Global banks are beginning to revive technology projects that were paused in 2023, offering renewed hope for the $254 billion Indian IT sector. The industry, which earns a significant portion of its revenue from banking, financial services, and insurance (BFSI) clients, had been experiencing reduced demand for six quarters following the Silicon Valley Bank collapse.
Recent quarterly reports from major Indian IT firms like Tata Consultancy Services, Infosys, and Wipro indicate a modest recovery in BFSI client demand. Industry leaders believe that interest rate cuts by central banks and the resolution of US election-related uncertainties could further boost client confidence and spending on technology services.
Top US banks, including JPMorgan Chase and Bank of America, have already begun increasing their technology budgets. These investments are directed towards improving regulatory compliance, enhancing customer experiences, and upgrading infrastructure through cloud migration. The focus on technology, including generative AI, highlights a shift in strategic priorities among BFSI clients, aiming to enhance operational efficiency.
However, some analysts remain cautious, noting that while the resurgence in tech spending is promising, it may be too early to declare a full recovery. Any resurgence in recession fears could dampen client sentiment and slow the momentum seen in recent months.
US Energy Secretary Jennifer Granholm has assured that the country will be able to meet the growing electricity demands driven by the rapid expansion of data centres powering AI. The Department of Energy anticipates that electricity demand will double by midcentury due to factors such as manufacturing growth, electrification of vehicles, and AI development. Despite concerns from local communities about the strain on resources, Granholm remains confident that clean energy sources will be sufficient to handle this increased demand, bolstered by significant investments under recent legislation.
Granholm highlighted the strong growth in renewable energy investments, predicting the deployment of over 60 gigawatts of clean energy and storage capacity this year alone. However, she acknowledged the immediate challenge of building transmission lines to connect data centers to these clean power sources. The Department of Energy is working to expedite the permitting process for such projects, with public and private investments playing a key role in expanding infrastructure.
The growth of AI has put many renewable energy goals to a test. Collaborations between tech giants such as Google and energy departments are emerging as a solution to meet the surging demand. For example, a recent partnership in Virginia between Iron Mountain and the state’s energy department will introduce large-scale batteries to store renewable energy for data centers. Granholm suggested that such initiatives could turn the demand from data centers into a catalyst for further investment in renewable energy.
The United States DOE is also researching ways to improve efficiency in data centers, aiming to help tech companies increase computing power while managing energy consumption. Granholm, after recent meetings with tech and utility leaders, hinted at upcoming major announcements that would reinforce America’s leadership in technology and innovation.
The Finnish tech magnate has teamed up with Swisscom to deploy a drones network across Switzerland aimed at enhancing emergency response and infrastructure inspections. The partnership will see the Finnish telecom company providing 300 unmanned aerial vehicles, operated by Swisscom through a drones-as-a-service (DaaS) network, allowing public safety agencies and other clients to use drones on demand without the need to purchase or operate them.
Swiss public safety organisations, including police and fire services, will be able to request drone flights from Swisscom Broadcast, using the technology to gather crucial data during emergencies. The network will also facilitate the remote inspection of infrastructure such as power lines, solar panels, and oil and gas facilities, reducing the need to send personnel into potentially hazardous situations, according to Thomas Eder, Nokia’s head of embedded wireless.
As drones increasingly find applications beyond military use, including in delivery services and agriculture, there remain concerns about privacy, noise, and safety. Nokia and Swisscom have pledged to work closely with aviation and spectrum regulators to ensure compliance with data protection laws, including the establishment of no-fly zones over sensitive areas like beaches and swimming pools.
Nokia’s venture into drone technology comes as the company continues to innovate, recently introducing immersive technology for phone calls and agreeing to sell its submarine networks to the French state for $374 million. The global industrial drone market is currently valued at between $32 billion and $35 billion, reflecting the growing importance of such technologies in various sectors.
The Bangko Sentral ng Pilipinas (BSP) has announced that it will lift the moratorium on new digital banking licenses starting January 1, 2025, allowing four more digital banks to operate in the country. The move comes as the BSP seeks to tap the potential of digital banks to enhance the Philippine financial system while ensuring that risks are effectively managed. Since the introduction of the Digital Banking Framework in December 2020, six digital banks have already begun operations in the Philippines, and the upcoming licenses will accommodate both new banks and conversions.
BSP Governor Eli Remolona Jr. emphasised that the central bank will closely monitor the digital banking sector as it evolves, particularly assessing the impact of new players on the banking system. The application process for these new licenses will be stringent, focusing on applicants’ value propositions, business models, and resource capabilities. Applicants must meet standard licensing criteria, including transparency of ownership, suitable shareholder composition, and strong governance and risk management frameworks.
The BSP is particularly interested in applicants who can bring innovative products and services that differentiate them from existing market players. The central bank expects these new digital banks to reach broader clientele, especially those in untapped or underserved market segments. The decision to allow more digital banks aligns with the BSP’s goals of promoting financial system stability, advancing financial inclusion, and driving digital transformation.
This development follows the BSP’s previous decision to cap digital bank licenses at six and temporarily close the application window in August 2021. The central bank has also been involved in approving a stablecoin pilot programme as part of its broader efforts to enhance the digital landscape within a regulated framework.
Beachgoers in the UK can now access the SeaCheck app for real-time updates on sea conditions at Boscombe Beach in Dorset. Created by the Bournemouth, Christchurch and Poole (BCP) Council, the app delivers details on sea temperature, wind speed, and wave height. Utilising AI, it provides the latest data to help users make informed choices about swimming, paddling, or surfing.
