Sustainable Energy Trends in APAC Data Centers: A Shift Towards Renewables
Key Ideas
  • The APAC data center generator market is projected to reach $3.38 billion by 2029, with a CAGR of 10.32% from 2023.
  • Japanese companies like Hitachi Energy and Toshiba Fuel Cell Power Systems are leading in innovating generators using fuels like DRUPS and fuel cells.
  • There is a noticeable trend towards sustainability in data center operations in the APAC region, with a focus on integrating fuel-cell generators and hydrogen-powered fuel cells for high-power demands.
  • Telecom operators in APAC are transitioning from diesel to hydrogen generators, driven by increased industrial demand and rising diesel prices in countries like Malaysia, impacting the cost of operating diesel generators.
The APAC Data Center Generator Market is experiencing significant growth, with the market expected to reach $3.38 billion by 2029, showing a CAGR of 10.32% from 2023. Japan, a key player in the region, is at the forefront of innovation in generators, utilizing various fuels such as DRUPS, fuel cells, and natural gas. Companies like Hitachi Energy, FuelCell Energy, and Toshiba Fuel Cell Power Systems are providing advanced generator solutions that enhance efficiency for data center operators. The market is witnessing a shift towards sustainability, with a strong focus on integrating fuel-cell generators to meet the high-power demands of data centers. For example, Equinix is exploring the use of hydrogen-powered fuel cells to power its Singapore data centers. Additionally, telecom operators in APAC are moving from diesel to hydrogen generators to address the increased industrial demand and the impact of rising diesel prices, as seen in Malaysia where prices surged by over 50% in 2024. The article highlights the trend of AI usage in APAC, particularly in countries like China, Japan, India, Malaysia, and Singapore. This surge in AI data centers is driving collaboration between data center operators and generator manufacturers to develop sustainable, renewable energy solutions. The rise of fuel cell generators and the increasing adoption of gas generators are reshaping the data center landscape in the region. Overall, the APAC Data Center Generator Market is evolving towards more sustainable and renewable energy solutions to address the growing energy demands of data centers in the region. The shift towards hydrogen and fuel-cell generators indicates a positive and forward-looking approach to meeting the challenges of the evolving data center sector.
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