APAC Sustainable Data Center Market - Industry Outlook & Forecast 2026-2031

The APAC sustainable data center market is expected to grow at a CAGR of 15.43% from 2025 to 2031.

APAC SUSTAINABLE DATA CENTER MARKET INSIGHTS BY POWER CAPACITY

The APAC sustainable data center market by power capacity is expected to reach 5,190 MW by 2031. Growing digitalization and AI adoption are significantly increasing electricity requirements across APAC, prompting substantial investments in power generation and transmission infrastructure. At the same time, operators are accelerating the shift from conventional fossil fuel-based power to renewable sources through utility-scale solar, wind, and hydroelectric projects, along with long-term renewable energy procurement.

The rapid expansion of AI, cloud computing, and digital services is placing increasing pressure on electricity supply across APAC. According to the International Energy Agency (IEA), Southeast Asia's data center electricity consumption is expected to nearly double by 2030 compared with 2024, reflecting the broader trend across APAC. As demand continues to outpace available grid capacity in several regions, operators are diversifying their energy mix through renewable energy, captive power generation, battery energy storage, and alternative low-carbon fuels to ensure reliable and sustainable power supply.

Recent Developments & News in the APAC Sustainable Data Center Market

• Adani Group announced a $100 billion investment to develop renewable-energy-powered hyperscale AI-ready data centers across India by 2035, with plans to expand its platform from 2 GW to 5 GW of capacity.
• In June 2025, Amazon Web Services (AWS) announced an investment of $13 billion to expand its Australian data center infrastructure by 2029, supported by approximately 990 MW of renewable energy secured through nine Power Purchase Agreements (PPAs) and investments in three new solar farms.
• In 2026, China launched the world's first commercial offshore wind-powered underwater AI data center near Shanghai's Lingang Special Area. The 24 MW facility, backed by an investment of approximately $226 million, uses natural seawater for passive cooling and offshore wind power, reducing cooling energy consumption and achieving a PUE of below 1.15.
• In March 2026, Digital Edge announced the securing of a $665 million green loan to support the development of the first phase of its 500 MW CGK Campus in the GIIC Industrial Estate in Bekasi. The campus forms part of a $4.5 billion multi-phase investment and is planned as one of Indonesia's largest AI-ready hyperscale data center campuses.
• In Singapore, Equinix signed a renewable energy agreement with Sembcorp Power to procure 58.5 MWp of solar energy for its data centers beginning in 2029, demonstrating the increasing use of long-term PPAs in land-constrained markets.

APAC SUSTAINABLE DATA CENTER MARKET OPPORTUNITIES & TRENDS

Rising Renewable Energy Integration

Renewable energy integration has become a key priority for data center operators in the APAC region as they leverage clean power procurement, on-site renewable generation, and innovative energy partnerships to enhance sustainability, improve energy resilience, and address rising electricity demand.

Meta's first AI-enabled data center in Jamnagar, India, developed with Reliance Industries, will be powered by renewable energy, with additional clean energy procurement of nearly 1 GW (837 MW of solar and wind projects with CleanMax as well as 88 MW with Fourth Partner Energy across multiple states.)

The rising integration of renewable energy across the data centers in APAC underscores a fundamental shift toward sustainable digital infrastructure. As power demand continues to rise, operators are expected to further expand investments in renewable energy procurement, on-site generation, and low-carbon power solutions to ensure resilient, cost-effective, and environmentally responsible data center operations.

Innovative Data Center Cooling Technologies

Advanced cooling technologies are becoming central to sustainable data center development across APAC, with operators adopting liquid cooling, free cooling, seawater-based cooling, and recycled-water systems to reduce energy and water consumption while supporting high-density AI workloads.

Innovative cooling and water-management approaches are expanding beyond conventional land-based facilities, with projects such as China's underwater data center, Keppel's floating data center in Singapore, and AWS's recycled-water cooling initiative in Australia demonstrating the region's shift toward resource-efficient infrastructure.

AI-driven growth is accelerating investment in next-generation cooling solutions, including liquid cooling and free-cooling systems that reduce reliance on energy-intensive chillers and improve efficiency. Emerging approaches such as Hydroleap's chemical-free water treatment further support lower PUE and WUE, strengthening the sustainability of APAC's expanding data center infrastructure.

APAC GREEN DATA CENTER MARKET DRIVERS

Rapid Growth of Hyperscale and AI Campuses

The rapid expansion of AI infrastructure is accelerating the development of large-scale hyperscale data center campuses across India, Malaysia, Thailand, Singapore, Australia, Japan, and other APAC markets, driving demand for energy-efficient cooling systems, renewable energy sourcing, and sustainable data center designs.

