APAC Sustainable Data Center Market - Industry Analysis & Outlook 2024-2029

KEY HIGHLIGHTS

• China, Australia, Japan, India, Thailand, Indonesia, Singapore, and Malaysia are leading the development of sustainable data centers in the Asia-Pacific sustainable data center market. Data center operators and governments in these countries have advanced the use of renewable energy and other sustainable practices due to ongoing global warming and climate change issues.
• In 2024, solar and wind energy dominate the market, with hydro and biomass following. Renewable energy companies have expanded their non-fossil fuel portfolios by investing in new projects and securing power purchase agreements with data centers to enhance sustainability.
• Cloud data center providers, such as Google, Microsoft, Tencent, AWS, Alibaba, and Huawei, fuel market expansion through sustainable investments and cutting-edge technologies. They have partnered with leading renewable energy providers to secure regional power purchase agreements (PPAs).
• Data centers increasingly turn to geothermal energy in 2024 alongside solar, wind, and biomass sources. In APAC, South Korea and Indonesia lead in geothermal adoption, with companies such as LG U+ and Princeton Digital Group(PDG) purchasing geothermal power from top renewable energy provider to fuel their operations.

KEY TRENDS

Innovations in the Data Center Technologies

• In January 2024, Honda and Mitsubishi revealed plans to pilot a small data center using hydrogen from Tokuyama Corporation's electrolysis plant. This hydrogen, a by-product of sodium hypochlorite and chlorine production, will power Honda's fuel-cell power station and Mitsubishi's data center. The project will run until March 31, 2026.
• In the APAC sustainable data center market, leaders like STT GDC, GDS, and Equinix have adopted Hydrotreated vegetable oil (HVO) fuel for their generators to enhance sustainability. In 2024, GDS China and STT GDC transitioned to HVO and hydrogen fuel cells for backup power.
• Microsoft and the Pacific Northwest National Laboratory have made notable advancements in battery technology through artificial intelligence in APAC data centers. Their new material, N2116, has the potential to cut lithium use by up to 70% compared to current batteries.
• In December 2023, Digital Edge trialed a new robot prototype named Nora’ at its Narra 1 data center in Manila, Philippines. Nora autonomously navigates and assists visitors using facial recognition and voice commands, functioning for up to eight hours on a single charge.

Government Push Toward Sustainability

• Governments across APAC, including China, Australia, New Zealand, India, Indonesia, Malaysia, Singapore, and Thailand, have made concerted efforts to boost the use of renewable energy sources.
• In 2023, the Ministry of Finance of China, Ecology and Environment, and Industry and Information Technology introduced a Green Data Center standard, effective July 1, 2023. The standard mandates specific criteria for equipment and services, including a Power Usage Effectiveness (PUE) of under 1.4 from June 2023 and under 1.3 from 2025, and requires a water-to-power consumption ratio of less than 2.5 L/kWh.
• In November 2023, Singapore's Minister of State for Trade and Industry unveiled the Sustainable Tropical Data Centre Testbed (STDCT), a cutting-edge facility designed for tropical climates. Hosted by the National University of Singapore, this testbed marks a significant milestone in advancing data center technology and supports Singapore's green technology goals under the RIE 2025 plan.
• Thailand 4.0 aims to implement smart energy initiatives for economic development. Under the policy, over $6 billion will be invested by the state-owned enterprises in smart grids before 2036 to improve the grid’s resilience and efficiency, leading to reduced carbon emissions.

GEOGRAPHICAL ANALYSIS

• Several countries in Asia-Pacific (APAC) are implementing renewable energy sources to meet their growing energy needs. Notable among these are China, Australia, Japan, India, South Korea, Singapore, Malaysia, and Indonesia.
• By 2030, China's data center water usage will increase from 1.3 billion cubic meters to over three billion cubic meters, driven by surging AI needs. While national standards for Water Usage Effectiveness (WUE) are absent, cities such as Shanghai have set targets, such as a WUE of 1.4.
• In Singapore, the government has launched the Singapore Green Plan 2030. It sets ambitious targets to boost solar energy capacity to 1.5 gigawatts peak (GWp) by 2025 and further expand it to 2 GWp by 2030.
• By 2025, Australia aims to convert its main power grid to 100% renewable energy. Initially, this will involve intermittent renewables to reach 82% renewable energy by 2030 through enhanced wind, solar, and energy storage.
• India plans to install about 500 gigawatts (GW) of renewable energy by 2030, including 140 GW of wind power and 280 GW of solar energy.
• Each country has made strides toward a more sustainable future, reflecting a broader trend in APAC toward increased reliance on renewable energy.

