Sustainable development Archives | Page 294 of 305

Goldman Sachs warns AI may reduce oil prices by boosting supply

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 and CelcomDigi’s to revolutionise Malaysian agriculture with 5G and AI

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 partners with Sage for geothermal power in the US

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.

AI boost prompts Microsoft to reorganise

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.

Google signs energy deal with Energix Renewables

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.

Surge in data centre construction across North America

North America’s data centre construction has soared by 70% compared to last year, with a record 3.9 gigawatts now under development, according to a recent CBRE Group report. This surge reflects the increasing demand for power-intensive data centres, driven by major technology companies expanding their artificial intelligence and cloud computing operations.

In the first half of 2024, over 500 megawatts of new data centres were introduced across the eight largest markets in the United States and Canada, equivalent to the entire capacity of Silicon Valley. New data centre inventory expanded by 10% during this period, representing a 23% increase from the previous year.

As new inventory rose, vacancy rates dropped to a historic low of 2.8%, with prices for newer data centres typically higher due to their advanced infrastructure. Older centres are unable to meet the growing power demands, further driving the pricing gap.

Smaller markets such as Northern Indiana, Idaho, Arkansas, and Kansas are expected to become more attractive as demand for modern facilities continues to rise.

Europe’s digital strategy targets MENA region

The European Union is deepening its involvement in the Middle East and North Africa (MENA) region, with a particular focus on digital transformation. Ursula von der Leyen, recently re-elected as European Commission president, has outlined plans to establish a portfolio dedicated to the Mediterranean, which will address investment, partnerships, and economic stability. This initiative follows significant financial support for countries like Egypt and Lebanon, aiming to stabilise these nations and bolster EU-MENA relations through the Southern Neighbourhood partnership.

A key element of the EU’s strategy is advancing digital infrastructure across the region. Projects like the MEDUSA Submarine Cable, which aims to connect several MENA countries with high-speed internet, exemplify Europe’s commitment to digital development. With over 4.5 million students expected to benefit from increased connectivity, the EU is prioritising educational and economic growth in the region. However, significant digital divides still exist, particularly between urban and rural areas and along gender lines, underscoring the need for expanded efforts.

Europe’s digital investments are expected to yield considerable benefits, including access to a skilled ICT workforce and strengthened political influence in the region. By supporting digital transformation, the EU aims to stabilise the MENA region economically, reduce irregular migration, and counter external influences such as China’s Belt and Road Initiative. Furthermore, digital advancements are seen as crucial in enhancing climate resilience, particularly through technologies like smart grids.

To fully realise these goals, the EU must expand its digital programmes and improve coordination with Southern Neighbourhood countries. Initiatives focusing on digital skills, entrepreneurship, and infrastructure need broader implementation to ensure inclusive growth. Enhanced data analysis and reporting on digital development are also essential for effectively targeting resources and measuring progress. The EU’s commitment to integrating digital elements into its broader strategy for the Mediterranean could serve as a blueprint for future cooperation in the region.

How AI is revolutionising athletic recovery and performance

Researchers at the University of Auckland’s Sports Performance Research Institute New Zealand have used machine learning to delve into athletic recovery. They tracked 43 endurance athletes, gathering extensive data on sleep, diet, heart-rate variability, and workout routines. The study revealed that while certain factors like sleep quality and muscle soreness broadly influence recovery, the most effective predictors vary from person to person.

For instance, sleep data might be a strong indicator for one athlete, while for another, protein intake and muscle soreness could be more relevant. A simpler model using just a few variables performed nearly as well as more complex ones, emphasising that not all factors are equally important for every athlete. However, the effectiveness of predictions significantly improved when tailored to individual data.

The study also examined heart-rate variability (HRV) but found that predicting HRV changes based on controllable factors, like training load and diet, proved challenging. Although HRV is often used as a gauge for readiness to train, the researchers concluded that its predictive value might be limited.

Ultimately, the research underscores the importance of personalised recovery strategies. While broad patterns exist, the best approach to recovery seems to hinge on understanding the unique factors that impact each athlete individually.

Parents in South Korea question AI textbook program

Plans to introduce AI-powered textbooks in South Korean classrooms have sparked concerns among parents. The government aims to roll out tablets with these advanced textbooks next year, with the goal of using them across all subjects by 2028, excluding music, art, physical education, and ethics. The AI textbooks will be designed to adapt to different learning speeds, and teachers will monitor student progress through dashboards.

However, many parents are uneasy about the impact of this new technology on their children’s well-being. Over 50,000 have signed a petition urging the government to prioritise overall student health rather than focusing solely on technological advancements. They argue that excessive exposure to digital devices is already causing unprecedented issues.

One concerned parent, Lee Sun-youn, highlighted worries about the potential negative effects on children’s brain development and concentration. She pointed out that students in South Korea are already heavily reliant on smartphones and tablets, and increased screen time in classrooms could exacerbate these problems.

The government has yet to provide detailed information on how the AI textbook program will be implemented. As the rollout approaches, the debate over the balance between technology and student welfare continues to intensify.

UNCTAD Digital Economy Report 2024: Balancing digital growth and enviromental impact

The UNCTAD (UN Trade & Development) published the Digital Economy Report 2024, which highlights the urgent need for sustainable and inclusive strategies in digitalisation. As the digital economy expands, its environmental toll grows significantly, with the production and disposal of devices contributing to rising energy consumption and digital waste. Developing countries bear the brunt of these environmental costs while gaining fewer benefits, often exporting raw materials and importing digital waste, exacerbating their ecological and economic vulnerabilities.

The UNCTAD report emphasises the critical need for a global shift towards a circular digital economy. It calls for durable product designs, responsible consumption, and sustainable business models prioritising recycling and reuse. Addressing these challenges requires coordinated action from policymakers, industry leaders, and consumers to curb the environmental impact and ensure that the benefits of digitalisation are shared equitably across the globe.

The report urges international cooperation to achieve this, particularly in managing critical minerals essential for digital technologies. It highlights the importance of balancing economic opportunities with environmental and social responsibilities, ensuring that developing countries are not left behind in the digital era but are instead empowered to advance sustainably.