Google's expansion of hyperscale infrastructure in Malaysia is being supported by a 21-year renewable power purchase agreement with TotalEnergies, securing approximately 1 TWh of clean electricity from the Citra Energies solar plant for its data center operations, including the $2 billion hyperscale campus under development in Elmina, Selangor.

Meta and Reliance Industries are accelerating AI infrastructure development in India with plans for a 168 MW AI-enabled data center in Jamnagar, Gujarat, Meta's first built-to-suit AI data center in the country. The facility will be supported by 1 GW of new renewable energy and desalinated seawater cooling, highlighting the growing integration of sustainable power and resource-efficient technologies in large-scale AI campuses.

Corporate Net-Zero and ESG Commitments

Corporate net-zero and ESG commitments are increasingly shaping data center development across APAC, driving operators and hyperscalers to adopt renewable energy, energy-efficient technologies, low-carbon infrastructure, and sustainable resource management to reduce emissions and improve environmental performance.

APAC data center operators are strengthening net-zero and ESG commitments, with AirTrunk, NTT DATA, Princeton Digital Group, and DayOne targeting significant emissions reductions or net-zero operations by 2030-2040, supported by renewable energy procurement, energy efficiency, and low-carbon technologies.

Data center operators are increasingly targeting lower PUE levels as part of their ESG strategies, with PDG targeting a PUE of 1.2-1.4 across new greenfield facilities and Equinix aiming for a global PUE of 1.33 by 2030. PUE optimization is becoming a key component of sustainable data center development in APAC, driven by energy-efficient infrastructure, renewable energy integration, and advanced cooling technologies to reduce operational energy consumption.

APAC SUSTAINABLE DATA CENTER MARKET RESTRAINTS

Rising Carbon Emissions from Data Centers

APAC faces heightened carbon risks as data center capacity expands, with the region potentially accounting for more than 40% of global data center capacity by 2030, while approximately 49% of its energy supply still comes from coal, creating challenges for achieving corporate and national net-zero targets.

AirTrunk reported a 25.4% increase in direct operational and purchased electricity emissions in FY25 compared with its FY22 baseline, reflecting the rapid expansion of its data center portfolio and growing customer demand, while highlighting the challenge of reducing emissions amid accelerating AI and cloud infrastructure growth.

As AI and hyperscale expansion accelerates data center capacity across APAC, rising carbon emissions will make renewable energy procurement, energy-efficient infrastructure, and measurable net-zero strategies increasingly critical to achieving sustainable growth.

Water Scarcity Affecting Data Centers' Operations

As data centers transition from traditional air cooling to high-performance cooling technologies such as liquid cooling to support AI workloads and improve energy efficiency, water demand is increasing. While liquid cooling can reduce electricity consumption for cooling, many liquid cooling systems rely on water-based heat rejection, creating new challenges around sustainable water use, particularly in water-stressed regions.

In 2025, Malaysia approved less than 18% of data centers' water supply requests, with only 142.06 million liters per day (MLD) approved out of 808 MLD requested across 101 data centers in Johor, Selangor and Negeri Sembilan. The shortfall highlights growing water resource constraints and the need for data centers to adopt alternative water sources such as reclaimed water and seawater.

Growing water scarcity is encouraging data center operators across APAC to prioritize water efficiency and improve Water Usage Effectiveness (WUE) through advanced cooling technologies, water recycling, and closed-loop systems. Operators are increasingly setting WUE targets and adopting low-water or water-free cooling solutions to reduce freshwater consumption while supporting sustainable data center expansion.

APAC GREEN DATA CENTER MARKET SEGMENTATION ANALYSIS

INSIGHTS BY INFRASTRUCTURE

Based on the infrastructure, general construction accounted for the largest APAC sustainable data center market share of around 41% in 2025. General construction includes building development, including site preparation and core and shell development, installation and commissioning services, architectural and engineering design, security systems, and data center infrastructure management (DCIM). Building development is carried out by major construction contractors in coordination with design and infrastructure providers and data center operators.

The primary objective of facility design is to create data centers that offer durability, scalability, and operational flexibility while ensuring efficiency and resilience. Design costs typically account for 4%-5% of overall expenditure, depending on facility size, capacity, and labor costs. Sustainability is also becoming increasingly important in construction. Amazon Web Services (AWS) has committed to using low-carbon concrete for future data centers in Tokyo and Osaka, partnering with local firms to deploy technologies such as ECM concrete, biochar-infused concrete, and Cleancrete, reducing embodied carbon by up to 64% compared with conventional concrete.

INSIGHTS BY MECHANICAL INFRASTRUCTURE

The mechanical infrastructure segment is expected to witness the highest growth during the forecast period. Data center operators across APAC are increasingly deploying liquid cooling, free cooling, and AI-driven cooling optimization technologies to reduce energy consumption, improve cooling efficiency for high-density AI workloads, and lower overall Power Usage Effectiveness (PUE).

