Atlantic Council report examines how emerging economies can build digital infrastructure
Updated
Updated · Atlantic Council · May 4
Atlantic Council report examines how emerging economies can build digital infrastructure
2 articles · Updated · Atlantic Council · May 4
It says AI and cloud demand could push data-centre electricity use above 945 terawatt hours by 2030, shifting investment toward Southeast Asia, the Middle East, Latin America, Africa and the Black Sea region.
Case studies in Malaysia, South Africa, Brazil, Turkey and India highlight strengths such as land and renewables, but also grid weakness, volatile power prices, regulatory gaps, equipment shortages and limited skilled labour.
The report recommends single-window permitting, hybrid energy procurement, updated grid codes and local training pipelines, arguing energy and digital planning must be integrated as emerging markets become demand centres, not just overflow hubs.
With AI data centers straining global grids and resources, can renewable integration and local workforce development keep pace to ensure sustainable growth?
As tech giants race into emerging markets, will energy and workforce bottlenecks simply migrate rather than resolve, risking new crises?
Could the rapid financialization and off-balance-sheet funding of data centers trigger a systemic risk reminiscent of past tech bubbles?
Navigating Africa’s Digital Future: US-China Tech Rivalry, India’s DPI Model, and the Quest for Sovereignty (2024–2026)
Overview
China's stronghold on Africa's digital infrastructure, led by Huawei and the Digital Silk Road, has shifted financial dynamics and pushed African nations to seek more balanced partnerships. In response, the US promotes alternatives like Starlink and Google’s Project Taara, supported by significant development finance to reduce dependency. Meanwhile, India’s successful Digital Public Infrastructure model, highlighted by UPI’s massive adoption, offers a promising blueprint for Africa, though challenges like low internet penetration and gender gaps remain. Looking ahead, global cooperation through forums like the G20 and local capacity-building initiatives, including tech training and platforms like M-Pesa, are empowering Africa to navigate this complex digital rivalry with greater sovereignty and inclusion.