Segmentation by Geography

• APAC
• China
• Hong Kong
• Australia & New Zealand
• Japan
• India
• South Korea
• Rest of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Other Southeast Asian Countries

VENDOR LANDSCAPE

Large Colocation and Hyperscale Data Center Operators Drive APAC Sustainable Data Center Market Growth

• Cloud data center tech giants such as Google, Microsoft, Tencent, Meta, and AWS have led the charge in renewable energy across APAC and various sectors, especially government. For instance, in 2024, AWS constructed a secure, sustainable data center for the Australian government, which has pledged USD 850 million over ten years for security and green sustainability.
• Major colocation and hyperscale data center operators, such as Equinix, Singtel, STT GDC, NTT Data Centers, and Digital Realty, have actively reduced their carbon footprints by investing in renewable energy. New players, such as Datagrid, Datacom New Zealand, DataVolt, and Bitera Data Center, contribute significantly to sustainable data centers. In 2024, these firms channel millions into Power Purchase Agreements (PPAs) for renewable energy, enhancing their commitment to sustainability.
• Key renewable energy players in the APAC sustainable data center market include ACCIONA Energia, Adani Green Energy, AGL Energy, and ReNew Power Ventures. In 2024, new entrants, such as FRV Australia, Mercury NZ, and Shizen Energy, have partnered with leading data centers to enhance sustainability.

Prominent Data Center Investors

• AirTrunk
• Bitera Data Center
• Alibaba Group
• Amazon Web Services (AWS)
• AdaniConneX
• Apple
• Big Data Exchange (BDx)
• CDC Data Centres
• Chayora
• China Telecom
• China Mobile
• Chindata Group
• China Unicom
• Colt Data Centre Services
• Converge ICT
• CtrlS Datacenters
• Datacom
• Datagrid
• Datavolt
• Digital Edge DC
• Digital Realty
• Equinix
• Meta
• GDS Services
• Global Switch
• Google
• Huawei Technologies
• Iron Mountain
• Keppel Data Centres
• LG Uplus
• Lotte Innovate
• Microsoft
• NEXTDC
• NTT Global Data Centers
• Nxera
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Pi Datacenters
• Princeton Digital Group (PDG)
• Pure Data Centres
• RackBank
• Regal Orion
• Sify Technologies
• SpaceDC
• ST Telemedia Global Data Centres
• STACK Infrastructure
• SUNeVision
• Vantage Data Centers
• VADS Berhad
• Viettel IDC
• VNET
• Yondr
• Yotta Infrastructure
• YTL Data Center

Renewable Energy Providers

• ACCIONA Energa
• Adani Green Energy (AGEL)
• AGL Energy
• AMP Energy
• AMPIN Energy Transition
• Avaada Energy
• Cenergi Sea
• China Yangtze Power (CYPC)
• Continuum Green Energy
• EDF Renewables
• ENEOS Renewable Energy Corporation
• Fotowatio Renewable Ventures (FRV)
• GreenYellow
• GCL-Poly Energy Holdings
• Ib Vogt
• JinkoSolar
• Mercury
• Neste
• Solar Power New Zealand
• OX2
• PacificLight Energy
• Peak Energy
• ReNew Power Ventures
• SB Energy
• Sembcorp Industries (Sembcorp)
• Shell
• Shizen Energy
• Suzlon Energy
• Solargiga Energy
• Star Energy Geothermal
• SunSource Energy
• TagEnergy
• Tata Power Solar Systems
• TEPCO
• TotalEnergies
• The AES Corporation
• Trina Solar
• Vena Energy
• Woodside Energy
• Goldwind

KEY QUESTIONS ANSWERED: