Research from the University of California, Riverside, reveals that it takes some 0.519 liters of water to compose a 100-word email using generative AI, with this water primarily used to cool the massive data centers powering these AI systems. The surge in data centers around the world is therefore expected to put pressure on power grids and water resources in many economies.

Vietnam currently hosts a few dozen small-scale data centers with a total national output of 182 MW, which is far below the 870 MW target set for 2030. However, the sector is quickly picking up pace, with multi-billion-dollar investments from global tech giants like Amazon, Microsoft, and Alphabet as well as local companies, according to a study by RMIT University Vietnam.

In addition, increasing AI adoption among Vietnam’s large tech-savvy population is contributing to even greater global demand, driving more data center construction in nearby countries like Singapore and Malaysia. “The solution is certainly not to abandon AI technology, which offers genuine productivity benefits, but to use it mindfully,” said Dr. Scott McDonald, a Lecturer in Logistics and Supply Chain Management at RMIT University Vietnam.

Efforts to protect the environment

According to the National Power Development Plan VIII (PDP8), overall electricity demand in Vietnam is expected to increase by about 10-12 per cent annually from now to 2030. In particular, digital technologies account for an increasingly significant portion, the RMIT study noted.

This will pose a challenge as more large-scale local data centers come online, since Vietnam already experiences periodic power shortages, especially during the summer months. Hydroelectric dams, which generate about 28 per cent of the country’s power, are increasingly vulnerable to drought conditions exacerbated by worsening climate change. With coal generating half of Vietnam’s electricity, and another 15 per cent capacity expansion underway, the country’s carbon emissions from coal-fired electricity production will continue rising due to increased energy consumption driven by AI. Accordingly, tech companies are working on solutions. Major providers are investing in more efficient data centers and exploring alternative cooling methods that use less water.

With commitments to sustainable AI development, as part of Amazon’s Climate Pledge to reach net-zero carbon emissions by 2040, Amazon Web Services (AWS) is supporting efforts on a global scale. First, next-generation data centers are designed to be less carbon-intensive, delivering 12 per cent more computer power while reducing mechanical energy consumption by up to 46 per cent through efficient cooling systems optimized for AI workloads. Second, purpose-built infrastructure, including custom-designed chips, servers, and racks, continuously improves efficiency. Finally, AWS is investing significantly in carbon-free energy across the region, supporting over 600 global solar and wind projects.

“Water efficiency is crucial to our operations,” said Mr. Eric Yeo, Country General Manager of AWS Vietnam. “AWS data centers globally use on average less than 0.19 liters of water to cool 1 kWh of IT load, significantly below the industry average of 1.8 liters. We are committed to becoming water positive by 2030, implementing innovative solutions across our facilities.”

Microsoft has also set ambitious goals to become carbon negative by 2030, removing more carbon from the atmosphere than it emits. The company is advancing AI while staying committed to sustainability; a balance that is especially relevant for fast-growing digital economies like Vietnam. Microsoft’s strategy includes investing in AI for sustainability, minimizing resource use, and building inclusive infrastructure. It will continue to monitor emissions, accelerate progress, and increase the use of carbon-free energy to power its data centers, through purchasing renewable energy and other efforts, to meet its sustainability goals of being carbon negative and water positive with zero waste by 2030.

Ms. Nguyen Quynh Tram, Managing Director of Microsoft Vietnam, said AI will be a powerful tool for advancing sustainability solutions but requires a plentiful carbon-free energy supply globally to power the new technology and its increased consumption demand. “We see AI as a tool that, when developed responsibly, can help solve some of the world’s most pressing environmental challenges,” she added. “We view the environmental implications of AI not as a barrier, but as a call to action. By embedding sustainability into every layer of our AI infrastructure and operations, we are working to ensure that the benefits of AI can be realized without compromising the health of our planet.”

A notable example in Vietnam is Viettel’s 30 MW data center at Hanoi’s Hoa Lac High-Tech Park, which boasts the use of green technologies that provide 30 per cent of its energy needs as renewables. “We need a digital sustainability movement in Vietnam that recognizes the hidden environmental costs,” said Dr. McDonald. “Just as we became conscious about plastic waste and air pollution, we also need awareness about our digital footprint to maintain Vietnam’s commitment towards net-zero emissions by 2050.”

Similarly, according to Mr. Nguyen Vu Anh, CEO of Coc Coc, the environmental impact is a valid concern as AI becomes more deeply embedded in daily life. While AI models are being optimized to reduce computing loads, the overall demand for AI-powered services is rising rapidly, which means energy and resource consumption will continue to grow. All major tech players globally are already investing in renewables, and even nuclear, to future-proof their operations.

“However, we can’t solve this by making models slightly more efficient alone,” he believes. “What’s needed is a long-term commitment to expanding clean energy infrastructure. If digital transformation is our path forward, then renewable energy must be part of the foundation. Vietnam, like many other countries, must plan AI development in parallel with sustainable energy investment.”

Suggestions for the government 

According to Coc Coc’s observation, the growth of AI and digital infrastructure must accompany the expansion of clean energy. As electricity demand surges, especially from data centers and AI-powered services, the pressure on national energy systems will intensify. For Vietnam, this presents both a challenge and an opportunity.

Mr. Vu Anh noted that the country is still in the early stages of data center expansion, which means there is a chance to build smart from the start, prioritizing energy-efficient design, green certifications, and renewable energy integration. “If we align digital growth with sustainable energy policy, Vietnam can leapfrog, not just catch up,” he added. “The core idea remains unchanged: Vietnam needs to accelerate the development of clean and renewable energy. That’s the foundation for any sustainable digital transformation. In parallel, the country should encourage the use of energy-efficient AI models that are optimized for performance without requiring massive computing power.”

Meanwhile, the adoption of Gen AI is rapidly expanding, reaching an ever-growing number of industries and users worldwide, including in Vietnam. With the increasing complexity and scale of Gen AI models, Mr. Yeo said it is crucial to work towards minimizing their environmental impact. “This involves a continuous effort focused on energy reduction and efficiency, achieving the maximum benefit from the resources provisioned while minimizing the total resources required,” he added.

On the other hand, to develop AI while meeting energy and sustainability goals, Ms. Tram said Vietnam should focus on integrating renewable energy into its digital infrastructure. Powering data centers with solar, wind, or hydro energy would help reduce emissions and support the country’s growing electricity demand. “Encouraging energy-efficient AI development is also key,” she went on. “This includes promoting low-power hardware, optimizing data center design, and supporting AI models that require less computational power. Additionally, Vietnam can use AI to support sustainability directly, such as optimizing energy grids, forecasting renewable output, and managing urban systems. Investing in education and research on sustainable AI will ensure long-term growth that’s both innovative and environmentally responsible.”