Australia’s NEXTDC has announced a significant debt syndication of A$2.9 billion ($1.94 billion) to facilitate its expansion and acquisition of data centres throughout the Asia-Pacific region. This financial move aligns with the increasing global demand for greater data capacity, mainly due to the surge in AI applications.
The debt syndication follows NEXTDC’s recent capital-raising efforts, which included raising A$750 million through a share purchase plan and a placement. These new 5- and 7-year debt facilities are designed to offer better terms and optimal pricing as the company continues its ambitious growth strategy.
NEXTDC is currently developing nine data centre sites in key markets such as Malaysia, Japan, Thailand, and New Zealand, reflecting its commitment to expanding its infrastructure in response to the rapid growth of data consumption.
Visa has announced an ambitious plan to expand the acceptance of digital payments in Pakistan by ten times over the next three years. The strategy, revealed by Visa’s general manager for Pakistan, North Africa, and Levant, Leila Serhan, comes as the company partners with Pakistan’s largest payment provider, 1Link. The aim is to encourage more businesses to adopt digital payments and improve remittance flows into the country.
With a population of 240 million, Pakistan faces a significant challenge, as only 60% of its 137 million adults have bank accounts. Visa’s plan involves investing in digital payment infrastructure, making digital transactions more affordable and easier to manage for businesses, especially smaller merchants. By introducing technology that turns phones into payment devices and accepting various forms of payments such as QR codes and card taps, Visa hopes to increase the current number of point-of-sale machines.
The partnership with 1Link also focuses on enhancing the remittance process, ensuring better security and encouraging transactions through legal channels. Remittances are a vital source of foreign exchange for Pakistan, contributing significantly to its GDP. This collaboration includes allowing 1Link’s PayPak cards to be accepted on Visa’s online platform, despite the two companies being competitors.
As Pakistan implements economic reforms following a $7 billion bailout from the IMF, digital payments are set to play a key role in the government’s drive towards digitisation. Visa is committed to supporting these efforts, seeing digital payments as central to the country’s future economic growth.
Jabil, a US-based electronics components manufacturer and supplier to Apple, will establish a new manufacturing facility in Tamil Nadu, India, with an investment of approximately 20 billion rupees ($238.2 million). The plant, located near the city of Trichy, will create around 5,000 jobs, according to Tamil Nadu’s Industries Minister T R B Rajaa, who announced the deal on social media following its signing in Chicago.
Matt Crowley, Jabil’s executive vice president, emphasised India‘s growing importance as a manufacturing hub, stating that the expansion would enable the company to better serve its customers. This new facility will complement Jabil’s existing operations in Pune, located in western India.
The government of Tamil Nadu has also signed an agreement with Rockwell Automation worth 6.66 billion rupees to expand manufacturing in the state. Another agreement, with Autodesk, has been signed, though its value has not been disclosed, according to Chief Minister M K Stalin.
Tamil Nadu is rapidly becoming a preferred destination for global manufacturing, with significant investments boosting the state’s role in India’s growing industrial sector.
Huawei Cloud introduced advanced AI technologies at the Saudi Arabia 2024 Summit, aiming to accelerate the country’s digital transformation and support Vision 2030. This new infrastructure promises ultra-low latency and robust AI model training and inference capabilities, enhancing various sectors nationwide. The company is also the first cloud provider in Saudi Arabia to fully comply with local data security policies, ensuring high levels of data protection and aligning with the country’s digital sovereignty strategy.
The impact of Huawei Cloud is significant, with a tenfold increase in public cloud revenue over the past year. It serves a diverse client base, including government bodies, telecom carriers, FinTech firms, and media organisations, highlighting its role in the digital economy. Sector-specific solutions include supporting smart city projects for the government, market expansion for local e-commerce businesses like Zode, and advanced digital banking services.
Technological innovations, such as the Pangu model and CodeArts, drive industry advancements and accelerate software development. Additionally, Huawei Cloud invests in the local ecosystem by training over 3,000 university students and partnering with over 100 local businesses, fostering a thriving digital landscape in Saudi Arabia
Taiwan Semiconductor Manufacturing Company (TSMC), in collaboration with leading global chip designers and suppliers such as Broadcom and Nvidia, is focusing on developing advanced silicon photonics technology. This initiative has gained momentum due to the increasing demand for faster data transmission speeds driven by the rise of AI applications. TSMC has established a dedicated R&D team of over 200 employees to explore high-speed computing chips based on silicon photonics, with production expected to commence in the second half of next year.
TSMC’s efforts aim to solve critical challenges in energy efficiency and AI computing power, positioning silicon photonics as a transformative force in the semiconductor industry. The company also targets a range of chip processes, from 45 to 7 nm, with mass production anticipated by 2025.
The silicon photonics market is projected to grow substantially, with significant developments expected as early as 2024. TSMC’s partnerships with major customers are crucial for advancing this technology, and it is poised to revolutionise applications across CPUs, GPUs, and other computing processes. As the semiconductor industry continues to evolve, TSMC’s commitment to silicon photonics underscores its role as a leader in shaping the future of high-speed data communication and AI innovations.
AI could lower oil prices over the next decade by boosting supply and cutting costs, according to a report by Goldman Sachs. AI is expected to improve logistics and increase the amount of profitably recoverable resources, potentially reducing the marginal price incentive for oil by around $5 per barrel. This could have a negative impact on the incomes of oil-producing nations, including OPEC+ members.
