[2025 Predictions] A Glimpse Into Tomorrow’s Technology

By Terry Maiolo, Vice President & General Manager, Asia Pacific, OVHcloud

It is undeniable that artificial intelligence (AI) will continue to be a pervasive force in 2025. From boardroom to the classroom and to home, AI will remain ubiquitous in our daily lives. Already a pertinent tool in various industries, AI’s reach extends to the quantum realm, where its integration promises to unlock unprecedented potential for innovation. However, the cloud will stay as the cornerstone, providing the necessary infrastructure to harness the power of these technologies and deliver tangible benefits to individuals and the society.

1. Southeast Asia’s AI gold rush

Generative AI (GenAI) has irrevocably reshaped numerous industries, and Southeast Asia (SEA) stands at the forefront of this technological revolution. The region is estimated to have driven $30 billion in AI infrastructure investment in the first half of 2024, with this surge driven by soaring consumer interest, high digital literacy and a robust smartphone market. In fact, the region is home to over 400 million internet users and a booming digital economy.

In 2025, we anticipate a significant surge in the adoption of AI agents. These intelligent systems are poised to streamline workflows, boost efficiency, and deliver unparalleled value to both businesses and consumers. Already, we are seeing promising applications across various industries, from customer-facing chatbots to internal tools that assist employees in their daily tasks – even outside of traditionally tech-centric industries. By bridging GenAI’s capabilities with real-world execution, AI agents can help unlock AI’s full potential. In fact, GenAI has the potential to generate over $2.6 trillion in annual value, with AI agents playing a key role.

The rise in AI agents will ultimately lead to a significant increase in the amount of data that is created and utilised. With more data generated than ever before and new data sources emerging, increasing amounts of data will become scattered across disparate systems, limiting its accessibility and utility – unless governed by robust infrastructure and a trusted cloud. Moreover, the sheer volume of data will place increasing demands on data centres, necessitating scalable storage and processing capabilities.

2. The quantum-AI revolution

Gen AI has undoubtedly moved the needle forward in so many ways, but it is just one of the several groundbreaking technologies shaping the future of businesses. Quantum computing, a revolutionary technology with the potential to transform industries and solve complex problems beyond the reach of classical computers, is also rapidly evolving. Though still in its infancy, remarkable progress is being made in both hardware and software, signalling the dawn of a new era in computing that promises unprecedented speed, power and innovation.

In fact, the APAC region is at the forefront of the global quantum computing race. This surge is driven by increasing investments, robust research ecosystems, and a growing number of quantum startups and collaborations. Recognising the strategic importance of quantum technology, Singapore has also committed SG$300 million – on top of a previous SG$96.6 million commitment announced in 2022 –  to its National Quantum Strategy, aiming to establish the nation as a global hub for quantum research and development.

As quantum computers mature, we can expect to see increasing integration with AI into quantum AI. This convergence has tremendous potential from optimising complex financial models to accelerating drug discovery, with the ability to revolutionise industries. For example, in energy, it could accelerate the development of new, more efficient, renewable energy technologies.

3. The looming energy crisis in data centres

While GenAI and quantum computing are revolutionising technology, they are also fuelling a data explosion. Data centres, already struggling to keep pace, face an even greater challenge as businesses accelerate their digital transformation. These facilities, already energy-intensive, consumes 1-1.5 percent of global electricity with potentially significant implications on energy use from AI and Machine Learning in upcoming years.

In fact, as the immense computational demands of AI and quantum workloads require substantial processing power and storage capacity, the resulting heat output necessitates increased energy consumption to maintain optimal operating temperatures. This will strain cooling systems, escalating energy consumption, and exacerbating overall data centre energy usage. In SEA, cooling data centre systems alone accounts for 40 percent of energy consumption, 10 percent more than the global average. Furthermore, the same research revealed that over 95 percent of data centres in the region still use traditional air-cooling despite its recognised higher expenditure, as opposed to the more efficient watercooling.

Singapore, a key player in SEA’s data centre landscape, continues to lead the charge towards sustainable data centre development. The nation has not only established standards to facilitate the construction and operation of energy-efficient data centres, but also has plans to introduce standards for IT equipment and energy-efficient watercooling by 2025. Concurrently, governments worldwide are increasingly recognising the need for cleaner energy sources, with hydrogen fuel cells emerging as a promising alternative to fossil fuels.

As environmental concerns take precedence on business agendas, it becomes imperative for businesses to prioritise green data centres – which are designed to optimise energy efficiency, scalability and environmental sustainability. By implementing advanced cooling technologies such as water cooling, data centres can significantly reduce their water and electricity consumption, thereby minimising their environmental impact. The good news? We are already seeing markets like Thailand take steps, with others like Vietnam announcing plans to follow in the coming years. By investing in energy-efficient infrastructure and adopting eco-friendly practices, businesses will be able to achieve long-term success in the cloud and ensure that its digital ambitions are not curtailed by avoidable setbacks.