Equinix has implemented liquid cooling at its SG5 International Business Exchange (IBX) data center in Singapore. Similarly, AirTrunk uses Indirect Evaporative Cooling (IEC) across hyperscale data centers, including SYD2 in Sydney and MEL1 in Melbourne, helping reduce water and energy consumption compared with conventional chiller-based cooling while achieving low PUE values.

Data centers using air-side economization may incorporate air ducts and can be designed with zero water requirements for cooling. Some facilities also use lake or seawater-based cooling solutions, although regular maintenance of piping infrastructure is essential to ensure reliable operations.

APAC SUSTAINABLE DATA CENTER MARKET GEOGRAPHICAL ANALYSIS

The Asia-Pacific (APAC) sustainable data center market is one of the fastest-growing regions globally, driven by rapid digitalization, cloud adoption, AI workloads, sustainability regulations, and increasing investments in renewable energy.

China dominates the APAC sustainable data center market, accounting for more than 30% of the market, supported by its large-scale data center capacity, strong government focus on green digital infrastructure, and rapid adoption of renewable energy and energy-efficient technologies. The country is increasingly integrating renewable power, advanced cooling, energy-efficient infrastructure, and green data center standards, positioning it as a key hub for sustainable data center development in the region.

Japan and Singapore represent mature sustainable data center markets, characterized by strong digital infrastructure, stringent energy-efficiency requirements, and increasing renewable-energy procurement. Singapore is particularly focused on developing low-carbon and AI-ready facilities, with new capacity subject to sustainability and energy-efficiency requirements.

South Korea is adopting innovative approaches to support sustainable data center growth, with investments spanning hydrogen-powered energy hubs, underwater cooling technologies, renewable energy projects, and energy storage systems. These initiatives are helping to create a cleaner and more resilient energy ecosystem that is capable of supporting the country's expanding AI and digital infrastructure sectors.

Australia's strong renewable energy base is creating favorable conditions for sustainable data center growth, with renewables accounting for approximately 52% of the power mix. The dominance of solar and wind provides data center operators with greater opportunities to procure renewable electricity, reduce carbon emissions, and support the development of low-carbon data center infrastructure.

India is emerging as a major sustainable data center market, supported by strong hyperscaler and colocation investment alongside growing renewable energy and green financing activity. Major players including Google, AWS, Microsoft, Apple and AdaniConneX are increasingly integrating renewable power, carbon removal, green loans, and energy-efficient infrastructure into their expansion strategies, positioning sustainability as a core driver.

Malaysia is emerging as a competitive hyperscale data center hub in APAC; Johor is gaining prominence as a cost-effective alternative to Singapore and is projected to account for nearly 60% of Malaysia's total data center capacity by 2030, strengthening its position as a key regional growth market.

APAC's sustainable data center landscape is shifting from mature hubs such as China, Japan, and Singapore toward renewable- and power-advantaged markets such as Australia, India, Malaysia, Indonesia, and Thailand. Sustainability is increasingly influencing site selection alongside power availability, with renewable energy access, water availability, grid capacity, and energy-efficient cooling becoming key competitive factors.

APAC SUSTAINABLE DATA CENTER MARKET VENDOR LANDSCAPE

The APAC sustainable data center market is characterized by the presence of major hyperscale cloud providers, colocation operators, telecommunications companies, and data center infrastructure developers, including Amazon Web Services (AWS), Alibaba Group, Apple, Google, Microsoft, Meta, Equinix, Digital Realty, AirTrunk, NTT DATA, Keppel Data Centres, Digital Edge DC, Princeton Digital Group (PDG), ST Telemedia Global Data Centres, NEXTDC, STACK Infrastructure, Vantage Data Centers, YTL Data Center, Nxera, AdaniConneX, CtrlS Datacenters, and others.

AirTrunk, among the key data center operators in APAC, has hyperscale campuses across Australia, Japan, Hong Kong, Malaysia, and Singapore with a strong focus on low Power Usage Effectiveness (PUE) and solar integration.

In June 2025, DayOne secured a $3.5 billion multicurrency green financing package to accelerate the development of next-generation sustainable data center campuses in Johor. Aligned with the Green Loan Principles, the financing will support new capital expenditure and refinancing, with new facilities targeting LEED Gold or higher certification.

The APAC sustainable data center market is supported by a growing ecosystem of renewable energy providers, power utilities, clean energy developers, and energy technology companies, including Adani Green Energy (AGEL), AGL Energy, AMP Energy, AMPIN Energy Transition, ANZA Power, Avaada Energy, B.Grimm Power, CleanMax, Concord New Energy Group (CNE), China Yangtze Power (CYPC), EDF Power Solutions, EDP, ENEOS Renewable Energy, Eurus Energy Holdings, First Gen Corporation and others.

