According to Arizton’s latest research report, the APAC sustainable data center market is growing at a CAGR of 15.43% during 2023-2029.
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Report Scope:
Market Size (2029): $22.91 Billion
Market Size (2023): $9.68 Billion
CAGR (2023-2029): 15.43%
Power Capacity (2029): 2,985 MW
Historic Year: 2020-2022
Base Year: 2023
Forecast Year: 2024-2029
Market Segmentation: Infrastructure and Geography
Geographical Analysis: APAC and Southeast Asia
Rapid Growth of the Sustainable Data Center Market in Asia-Pacific
The Asia-Pacific (APAC) sustainable data center market is one of the fastest-growing sectors globally, featuring key hubs in countries like China, Singapore, South Korea, Japan, Australia, India, and Hong Kong. However, challenges such as land and power shortages have emerged in regions like Singapore and Taiwan, prompting operators to shift focus to Tier 2 countries such as Malaysia, Indonesia, and Thailand. Within APAC, colocation providers lead the market, followed closely by internet and cloud service companies. A notable trend is the increasing adoption of green energy as operators aim to meet corporate and governmental carbon neutrality goals.
Investment Analysis
In 2024, investments in APAC data centers surged significantly, driven by a growing internet user population, the rise of online gaming, and the increasing adoption of artificial intelligence technologies, including Generative AI. The proliferation of smartphones, a shift toward cloud computing, and businesses’ desire to move from in-house server setups to larger, more efficient data centers further fueled this trend.
Key market players, such as Nxtra by Airtel, L&T Cloudfiniti, Sify Technologies, GDS Services, SUNeVision Holdings (iAdvantage), Equinix, and Digital Realty, made substantial investments aimed at integrating renewable energy sources into their operations to align with sustainability goals.
Major cloud service providers, including Google, Facebook, Alibaba, Tencent, AWS, and Microsoft, significantly increased their investments. This influx of capital is expected to expedite the migration of businesses and government organizations to cloud-based systems while promoting a transition from traditional energy sources to renewables.
In 2024, the APAC green data center market was led by China, Australia, New Zealand, Japan, Singapore, and India, collectively accounting for approximately 50% to 60% of the region’s green data center investments. Meanwhile, Malaysia and Thailand have emerged as new contenders in this sector, responding to the limitations of power and land availability in more established data center locations.
Recent power capacity and renewable energy sustainability initiatives in South Korea
- In May 2024, Digital Edge introduced a novel energy storage solution to replace lithium-ion batteries. Partnering with South Korea’s Donghwa ES, Digital Edge has developed a Hybrid supercapacitor (HSC) to enhance power supply efficiency in its UPS systems.
- In December 2023, Amazon announced a new collaboration with SK E&S to initiate a solar energy project in South Korea. With a capacity of 60 megawatts (MW), this project represents a significant step toward Amazon’s goal of achieving 100% renewable energy. The partnership will involve developing and managing a solar farm designed to provide clean energy for Amazon’s data centers and corporate offices.
Key Trends
Innovations in Data Center Technologies
- In January 2024, Honda and Mitsubishi announced a pilot project for a small data center powered by hydrogen generated from Tokuyama Corporation’s electrolysis plant. This hydrogen, produced as a by-product of sodium hypochlorite and chlorine manufacturing, will fuel Honda’s fuel-cell power station and Mitsubishi’s data center, with the project running until March 31, 2026.
- In the APAC sustainable data center market, leading companies like STT GDC, GDS, and Equinix have adopted Hydrotreated Vegetable Oil (HVO) for their generators to enhance sustainability. In 2024, both GDS China and STT GDC transitioned to HVO and hydrogen fuel cells for backup power.
- Additionally, Microsoft and the Pacific Northwest National Laboratory have made strides in battery technology using artificial intelligence. Their new material, N2116, has the potential to reduce lithium usage by up to 70% compared to existing batteries.
- In December 2023, Digital Edge tested a robot prototype named Nora at its Narra 1 data center in Manila, Philippines. Nora autonomously navigates the facility, assisting visitors through facial recognition and voice commands, and can operate for up to eight hours on a single charge.
Government Push Toward Sustainability
- Governments across the APAC region—including China, Australia, New Zealand, India, Indonesia, Malaysia, Singapore, and Thailand—are actively promoting the use of renewable energy sources.
- In 2023, China’s Ministry of Finance, alongside the Ministries of Ecology and Environment and Industry and Information Technology, introduced a Green Data Center standard effective July 1, 2023. This standard sets specific criteria for equipment and services, including a Power Usage Effectiveness (PUE) of under 1.4 by June 2023 and under 1.3 by 2025, along with 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 facility designed specifically for tropical climates and hosted by the National University of Singapore. This testbed represents a significant advancement in data center technology and supports Singapore’s green technology objectives under the RIE 2025 plan.
- Thailand 4.0 is also making strides with its smart energy initiatives aimed at economic development. The policy includes over $6 billion in investments by state-owned enterprises in smart grids before 2036 to enhance grid resilience and efficiency, ultimately reducing carbon emissions.
Key Players
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
- 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
Market Segmentation
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Geography
- APAC
- China
- Hong Kong
- Australia & New Zealand
- Japan
- India
- South Korea
- Rest of APAC
- Southeast Asia
- Singapore
- Indonesia
- Malaysia
- Other Southeast Asian Countries
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