Artificial Intelligence Steps In to Lower Carbon Footprint of Buildings

Artificial intelligence is starting to help buildings go greener.

Keeping our buildings running contributed roughly 26% of global energy-related greenhouse-gas emissions in 2022, according to the International Energy Agency. For the world to reach net-zero emissions by 2050, the agency says the energy that these buildings consume per square meter (around 11 square feet) needs to decline by around 35% by 2030.

Developers and construction companies have pursued more-efficient energy use in buildings over the past couple of decades. Leadership in Energy and Environmental Design, or LEED, certifications are given to buildings that meet standards that conserve energy, water, waste and other environmental goals.

Governments are also introducing increasingly stringent energy codes for commercial spaces. Still, more than 80% of buildings don’t have smart systems to efficiently manage their energy use.

JLL, which manages billions of square feet of commercial real estate around the world, has been making a string of investments to bring AI systems to companies looking to cut their emissions. The business case: Eco-friendly buildings charge higher rents and are on the market for less time. JLL says it expects 56% of organisations to pay a premium for sustainable spaces by 2025.

“We want to make every building out there as smart as it can be,” said Ramya Ravichandar, JLL Technologies’s vice president, technology platforms—smart and sustainable buildings. “If you can’t measure what matters, you can’t make the change.”

JLL’s investments include in Turntide, a company based in Sunnyvale, Calif. that installs electric motors coupled with small computers which learn from patterns to more precisely control heating and cooling, and Envio Systems, a Berlin-based company that develops sensors to track a building’s use, occupancy and other factors to adjust lighting, cooling and similar energy-related activities.

“Do I need to keep the lights on? Do I need to turn off the air conditioning on floor three because the entire company is working from home this week?,” Ravichandar said. “If you have a system, it is relentless and constantly processing this information.”

Generally, AI building systems learn from historical patterns and the daily habits of occupants to predict and power things on and off. For instance, software and hardware that automatically manages lights, heating and cooling can help buildings cut 20% or more of their yearly energy use.

Nevertheless, hurdles remain to installing more AI systems, including gathering data from a wide range of sources in buildings, such as sensors, which often aren’t interconnected enough. “Retrofitting existing buildings with such sensors and infrastructure, as well as ensuring consistent data quality, can be resource intensive,” Ravichandar said.

Not enough data

AI has big potential to cut the emissions of buildings, but it is only as good as the data it learns from. Only 10% to 15% of buildings have the equipment or systems in place to gather the data needed to support AI, said Thomas Kiessling, chief technology officer of Siemens Smart Infrastructure. “AI in buildings works if you have the data,” he said. “Bad data means you can’t do any kind of schedules, rules or more sophisticated use cases around artificial intelligence. You have to have the data.”

Siemens uses AI to compare one building to a thousand similar buildings to predict what the energy savings could be after an upgrade to a smart-energy management system.

“Even if you just know the address of that commercial building, and maybe you have the energy bill, and maybe you have some high level information of what kind of HVAC brand the building uses, that is these days enough to compile a profile of the building with respect to what is likely you could reap,” Kiessling said.

Otherwise, lower-cost sensors, such as for lighting and cooling, can help save energy for companies that don’t have a sophisticated management system.

Venture-capital firm Fifth Wall’s $500 million fund is focused on decarbonising buildings and invests roughly a third of its money in startups with some kind of AI offering, both in software and hardware, the fund’s co-manager Greg Smithies said. A bigger focus is using more sustainable materials, such as concrete and steel made with renewable energy.

Smithies says AI can help with quickly and cheaply identifying where it makes economic sense to upgrade buildings, fill out permits that vary between countries, draw up mock-ups of designs and come up with chemistry for sustainable materials.

“The main message overall is we’re not going to save the planet with software, and AI is software,” Smithies said. “But AI is an interesting piece of the puzzle.”

Byron Bay’s most compelling homes have always taken their cues from the climate. They open to the breeze, dissolve the boundary between inside and out and use tropical landscaping to create privacy without shutting out the natural world.

At 17 Kendall Street, those familiar coastal ideas have been elevated into something more architectural.

The five-bedroom residence is designed around a spectacular open-air courtyard, creating a private internal landscape where glass, stone, timber and water meet. Floor-to-ceiling glazing draws natural light into the interiors while framing the heated swimming pool and established tropical gardens from multiple points within the home.

The home was originally built in 2016, but underwent a major renovation last year following its $5.3 million sale in 2023. Sotheby’s Byron Bay agent Will Phillips has a $15 million price guide.

