Sustainable development

Renewable energy investment continues under Trump, MUFG Americas says

Despite the incoming administration of Donald Trump, the US shift towards renewable energy is expected to continue, according to Mitsubishi UFJ Financial Group’s (MUFG) Americas CEO, Kevin Cronin. While Trump’s policies may favour fossil fuels, Cronin emphasised that renewable energy projects, which take years to plan and build, remain integral to the bank’s strategy regardless of political changes. MUFG, Japan’s largest banking group, remains committed to financing these long-term projects.

The bank’s position has been bolstered by President Joe Biden’s Inflation Reduction Act, which supports infrastructure and renewable investments. However, the real growth opportunity now lies in the booming demand for energy from data centres, driven by AI. Data centre capacity is expected to double by 2030, making reliable energy — both renewable and fossil-based — critical for future expansion.

MUFG has maintained its lead in project finance for 14 consecutive years and is adapting to state-level variations in energy policy. Since selling its retail banking arm in 2022, MUFG has focused on wholesale banking and technology-related sectors, even hiring talent from the collapsed Silicon Valley Bank to strengthen its position. The US market remains a cornerstone of MUFG’s global profits, contributing nearly 30% of its earnings in the last fiscal year.

Senators push Biden to extend TikTok sale deadline amid legal uncertainty

Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.

The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.

The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.

Geothermal energy startups rise as tech giants seek clean power for AI

Geothermal energy is gaining momentum as Big Tech companies like Meta and Google turn to it to power their energy-hungry AI data centres. Startups such as Fervo Energy and Sage Geosystems are partnering with these firms to harness geothermal’s promise of carbon-free, reliable electricity. Unlike wind and solar, geothermal energy offers consistent power, though it faces challenges like high drilling costs and long approval timelines.

Oil and gas companies are also showing interest. Devon Energy and other mid-sized producers are investing in geothermal to meet their own energy needs. However, major oil players like Chevron and Exxon Mobil remain focused on natural gas, promoting it alongside carbon capture technology to reduce emissions.

Interest in geothermal is expanding, particularly in Texas, where abundant resources and streamlined regulations attract new projects. More than 60 geothermal startups have emerged in recent years, supported by improving investment conditions and bipartisan government initiatives like the CLEAN Act and HEATS Act. If these laws pass, they could further boost the sector by simplifying project approvals.

With geothermal’s competitive costs—averaging $64 per megawatt-hour—it may become a key part of a diverse energy mix. As AI-driven data centres grow, the demand for clean and consistent power is driving geothermal’s rise, offering a potential alternative to traditional fossil fuels.

US pressures Nvidia to investigate chip exports, according to The Information

The US Department of Commerce has asked Nvidia to investigate how its AI chips ended up in China despite ongoing export restrictions, The Information reported. In response, Nvidia has called on major distributors like Super Micro and Dell to conduct customer inspections in Southeast Asia. Nvidia chips, embedded in server products, have allegedly been smuggled to Chinese entities through various schemes, including duplicating or altering serial numbers.

Super Micro and Dell stated they strictly enforce export regulations and will terminate relationships with partners who violate these controls. Super Micro also confirmed it investigates unauthorised exports and complies with all US export laws.

These developments come as the Biden administration intensifies its crackdown on chip sales to China. Despite the broadened restrictions on high-end AI chips in 2023, Chinese institutions reportedly acquired Nvidia chips through resellers. Earlier this month, the US further limited semiconductor exports to 140 additional companies, underscoring efforts to control the flow of advanced technology to China.

US Supreme Court to hear TikTok’s bid to block ban

The US Supreme Court has agreed to review a case involving TikTok and its Chinese parent company, ByteDance, in a challenge against a law requiring the app’s sale or a ban in the US by January 19. The court will hear arguments on 10 January but has not yet decided on TikTok’s request to block the law, which it claims violates free speech rights under the First Amendment. TikTok, used by 170 million Americans, argues the law would harm its operations and user base, while US officials cite national security concerns over data access and content manipulation.