These renewable energy providers are playing an increasingly important role in decarbonizing APAC's data center infrastructure by supplying solar, wind, and hybrid renewable power through long-term PPAs and captive energy arrangements.

For example, in April 2026, ST Telemedia Global Data Centres (STT GDC) Philippines signed a renewable energy supply agreement with MPower to procure up to 40 MW of renewable electricity for its STT Fairview and STT Cavite 1 & 2 data centers, supporting the sustainable operation of its growing data center portfolio.

In February 2026, Equinix signed a 15-year vPPA with ENEOS Renewable Energy for 121 MW of solar power from the Sanda Mega Solar Power Plant in Japan, supporting its goal of powering its Japanese data centers with 100% renewable energy.

The growing collaboration between renewable energy providers and data center operators is becoming a key enabler of sustainable data center growth across APAC.

Data Center Investors

• AdaniConneX
• AirTrunk
• Alibaba Group
• Amazon Web Services
• Apple
• AT TOKYO
• Big Data Exchange (BDx)
• Bitera DC
• Bridge Data Centres
• CDC Data Centres
• Chayora
• China Mobile International
• China Telecom
• China Unicom
• CloudHQ
• Colt Data Centre Services
• Converge ICT
• CtrlS Datacenters
• CyrusOne
• DAMAC Digital
• Datacom
• Datagrid
• DayOne
• Digital Edge DC
• Digital Realty
• Doma Infrastructure Group
• Equinix
• ePLDT
• ESR
• Evolution Data Centres
• FLOW Digital Infrastructure
• Global Switch
• Google
• GreenSquareDC
• Huawei Technologies
• Iron Mountain
• Keppel Data Centres
• LG Uplus
• Meta
• Microsoft
• NeutraDC
• NEXTDC
• NTT DATA
• Nxera
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Pi Datacenters
• Princeton Digital Group (PDG)
• Pure Data Centres
• RackBank
• Sify Technologies
• SpaceDC
• ST Telemedia Global Data Centres
• STACK Infrastructure
• SUNeVision
• VADS Berhad
• Vantage Data Centers
• Viettel IDC
• VNET
• Yondr
• Yotta Infrastructure
• YTL Data Center

Renewable Energy Providers

• ACCIONA Energia
• Adani Green Energy (AGEL)
• AGL Energy
• AMP Energy
• AMPIN Energy Transition
• ANZA Power
• Aslan Energy Capital
• Avaada Energy
• B.Grimm Power
• BluPine Energy
• Cenergi Sea
• Charoen Energy and Water Asia (CEWA)
• Concord New Energy Group (CNE)
• CYPC
• CleanMax
• Continuum Green Energy
• Cosmo Eco Power
• Ditrolic Energy
• EcoCeres
• EDF Power Solutions
• EDP
• ENEOS Renewable Energy Corporation
• Eurus Energy Holdings
• First Gen Corporation
• Fotowatio Renewable Ventures (FRV)
• Furusato Thermal Power
• Gamuda
• GCL-Poly Energy Holdings (GCL)
• Gentari
• Goldwind
• GreenYellow
• HEXA Renewables
• ib vogt
• Jiangsu Guofu Hydrogen Energy Equipment (GUOFUHEE)
• JERA
• JinkoSolar
• J-POWER
• JSW Energy
• Medco Power
• Meridian Energy
• Mercury
• ML Power
• MPower
• Neste
• OX2
• PacificLight
• Peak Energy
• PT PLN (Persero)
• ReNew Power Ventures
• SB Energy
• Sembcorp Industries
• Shell
• Shizen Energy
• Solargiga Energy
• Star Energy Geothermal
• SunSource Energy
• Suzlon Energy
• TagEnergy
• Tata Power Solar Systems
• Tenaga Nasional Berhad (TNB)
• Tokyo Electric Power Company (TEPCO)
• The AES Corporation
• TotalEnergies
• Trina Solar
• Vena Energy
• Woodside Energy
• X-ELIO

Segmentation by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by Geography

APAC

• China
• Hong Kong
• Australia
• New Zealand
• Japan
• India
• South Korea
• Taiwan
• Rest of APAC

Southeast Asia

• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Other Southeast Asian Countries

KEY QUESTIONS ANSWERED:

1. How big is the APAC sustainable data center market?

2. What is the growth rate of the APAC sustainable data center market?

3. What are the key trends in the APAC sustainable data center market?

4. How much MW of power capacity is expected to reach the APAC sustainable data center market by 2031?

5. Which country dominates the APAC sustainable data center market share?