While AI is expected to modestly increase oil demand, particularly in power and natural gas sectors, Goldman Sachs predicts that the cost savings enabled by AI will have a more significant effect on lowering oil prices. An estimated 25% productivity gain from AI could push prices down, outweighing the demand boost and resulting in a net negative impact on oil prices.
Goldman Sachs also forecasts that AI could reduce the cost of new shale wells by up to 30%. Furthermore, AI could increase the recovery factors of the United States‘ shale resources by 10% to 20%, potentially boosting oil reserves by 8% to 20%, or 10 to 30 billion barrels. This enhanced productivity could further contribute to downward pressure on oil prices.
Oil futures have already experienced declines, with Brent crude futures dropping by 4.5% to $74.02 per barrel, marking their lowest level since December. Meanwhile, West Texas Intermediate crude futures fell by 4.1% to $70.58, their lowest since January. As AI advances, US technology companies are also pursuing energy assets from bitcoin miners to secure power for their expanding data centres.
BoomGrow Productions and CelcomDigi Berhad have formed a strategic partnership to revolutionise Malaysia’s agricultural industry by integrating cutting-edge technologies such as 5G, AI, and extended reality (XR) into precision farming practices. That collaboration represents a significant step towards enhancing sustainable farming and boosting food production in the country. The overarching goal of the partnership is to transform traditional agricultural methods by leveraging the power of advanced technologies and setting new standards for efficient and sustainable farming practices in Malaysia.
One of the key innovations at the heart of this partnership is the implementation of 5G-Enhanced Precision Farming in BoomGrow’s Machine Farms. By utilising CelcomDigi’s reliable 5G network, supported by ZTE, BoomGrow will be able to connect sensors and monitoring systems throughout its farms.
The integration of 5G technology enables real-time data feedback, facilitating precise control over indoor farming environments and ensuring optimal conditions for crop growth. The seamless connectivity provided by CelcomDigi’s extensive network coverage in Malaysia will allow for the consolidation of data from all BoomGrow Machine Farms into a central dashboard, enabling seamless oversight and management of the farming operations.
In addition, the partnership also focuses on leveraging AI-driven analytics to optimise productivity and decision-making processes within the Machine Farms. Advanced AI algorithms will provide in-depth analysis and insights by processing complex datasets and plant visualisations from multiple farms.
Meta Platforms has partnered with Sage Geosystems to source geothermal energy for its US data centres. The agreement supports the company’s expanding AI infrastructure, which demands noteworthy power. However, the initial phase of the 150-megawatt project, expected to be operational by 2027, will significantly boost the use of geothermal energy in the United States. While the exact location remains undecided, it will be east of the Rocky Mountains.
The deal aligns with the Biden administration’s push for clean energy investments from tech giants as they face growing electricity demands driven by AI advancements. Adopting AI technologies, particularly generative AI, is fuelling a rapid increase in electricity consumption, potentially complicating efforts to decarbonise the power sector by 2035. The Sage project represents Meta’s largest foray into renewable energy, a strategic move to manage rising infrastructure costs.
Sage Geosystems, a Houston-based startup, is pioneering next-generation geothermal technology that can be deployed in more locations than traditional methods. The company, supported by oil and gas firms Chesapeake Energy and Nabors Industries, validated its technology just two years ago, marking a significant step forward in the renewable energy sector.
Meta has been aggressively upgrading and expanding its infrastructure to support AI developments, substantially increasing expenses. With capex projected to reach up to $40 billion in 2024, the company expects infrastructure costs to remain a major expense driver in the coming years.
Microsoft has revamped its financial reporting structure to better highlight the impact of its AI initiatives. The changes move search and news advertising revenue to the Azure cloud-computing division, while revenue from AI and speech technology services under the Nuance unit now falls within the productivity segment, which houses the Office suite.
The adjustment aligns with how this giant manages its business operations and offers investors clearer insights into AI’s contributions. Following the restructure, Microsoft revised its revenue growth figures for the past fiscal year and adjusted its forecast for the July-September quarter.
Investors are increasingly demanding transparency regarding returns on AI investments, particularly from major tech firms like Microsoft and Google. Microsoft has been one of the few companies to consistently break out AI-related contributions in its earnings reports, noting that AI provided a significant boost to Azure in the June quarter despite a broader slowdown.
The reorganisation has led to changes in company’s revenue expectations. The company now anticipates lower quarterly revenue for its personal computing segment and adjusted forecasts for its productivity and business processes division, reflecting the shift in business unit alignment.
Energix Renewable has entered into a long-term partnership with Alphabet’s Google to supply electricity and Renewable Energy Credits (RECs) generated from its solar project to the tech giant. Energix will initially supply 1.5 gigawatt-peak of solar project development till 2030, with a possibility of further extension.
Google will be offering Energix tax equity. As a part of the US government’s Inflation Reduction Act, corporate entities are allowed to acquire credits for supporting the development of clean energy projects like solar and wind facilities. The move also ties into Google’s long-term vision of being carbon neutral by 2030.
Why is it important?
AI’s accelerated development pushes power demand to sustain highly energy-intensive data centres. This increase in electricity needs is poised to drive up energy demand on an exceptional scale, and given the huge strides in AI development, it’s likely that computing speed will ramp up faster than improvements in electricity efficiency. Against such a backdrop, this move by Google reveals how big tech players are ramping up their efforts to ensure a seamless electricity supply by entering agreements with energy providers.