The transformation focused on both the home’s scale and its level of detail. Soaring voids and bold architectural forms create drama, but the material palette keeps the atmosphere warm. Rich timber, natural stone and handcrafted finishes temper the contemporary lines, allowing the residence to feel calm rather than imposing.

A sculptural spiral staircase forms the architectural centrepiece, connecting the home’s different spaces while providing a strong visual counterpoint to the horizontal lines of the courtyard and pool.

The planning is centred on connection. Multiple living and entertaining areas open to covered terraces, enabling the house to expand and contract according to the occasion. Smaller spaces support quiet family life, while the principal living zones and alfresco areas can accommodate considerably larger gatherings.

At the centre, the courtyard operates as more than an impressive arrival feature. It brings light and garden views deep into the plan, provides separation between the home’s different wings and creates a protected outdoor environment for year-round living.

Accommodation comprises five generously proportioned bedroom suites supported by five designer bathrooms. Their distribution through the residence gives family members and guests a greater sense of privacy, while the tropical outlook maintains a consistent connection between rooms.

Wellness Wing

The home’s most distinctive inclusion may be its dedicated wellness wing.

A private sauna, gym, Zen room and traditional Japanese soaking bath combine to create a retreat within the retreat. Rather than treating wellness as a single-purpose gym placed in a leftover room, the design gives it a dedicated sequence of spaces intended to support exercise, recovery and quiet.

The Japanese soaking bath is especially appropriate to the home’s broader architecture. Compact, deep and designed for immersion rather than conventional bathing, it complements the restraint of the Zen room and the calming views into the garden.

Outside, the heated pool and covered dining terraces provide the more social side of resort living. Tropical landscaping creates privacy around the residence, while the courtyard design allows greenery to remain visible throughout much of the interior.

Belongil Boom

The location adds another dimension to the property. Kendall Street sits near the Belongil side of Byron Bay, within walking distance of Belongil Beach and local dining including Belongil Bistro, Treehouse, Féu and the town centre’s broader collection of cafés, restaurants and boutiques.

That northern pocket is increasingly emerging as a prestige counterweight to Wategos and the tightly held Marine Parade strip at the opposite end of Byron Bay.

Much of the most visible investment has centred on nearby Border Street and the Belongil beachfront. Hospitality billionaire Justin Hemmes has assembled four residential holdings in the neighbourhood at a reported combined cost of about $45 million. His acquisitions include a beachfront holding bought for $16 million in 2023 and a subsequent creek-front purchase.

The Block judge and interior designer Darren Palmer and his husband, Olivier Duvillard, have also moved into the precinct, paying $4.2 million for an original home with creek views.

Luxury developer and builder GRAYA has made an even larger commitment. The Brisbane group acquired a substantial Border Street beachfront site for about $20.65 million in 2024, with plans for a major trophy-home project. Part of that holding was subsequently sold in a transaction that underlined how dramatically land values have moved.

The strongest evidence came from Chemist Warehouse director Damien Gance and his wife, Sasha Robertson. The couple paid $33.5 million in cash for the beachfront residence Malia, setting a Byron Bay house-price record and surpassing the $30 million sale of Watermark at Wategos in 2023. They then reportedly spent another $20 million securing the neighbouring vacant parcel, taking their combined Belongil investment to $53.5 million.

Those transactions do not make Kendall Street directly comparable with absolute beachfront property. They do, however, illustrate the growing weight of capital and attention shifting towards Byron Bay’s northern edge.

For decades, Marine Parade at Wategos has been the region’s clearest shorthand for trophy property. Border Street and the wider Belongil precinct are now building a comparable identity, supported by larger holdings, beachfront scarcity and an expanding concentration of prominent owners.

Property details

Address: 17 Kendall Street, Byron Bay, NSW
Location: Near Belongil Beach and Byron Bay town centre
Original construction: 2016
Last sale: $5.3 million in 2023
Renovation: Major renovation completed in 2025
Current price guide: $15 million
Bedrooms: Five
Bathrooms: Five
Key features: Central open-air courtyard, heated swimming pool, tropical landscaping and multiple indoor-outdoor living areas
Wellness facilities: Sauna, Zen room, gym and traditional Japanese soaking bath
Nearby: Belongil Beach, Belongil Bistro, Féu and Treehouse

Artificial Intelligence Steps In to Lower Carbon Footprint of Buildings

Property companies are increasingly offering AI energy software to help cut the greenhouse-gas emissions of buildings

Not enough data

Wellness Wing

Belongil Boom

Property details