Singapore-based data center platform firm Digital Edge launches its first green finance framework in pursuit of funding for sustainable data center projects, which will help the company further its ESG commitments and target to be carbon neutral by 2030.
ESG Commitment: Four Key Criteria for Green Financing
Digital Edge in their green finance framework defined four major sustainability requirements which must be met in qualifying a project for financing green. These are a fundamental requirement every data centre project must meet to guide the company toward carbon-neutrality. The four sustainability requirements are:
Energy efficiency standards
In colder climates, projects should be 1.30 or better; in warmer climates, projects should be 1.40 or better. PUE is a measure of efficiency-total energy consumed by a data center divided by the amount used by its computing equipment. Digital Edge’s most recent data centers meet the green financing criteria with a PUE of 1.25.
Installation of renewable energy
All projects initiated using this model should comprise some degree of renewable energy. Deployment of renewable energy reduces reliance on fossil fuels, hence not inconsistent with Digital Edge goal of lowering the greenhouse emission levels.
Environmentally-Friendly Building Designs
These funded data centers should be designed in such a way that environmental impacts are reduced. They include the use of green building materials, optimizing the amount of insulation, and avoiding loss through architectural designs. This would help ensure that Digital Edge facilities are environmentally friendly and efficient.
Water and Wastewater Management
Water usage management is an area of importance for data centers to be used primarily for cooling the servers. According to the framework of green finance, water and wastewater management plans sustainable in the project should ensure that such a facility holds systems with minimal wastages of water, recycle, and reuse where possible water, and use efficient cool technologies that consume little water.
Sustainable Transition Financing for Sustainable Data Centers
This green finance framework helps Digital Edge attract investors that have invested in projects of environmental and social significance. Aiming to finance projects from a financially sustainable perspective, it aims to raise the capital needed to grow its network of energy-efficient data centers in Asia. In fact, its first green loan under this framework financed its first data center in Seoul, South Korea. This new funding approach positions Digital Edge as a leader in sustainable data center infrastructure, especially as the demand for power by technologies continues to increase across all industries.
Ongoing Accountability and Reporting Framework
Digital Edge has also established a system under the framework to monitor, track, and report the result of green-financed projects. The company has a committee that monitors compliance through tracking performance against the standards under the green finance framework. Additionally, the company incorporates its sustainability achievements and project results into its annual ESG report published. This not only supports Digital Edge’s commitment to ESG but also provides investors with greater confidence since its business practices align with sustainable finance expectations.
Carbon Neutrality Target by 2030: Strategic Goal
Following its green finance framework, Digital Edge will pursue massive steps toward carbon neutrality by 2030. The target is in alignment with international environmental standards and the increasing expectations from businesses to take the environment-friendly route. As a high-energy-consumption industry, it has been challenging to attain carbon neutrality without a strategic approach toward energy usage, adoption of renewables, and proper management of waste.
Industry Background: the Demand for Sustainable Data Centers
The high deployment of AI, cloud computing, and more data-hungry applications is posing more energy strains on the data centers. Industry research and forecasts state that in the next ten years, there will be substantial growth in the consumption of energy by data centers. This in turn compels operators to opt for energy-saving technologies and renewable power resources to address the environmental aspects.
In response to these challenges, Digital Edge’s proactive approach, through its green finance framework, allows it to align with the growth trajectory of sustainability. This framework will likely become a model for other data center companies looking to reduce their footprint and attract green funding.
Future: Digital Edge Role in Sustainable Technology Infrastructure
Digital Edge’s green finance framework proves that it is fully embracing the integration of ESG principles in its operations. As it focuses on energy efficiency, renewable energy, green design, and efficient management of water, it provides high standards in the data center industry. This will also achieve sustainability goals from the company’s side, thereby affecting the industry in terms of greener practices in keeping up with the rising demands for data.
This green finance model by Digital Edge has positioned the firm at the head of the pack regarding future sustainability in the data center space as it continues to grow its Asia presence. Through this, the company creates strength for itself within a very changing industry. Having begun with green finance, this process is also toward a 2030 target to reach carbon neutrality-a proof that there’s an interest to be on the leading side in terms of sustainable digital infrastructure.
Source: Digital Edge