Currently in a pilot phase until September, the app’s effectiveness will be assessed for a potential wider release. Additionally, AI will soon be able to detect harmful bacteria levels using information from buoys near Bournemouth and Boscombe piers.
Millie Earl, leader of the BCP Council, highlighted the app’s innovation, noting its use of AI and real-time data to give the public valuable insights into sea conditions and water quality.
Why does this matter?
The innovation exemplifies how technology can be leveraged to improve public services and safety. It allows individuals to make informed decisions about activities like swimming, paddling, or surfing, potentially reducing risks associated with adverse weather or water conditions. The app’s future capability to detect harmful bacteria levels can further protect public health.
The Isle of Man, a self-governing British Crown dependency in the Irish Sea between England and Ireland, has launched a programme to upskill its residents on the use of AI. By tapping on the ‘enhanced productivity’ of the workers, the government intends to improve its GDP by 10%. Chief executive of Digital Isle of Man, Lyle Wraxell, explained how the program and a public roadshow accompanying it will help ensure that people ‘keep up with the rapidly evolving technology’.
The initiative, ‘Activate AI,’ will unfold in three stages: the first will focus on education, the second will enable the island to establish a global positioning, and the final stage will be acceleration. A new platform will launch by the end of August, providing 200 hours of complimentary training for businesses and individuals.
The programme’s applied AI service will help companies pair up with experienced firms to explore AI-driven solutions for their business challenges. Given that this facility will be provided free of cost, board member Jason Bissell highlighted how this approach will enable the creation of a partner ecosystem, allowing local businesses to experiment and understand the technology’s potential value.
Shanghai has announced a massive $13.8 billion investment to bolster its integrated circuit, biomedicine, and AI industries. The biggest city in China is making a significant push to solidify its position as a global tech leader.
The AI sector will benefit significantly, with investments directed towards intelligent chips, software, autonomous driving, and intelligent robots. The following initiative is part of Shanghai’s broader strategy to foster innovation and build a competitive edge in the global market.
Funds will support original innovation, enhancing Shanghai’s technological capabilities. This move is expected to accelerate the development of globally competitive enterprises within the city, driving growth and attracting talent.
By focusing on these key sectors, Shanghai aims to solidify its reputation as a leading commercial hub. The strategic investment underscores the city’s commitment to advancing technological innovation and economic development.
Alphabet’s Google has revealed two innovative AI systems, AlphaProof and AlphaGeometry 2, which demonstrate significant advancements in solving complex mathematical problems. These systems tackled abstract math more effectively than previous AI models, showcasing enhanced reasoning capabilities.
DeepMind, Google’s AI unit, reported that these models managed to solve four out of six questions at the 2024 International Math Olympiad. AlphaProof, which integrates the Gemini language model with the AlphaZero system, solved three problems, including the most challenging one, while AlphaGeometry 2 solved another.
These achievements mark the best performance by an AI system in the competition to date, with some problems solved in minutes and others taking up to three days. Meanwhile, Microsoft-backed OpenAI is developing a similar project known as ‘Strawberry,’ raising concerns among its staff about its potential impact on humanity.
Singapore-headquartered AI cloud provider Sustainable Metal Cloud (SMC) is set to expand globally, driven by fast-growing demand for its energy-saving technology. CEO and co-founder Tim Rosenfield announced plans to extend operations to EMEA (Europe, Middle East, and Africa) and North America in response to client demand. Currently, SMC operates “sustainable AI factories” in Australia and Singapore, with new launches planned in India and Thailand.
Partnering with AI chip giant Nvidia, SMC uses over 1,200 of Nvidia’s high-end H100 AI chips in Singapore to run open-source models like Meta’s Llama 2. Unlike most data centres that rely on air cooling technology, SMC employs immersion cooling, submerging Dell servers fitted with Nvidia GPUs in a synthetic oil called polyalphaolefin. The following method reduces energy consumption by up to 50% compared to traditional air cooling.
The International Energy Agency (IEA) anticipates a tenfold increase in AI demand compared to 2023, with global data centre electricity consumption expected to exceed 1,000 terawatt-hours by 2026. Sustainable Metal Cloud is currently raising $400 million in equity and $550 million in debt to support its expansion, according to sources. That move aligns with the increasing environmental concerns impacting Singapore’s data centre growth and highlights the importance of sustainable technology in meeting future energy demands.
According to the Central Statistics Office, Ireland’s data centres consumed more electricity last year than all its urban homes combined. These centres used 21% of the country’s electricity, a fifth more than in 2022, surpassing the 18% used by urban homes.
Experts worry this spike could hinder climate goals in Ireland and Europe. Within the Irish tech hub, Google reported a 48% rise in emissions due to its data centres, threatening its green targets. With AI advancements, data centres could use 31% of Ireland’s electricity in three years, overtaking the 28% used by all homes.
Despite the rapid growth of data centres fueled by Ireland’s low corporate taxes, the country’s heavy reliance on fossil fuels, which supply over 50% of its electricity, poses a challenge to environmental goals. Professor Paul Deane, a senior research fellow at University College Cork, highlights the need for swift renewable energy expansion, noting that while wind accounts for 34.6% of the power, solar is only at 1.2%.
Why does it matter?
The environmental impacts of data centres are already on the European Union’s radar. The European Commission recently adopted a new regulation requiring EU data centres to report key sustainability performance indicators starting in September 2024, aiming to increase transparency, enhance energy efficiency, and support climate-neutrality actions.
