A rapidly growing sector in the Asia Pacific region is that of sustainable data center operations. It is estimated to reach an impressive height of $22.91 billion by 2029, from $9.68 billion in 2023. The sector is influenced by the increase in renewable energy and more advanced technologies among data center operators and governments in the APAC region. Now that the APAC region is doing its best to mitigate the effects of climate change, this shift towards greener, energy-based solutions alters the existing data storage and processing environment.
Market Research Report on APAC Sustainable Data Centre Market Size from 2022 to 2027
Countries such as China, Australia, Japan, Singapore, India, Thailand, Indonesia, and Malaysia have led the way in this region’s march towards sustainable data center solutions. It has made great strides in incorporating renewable sources into its data centers, mainly through solar, wind, hydro, and biomass.
APAC remains dominated by solar and wind energy, but in 2023 geothermal energy is beginning to become an alternative source of power in South Korea and Indonesia. This has not only reduced the levels of GHG emissions but also efficiency since more data centres now use renewable energy.
Tech Giants Partner with Renewable Energy Companies
Major global technology companies accelerated APAC sustainable data center growth. While names such as Google, Microsoft, Tencent, AWS, Alibaba, and Huawei signed regional power-purchase agreements with renewable energy providers, the company view these transitions as essential to diminishing carbon footprints in cloud data centers and an assured cost-effective reliable energy supply.
An example is the investment by Google and Microsoft on green energy solutions that would power their data centers in China and Southeast Asia. Putting together renewable energy into their business models will give examples to other tech industries in following such a lead. In addition, these partnerships are what curb the costs of renewable energy, increasing its accessibility by other sectors.
Battery and Hydrogen Technology Innovations
Innovation with energy storage and alternative energy forms is yet another strong driver towards sustainability for data centers in APAC. Their partnership, such as that between Tech companies and researchers from the Pacific Northwest National Laboratory, designed a material that could reduce lithium usage up to 70% in their batteries, making it significantly more sustainable than today’s standards. Such advancements in battery technology may bring the volume of negative impacts of energy-storage solutions down on data centers.
Other related fields of technological development are those associated with batteries, and Honda and Mitsubishi companies are already developing the use of hydrogen-fueled cells for data centers. Hydrogen-fueled cell is a clean source that is efficient, enabling one to get more efficiency from the power consumed. Pilot runs through 2026 are testing such capacities on APAC data centers so far showing great results.
Data center operators like ST Telemedia Global Data Centres (STT GDC), GDS, and Equinix are also switching towards hydro-treated vegetable oil (HVO) fuel. HVO fuel provides a low-emission alternative to diesel and drastically minimizes the carbon footprint of data centers in the region.
Government Support and Regulations
Governments across the APAC region play a significant role in encouraging the switch to sustainable data centers. Regulations and incentives are now prompting data center operators to burn renewable sources of energy while curbing their imprint on the environment.
The finance ministry has placed stringent standards for data center efficiency in China. Data centers in that country are to reach a PUE less than 1.4 by 2023 and further reduce it to 1.3 by 2025. This is forcing data centers to achieve at minimum cost energy efficiency and fossil fuel independence.
The newly launched Sustainable Tropical Data Centre Test Bed shall aim to lead the way in data centre sustainability. This Test Bed, according to its intention, advances green data centre technology well ahead of Singapore’s ambitious environmental goals in tropical climates.
Meanwhile, Australia has already set its goal of transitioning its main power grid to 100% renewable energy by 2025. Significant investments in both solar and wind, along with a variety of initiatives regarding energy storage projects, ensure that all these elements will help the country to really deliver on those targets. On this path, Australian efforts boost their goal of reducing carbon emissions while building energy resilience in their data center operations.
Thailand is also quickly developing itself with the initiative Thailand 4.0, where it aims at investing $6 billion in smart grid technology by the end of 2030. Investment will provide higher resilience within the grids, reduce carbon emissions, and promote the transition towards greener operations in data centers.
Challenges in Water Consumption
Despite such rapid adoption, challenges are still present, particularly in terms of water usage. The more efficient the energy usage becomes in data centres, and the more data-intensive technologies including AI become, so will the consumption of water. In the case of China, data centre water consumption is likely to increase threefold by 2030. Cities like Shanghai have even set WUE targets; however, there is no national standard for water conservation by data centres yet.
To address this very issue, Australia and Singapore are reducing water utilization by advancing their solar energy capacity and bettering the storage systems of energy. Meanwhile, in India, 500 GW of renewable energy are set to be installed by 2030, further supporting the region’s transition towards greener data center operations.
Conclusion
The APAC sustainable data centre market will witness exponential growth with the integration of renewable energy and notable scientific innovation. China, Australia, and Singapore are at the forefront of this revolution, through government support, corporate partnerships, and investment in green technologies. Water usage is one of the biggest challenges, but commitment to sustainability is evident, and the future for data centers in APAC looks bright.
As this market continues to grow, the governments and enterprises need to collaborate and should not lag behind in bringing sustainable data centers into mainstream while ensuring interplay between concerns over environmental responsibility and operational efficiency.
Source: APAC Sustainable Data Centre Market Analysis