The Justice Department has labelled TikTok a significant security risk due to its Chinese ownership, while TikTok denies posing any threat and accuses lawmakers of speculation. The law, passed in April and signed by President Biden, would ban the app unless ByteDance divests its ownership. The company warns that even a temporary shutdown could damage its US market share, advertising revenue, and ability to recruit creators and staff.

The case also reflects heightened tensions between the US and China over technology and trade policies. TikTok’s fate could set a precedent for the treatment of other foreign-owned apps, raising questions about free speech and digital commerce. The Supreme Court’s decision may have far-reaching implications for the platform’s future and US-China relations.

Apple explores AI partnerships for iPhones in China

According to sources familiar with the matter, Apple is in early talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China. This comes as Apple rolls out OpenAI’s ChatGPT in other markets, but regulatory restrictions in China prevent the availability of the chatbot there. To comply with local rules and counter the declining market share, Apple is exploring partnerships with Chinese firms that already have government-approved AI models.

Potential partners include ByteDance’s Doubao and Tencent’s Hunyuan, part of a growing field of AI services in China. Although Apple previously discussed using Baidu’s Ernie model, reports suggest technical disagreements halted progress. Baidu’s shares dropped following news of these challenges, while Tencent’s stock saw a boost.

Apple faces increasing pressure in China’s competitive smartphone market, where domestic rivals like Huawei are surging ahead. Huawei’s recent AI-equipped models have attracted consumers, contributing to a 42% spike in sales. In contrast, Apple’s third-quarter sales dipped slightly, underscoring the need for a successful AI integration strategy to regain momentum in China.

US awards SK Hynix grant for AI chip facility

The US Commerce Department has finalised a $458 million grant for SK Hynix to support an advanced chip packaging plant and AI research facility in Indiana. The South Korean company, a key supplier for Nvidia, plans to invest $3.87 billion in the project, which will produce high-bandwidth memory chips used in AI systems. The government will also provide $500 million in loans as part of the deal.

The Indiana facility is expected to create 1,000 jobs and strengthen the US semiconductor supply chain. SK Hynix’s CEO, Kwak Noh-Jung, highlighted the importance of building a resilient AI chip infrastructure in the United States. This grant is part of the $39 billion program approved by Congress in 2022 to boost domestic semiconductor production.

The Commerce Department has issued grants to major chipmakers like Intel, Micron, and TSMC. With the SK Hynix deal complete, only Samsung’s $6.4 billion award remains pending. The initiative aims to bolster US leadership in semiconductor technology and reduce reliance on foreign manufacturing.

Apple criticises Meta’s requests for access to iPhone tools

Apple has accused Meta of making excessive interoperability requests that could compromise user privacy and security, intensifying the rivalry between the two tech giants. Under the European Union’s Digital Markets Act (DMA), Apple must allow competitors access to its services or face significant fines. Apple claims Meta’s 15 requests — more than any other company — could expose sensitive data like messages, emails, and passwords.

Meta, which seeks integration for products like its Quest VR headsets and smart glasses, dismissed Apple’s privacy concerns as a cover for anticompetitive practices. Apple cited Meta’s past privacy violations in Europe as a reason for caution.

Meanwhile, the European Commission has outlined measures to ensure Apple complies with the DMA, including clear timelines and feedback mechanisms for developers. A final decision on Apple’s compliance with the law is expected in March 2025.

Shaping the future of the IGF: Reflections and aspirations

At the Internet Governance Forum (IGF) 2024 in Riyadh, the session ‘Looking Back, Moving Forward’ provided a platform to reflect on the forum’s 19-year history and envision its future role. Amid preparations for the World Summit on the Information Society (WSIS) Plus 20 review and the implementation of the Global Digital Compact (GDC), participants emphasised the IGF’s continued relevance as a multistakeholder platform for global internet governance.

A legacy of dialogue and collaboration

Speakers hailed the IGF’s unique role in fostering inclusive dialogue on digital policy. Timea Suto of the International Chamber of Commerce praised its vibrant ecosystem for addressing critical internet governance issues, while Valeria Betancourt from the Association for Progressive Communications highlighted its capacity to bring diverse stakeholders together for meaningful debates.

