcing plans to require major suppliers like Samsung Electronics and SK Hynix to use 100% carbon-free electricity by 2030 to meet its carbon emission targets, the South Korean government is also pursuing digital carbon neutrality as a major policy objective.
The Ministry of Science and ICT plans to invest 5.3 billion won this year to secure low-power technologies for data centers and base stations, while enhancing digital-based carbon accounting capabilities.
In addition to improving energy efficiency within the digital ecosystem itself, the ministry aims to develop energy-efficient technologies across various industries by leveraging information and communication technologies (ICT).
Following the first Digital Carbon Neutrality Public-Private Council meeting chaired by Minister of Science and ICT Lee Jong-ho in late April, which focused on “low-power base stations” with telecommunications companies and equipment providers, the ministry plans to hold a second private council meeting in late August or early September.
The next meeting will discuss the introduction of low-power data center technologies and explore overseas practices, such as implementing energy efficiency verification systems for data center servers.
Kevin Lee (kevinlee@koreabizwire.com)
