Anchoring the Future: Aligning Digital Transformation and Sustainability in APAC

The Asia-Pacific region is at the epicentre of global digital transformation. The rapid adoption of cloud technologies, the exponential growth of artificial intelligence (AI) and the emergence of sovereign digital infrastructure are reshaping societies and economies. At the core of this transformation are data centres – strategic assets enabling innovation, economic growth and resilience.

At the same time, sustainability has become a non-negotiable imperative. Governments, investors, and communities are calling for a digital future that does not come at the expense of environmental stewardship. Our industry faces the challenge of ensuring that growth in digital capacity supports, rather than undermines, sustainability goals.

Rising demand, evolving responsibilities

The scale of growth is unprecedented. As of 2024, APAC was home to more than 1,800 data centres with approximately 12.2 gigawatts (GW) of live capacity. This figure is expected to more than double by 2028, positioning the region to surpass other global markets before 2030.

This surge is fuelled by the growing demand for AI workloads and expanding digital services, alongside government-led ambitions for low-latency, sovereign AI compute capacity. Markets such as Japan, India, Malaysia, Australia, and Indonesia are spearheading this expansion, buoyed by incentives and strong private sector investment.^[1]

Reframing the narrative: Innovation as a catalyst for sustainable growth

Amid rapid expansion, the environmental impact of data centres has drawn scrutiny. Today, they account for approximately 1.5% of global electricity consumption^[2] – a significant figure but also an oversimplification of a much more complex reality.

Data centres underpin the digital economy, powering everything from AI breakthroughs to cloud services. Their continued evolution has been marked by substantial gains in energy efficiency, increased adoption of renewable power, and investments in advanced cooling systems. While AI has accelerated demand for high-performance computing, it has also spurred innovation in sustainability.

At STT GDC, over 78% of our global energy consumption is already sourced from renewable energy as we work towards carbon-neutral operations by 2030. We were pioneers in Singapore in adopting hydrotreated vegetable oil (HVO) as a renewable fuel for backup generators, reducing lifecycle emissions by up to 90%. Our sustainability ethos is also embedded throughout our design philosophy – from optimised, energy-efficient power distribution to LEED and Green Mark Platinum certifications – setting benchmarks for low-carbon impact data centres.
 
Digital infrastructure development presents a unique opportunity to catalyse the low-carbon transition. When assessed by productivity and societal value created, the efficiency narrative is far more compelling than headlines suggest, demonstrating how digital growth can and must support sustainability goals rather than compromise them.
 

AI as a driver of sustainability

AI is both a catalyst for demand and an enabler for responsible management. Beyond enabling breakthroughs across industries such as manufacturing and logistics, AI enhances sustainability by optimising energy use and improving operational efficiency in data centres.

The graphics processing units (GPUs) that power AI workloads markedly outperform traditional central processing units (CPUs), delivering superior computational output per kilowatt-hour. AI-ready data centres generate greater computational value with equal or lower energy input, shifting the focus beyond raw power consumption towards holistic efficiency.

Real-world applications include the implementation of liquid and hybrid cooling to manage the thermal intensity of AI workloads. AI also enables predictive analytics, optimised maintenance, and adaptive thermal management. It can also enable seamless integration with renewable energy sources by dynamically adjusting energy use in response to solar or wind power availability – minimising wastage and enhance energy resilience.

This shift from reactive to proactive management represents a profound change, with AI optimising performance while embedding sustainability into digital infrastructure.
 

Building trust and enhancing social impact

Responsible operations extend beyond reducing carbon emissions. Across APAC, a persistent shortage of skilled professionals is widening the gap in AI-ready capacity. Workforce development through vocational training, certification programmes and hands-on learning must be integral to the sector’s social contract.

By prioritising local hiring and supply chains, operators can ensure that economic value is felt throughout the communities. This approach builds trust and goodwill, positioning data centres not merely as infrastructure providers but as committed partners in nation-building.
 

Synergistic partnerships between industry and government

Governments throughout the region are demonstrating decisive leadership. Initiatives such as Singapore’s Green Data Centre Roadmap, Malaysia’s Data Centre Standards and Certification framework, and India’s open access renewable energy rules illustrate how regulation can raise the bar while accelerating innovation. On a regional scale, the ASEAN Power Grid has the potential to transform renewable energy availability by enabling cross-border energy sharing and enhancing grid resilience.

Operators can align investments with these policies by adopting best-in-class technologies, reporting progress transparently, and co-developing locally tailored solutions such as sustainable cooling and low-carbon energy exploration projects. Joint efforts in research, workforce development, and smart infrastructure strengthen the ecosystem beyond individual facilities. Leveraging AI, automation, and smart grids further enhance planning, procurement, and operational efficiency.

Through coordinated action and continuous dialogue, governments and industry can build sustainable ecosystems that meet rising demand, and this collaboration is crucial to delivering scalable, long-term solutions.

Towards a shared sustainable future

With APAC projected to become the world’s largest colocation data centre market before 2030,^[3] the key question is: how will it get there?

Our collective responsibility as operators, regulators, and stakeholders is to ensure that growth is aligned with sustainability at every step. By embedding transparency, fostering public-private collaboration, and communicating clearly about the integral role of digital infrastructure in the low-carbon transition, we can assure society that digital growth will reinforce sustainability – while continuing to deliver the digital advancements that underpin modern life.

Data centres are the foundation of the digital economy and are pivotal enablers of the energy transition. With the right vision, collaboration and investment, we can build a digital future that is more connected, inclusive and sustainable.

These perspectives were initially developed for a Board Interview series with the Asia Pacific Data Centre Association (APDCA).

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[1] PwC. (2025). Powering possibility: Closing the clean energy gap for Asia Pacific data centres. PwC Global. Retrieved from https://www.pwc.com/gx/en/asia-pacific/pwc-asia-pacific-data-centres-clean-energy-gap-2025.pdf

[2] International Energy Agency. Energy and AI. Retrieved from https://www.iea.org/reports/energy-and-ai/energy-demand-from-ai  

[3] Cushman & Wakefield. (2025). Asia Pacific on track to overtake United States as the largest colocation data centre market before 2030. C&W Singapore. Retrieved from: https://www.cushmanwakefield.com/en/singapore/news/2025/06/asia-pacific-on-track-to-overtake-united-states-as-the-largest-colocation-data-centre-market