ICANN’s Göran Marby underscored the IGF’s centrality within the WSIS framework, describing it as a space for shaping narratives and informing policy through open discussion. Juan Fernandez from the Ministry of Communications of Cuba raised a critical point about representation, urging for more consistent and diverse attendance to ensure the forum remains truly inclusive. Other participants echoed this call and highlighted the importance of engaging voices from underrepresented regions and communities.

Evolving for greater impact

As the IGF approaches its 20th anniversary, there is broad consensus on the need to evolve its structure and mandate to enhance its effectiveness. Proposals included integrating the WSIS framework and GDC implementation into its work and making the IGF a permanent institution within the UN system.

‘Strengthening the IGF’s institutional foundation is crucial for its long-term impact,’ argued Vint Cerf, a founding father of the internet.

Speakers also stressed the importance of producing tangible outcomes. Valeria Betancourt and Göran Marby called for actionable recommendations and systematic progress tracking, while Lesotho’s ICT Minister, Nthati Moorosi, suggested special forums with private sector leaders to tackle connectivity challenges. These measures, they argued, would enhance the IGF’s relevance in addressing pressing digital issues.

Inclusivity and grassroots engagement

Enhancing inclusivity remained a recurring theme. Carol Roach, MAG Chair for IGF 2024, and Christine Arida, Board Member of the Strategic Advisory to the Executive President of the National Telecom Regulatory Authority of Egypt, highlighted the need to amplify voices from the Global South and engage underserved communities.

Leveraging national and regional IGFs (NRIs) was identified as a key strategy for grassroots engagement. ‘The IGF’s strength lies in its ability to facilitate conversations that reach the margins,’ noted Valeria Betancourt.

Balancing innovation with privacy and accessibility

Emerging technologies, particularly AI, featured prominently in discussions. Participants stressed the IGF’s role in addressing the governance challenges posed by rapid innovation while safeguarding privacy and inclusivity.

‘Multistakeholder processes must move beyond handshakes to deeper collaboration,’ remarked one speaker, capturing the need for cohesive efforts in navigating the evolving digital landscape.

Looking ahead

The session concluded with a collective vision for the IGF’s future. As it approaches its 20th year, the forum is tasked with balancing its role as a space for open dialogue with the need for concrete outcomes.

Strengthened partnerships, a clearer institutional framework, and an inclusive approach will be essential in ensuring the IGF remains a cornerstone of global internet governance. The journey forward will be defined by its ability to adapt and address the complex challenges of an increasingly interconnected world.

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

African parliamentarians discuss digital transformation at IGF 2024

A networking session at IGF 2024 in Riyadh examined the vital role of African parliamentarians in shaping inclusive digital policies. Discussions revolved around creating legislation that keeps pace with technological evolution, fostering multi-stakeholder collaboration, and addressing Africa’s unique challenges in the digital age.

Participants called for stronger engagement between parliamentarians, technologists, and scientists to craft practical and forward-looking digital frameworks.

Speakers, including Catherine Mumma from Kenya and Millennium Anthony from Tanzania, underscored the need to improve digital infrastructure and internet access, particularly in rural regions. Challenges such as expensive data costs, insufficient digital skills, and a lack of dedicated parliamentary committees for science and technology were highlighted. Susan Dossi from Malawi and Daniel Molokele from Zimbabwe stressed the importance of public participation in the legislative process to ensure policies reflect citizens’ needs.

The session addressed the borderless nature of the internet and the importance of regional and global collaboration to tackle cybercrime and cross-border governance issues. Ayoban Ngao from the Democratic Republic of Congo and Lekhotsa Mafatle from Lesotho emphasised the need to update educational curricula to align with digital needs while investing in digital skills and infrastructure. Ke Gong from China contributed insights on leveraging international best practices to guide Africa’s digital transformation.

Concluding discussions focused on the critical role of parliamentarians in driving digital growth through informed policymaking. Participants advocated for greater cooperation across sectors to ensure Africa capitalises on digital opportunities while addressing its unique challenges. The session underscored a collaborative approach as key to fostering inclusive digital development across the continent.

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.