Sustainable Data Centre Expansion in APAC: A Partnership-Driven Revolution
Key Ideas
  • The Asia Pacific region is poised for a substantial growth in sustainable data centres, with a projected CAGR of 15.44% from 2023 to 2029.
  • Tech giants like Google, Microsoft, and Alibaba are collaborating with renewable energy providers to power their cloud data centers sustainably.
  • Innovations in battery technology are reducing lithium usage, while companies like Honda and Mitsubishi are exploring hydrogen fuel cells for data center power.
  • Governments in countries such as China, Singapore, Thailand, and Australia are implementing regulations and incentives to promote renewable energy adoption in data centers.
The Asia Pacific (APAC) region is gearing up for a significant expansion in sustainable data centers, anticipating a remarkable growth rate of 15.44% from 2023 to 2029. Countries like China, Australia, Japan, and India are making strides towards adopting renewable energy sources such as solar, wind, and hydro for their data centers. Tech behemoths like Google, Microsoft, and Alibaba are forging partnerships with renewable energy providers to ensure sustainable power supply for their cloud data centers through regional power purchase agreements. Moreover, advancements in battery tech are revolutionizing sustainability efforts by reducing lithium usage, while companies like Honda and Mitsubishi are delving into hydrogen fuel cells as an alternative energy source. Governments across the APAC region are enacting stringent regulations and offering incentives to propel the shift towards greener data center operations. For instance, China has mandated data centers to achieve a power usage effectiveness of less than 1.4 by 2023. Singapore has initiated a sustainable tropical data center test bed to promote green data center tech. Though renewable energy adoption is on the rise, water consumption in data centers, particularly in China, remains a concern. Initiatives in countries like Australia, Singapore, and India are focusing on water conservation and expanding renewable energy capacity to support the transition to eco-friendly data centers.
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