Key Takeaways
- The Global South is at risk of being left behind in the AI revolution due to lack of access to affordable, reliable, and clean electricity.
- The region is becoming increasingly data-rich, but remains infrastructure-poor, with limited domestic data-processing infrastructure.
- Investing in flexible, digitalized, and renewable-ready grids can create a competitive advantage for the Global South.
- The economics of renewable energy and flexible grid architectures make it possible to power AI infrastructure while strengthening energy security.
- Skilled human capital is essential for building and operating future-ready grids and data centers.
Introduction to the Global South’s AI Conundrum
The global conversation on artificial intelligence is shifting beyond the advanced economies, with the UN Secretary-General’s Tech Envoy highlighting the rapid evolution of AI governance. However, the benefits of AI are accruing unevenly, with the Global North and China capturing outsized economic and technological gains. The Global South, home to over 70% of the world’s population, risks being left behind due to a central constraint: access to affordable, reliable, and clean electricity. As the UN Secretary-General’s Tech Envoy noted, "the geography of AI governance is evolving," and it is crucial for the Global South to be a part of this evolution.
The Paradox of a Data-Rich, Infrastructure-Poor Global South
The Global South is becoming increasingly data-rich, with the rapid expansion of mobile connectivity and new subsea cable projects. However, this explosion of data has not translated into local value creation, with limited domestic data-processing infrastructure. As a result, much of the data is exported to foreign data centers for storage and analysis. The Global South accounts for roughly 50% of the world’s internet users, but only about 10% of global data center capacity. This imbalance risks becoming entrenched, producing models that neither reflect the Global South’s realities nor serve local priorities. According to the article, "the Global South has become a net exporter of data," which is a significant concern for the region’s economic development.
The Power Constraint
The heart of this imbalance lies in a physical constraint: power. Data centers require uninterrupted, high-quality electricity, which is often lacking in the Global South. Fragile grids prone to outages and load shedding cannot support energy-intensive AI infrastructure. However, investing in flexible, digitalized, and renewable-ready grids can create a decisive competitive advantage. As the article states, "introducing energy-intensive AI infrastructure in such contexts risks intensifying competition with manufacturing and essential services for the limited grid capacity." Smart grid and off-grid pilots in Kenya and across East Africa have demonstrated the potential of renewables to improve access and reliability.
The Key Ingredients to Data Center Domination
The economics increasingly favor investing in renewable energy and flexible grid architectures. The combination of plummeting renewable energy costs and flexible grid architectures makes it possible to power AI infrastructure while strengthening energy security. Domestic and on-site renewables can insulate both industrial and residential consumers from price shocks, reducing social and political risk. As the article notes, "Brazil’s northeast is scaling renewable capacity alongside energy-intensive industries at globally competitive costs." Energy infrastructure alone, however, is not sufficient without also having the regulatory systems that enable rapid deployment. Agile regulatory approaches, such as Vietnam’s direct power purchase agreements, can reduce risk and accelerate timelines.
The Importance of Skilled Human Capital
Neither energy systems nor AI infrastructure is self-sustaining without skilled human capital. Building and operating future-ready grids and data centers requires technicians, engineers, and system operators with new skill sets. Retraining existing energy sector workers to deploy and maintain renewable assets is essential in the near term. Over the longer term, universities and technical institutes must produce professionals capable of managing advanced grid systems and AI-enabled operations. Continuous upskilling and reskilling will be critical to ensure that local communities benefit from the industries they help create, rather than being sidelined by them. As Medha Prasanna, the author of the article, notes, "the Global South now stands at a narrow but consequential inflection point."
Conclusion: Turning the Lights On
The Global South stands at a critical juncture, with the potential to harness AI for growth and development or risk being left behind. Without proactive action to modernize grids, scale renewables, streamline regulation, and invest in human capital, the AI boom will bypass much of the developing world and exacerbate global inequality. Acting quickly will involve tradeoffs and disruption, but the potential gains – energy independence, economic competitiveness, and accelerated development – are transformative. As the article concludes, "if the Global South wants a seat at the AI table, it must start with the fundamentals: turning the lights on – and keeping them on."
https://nationalinterest.org/blog/energy-world/grids-will-decide-the-global-souths-ai-future
