APAC Sustainable Data Center Market Size & Share - Industry

Dublin, Oct. 13, 2026 (GLOBE NEWSWIRE) -- "APAC Sustainable Data Center Market - Industry Outlook & Forecast 2026-2031" has been added to ResearchAndMarkets.com's offering.

APAC Sustainable Data Center Market to Reach USD 57.18 Billion by 2031

The APAC sustainable data center market was valued at USD 16.74 billion in 2025 and is projected to reach USD 57.18 billion by 2031, expanding at a CAGR of 22.72%, according to the report. Installed power capacity is expected to reach 5,190 MW by 2031 as artificial intelligence, cloud computing, digitalization, and hyperscale infrastructure increase electricity requirements across the region.

Data center operators are responding to grid constraints and sustainability targets by investing in utility-scale solar, wind, hydroelectric power, captive generation, battery energy storage, and alternative low-carbon fuels. Long-term Power Purchase Agreements (PPAs) are also becoming central to renewable energy procurement. The International Energy Agency expects Southeast Asia's data center electricity consumption to nearly double by 2030 compared with 2024, underscoring the need for reliable, resilient, and lower-carbon power infrastructure.

Renewable Energy and AI Infrastructure Drive Market Growth

Renewable energy integration is reshaping APAC data center development. Operators are combining clean energy procurement, on-site generation, and strategic partnerships to improve energy resilience and reduce operational emissions. Meta's planned AI-enabled data center in Jamnagar, India, developed with Reliance Industries, is expected to receive renewable power supported by nearly 1 GW of solar and wind capacity.

Google is supporting its hyperscale expansion in Malaysia through a 21-year renewable power purchase agreement with TotalEnergies. The agreement will secure approximately 1 TWh of clean electricity from the Citra Energies solar plant for operations that include Google's $2 billion campus in Elmina, Selangor.

Several major investments demonstrate the scale of regional demand:

Adani Group announced a $100 billion investment in renewable-energy-powered, AI-ready hyperscale data centers across India through 2035, with plans to expand capacity from 2 GW to 5 GW.

Amazon Web Services announced a $13 billion investment in Australian data center infrastructure through 2029, supported by approximately 990 MW of renewable energy under nine PPAs and investments in three solar farms.

Digital Edge secured a $665 million green loan for the first phase of its planned 500 MW CGK Campus in Bekasi, Indonesia.

DayOne secured a $3.5 billion multicurrency green financing package to develop sustainable data center campuses in Johor, Malaysia.

Equinix signed a renewable energy agreement with Sembcorp Power for 58.5 MWp of solar energy in Singapore beginning in 2029.

Advanced Cooling Technologies Support High-Density Workloads

Liquid cooling, free cooling, seawater-based cooling, recycled-water systems, and AI-driven optimization are becoming essential to sustainable data center operations. These technologies are designed to support high-density AI workloads while improving Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).

China's 24 MW offshore wind-powered underwater AI data center near Shanghai uses natural seawater for cooling and reports a PUE below 1.15. Other regional initiatives include Keppel's floating data center concept in Singapore, AWS's recycled-water cooling program in Australia, and Equinix's liquid cooling deployment at its SG5 International Business Exchange facility. AirTrunk also uses Indirect Evaporative Cooling across hyperscale facilities in Sydney and Melbourne to reduce energy and water consumption.

Market Challenges Include Carbon Emissions and Water Scarcity

Coal still represents approximately 49% of APAC's energy supply, creating a significant emissions challenge as the region moves toward potentially accounting for more than 40% of global data center capacity by 2030. AirTrunk reported a 25.4% increase in direct operational and purchased electricity emissions in FY25 compared with its FY22 baseline, illustrating the difficulty of reducing emissions while responding to AI and cloud demand.

Water availability is another constraint. In 2025, Malaysia approved less than 18% of requested data center water supply, granting 142.06 million liters per day from requests totaling 808 million liters per day across 101 facilities in Johor, Selangor, and Negeri Sembilan. This shortfall is accelerating the adoption of reclaimed water, seawater, closed-loop systems, and low-water or water-free cooling technologies.

Infrastructure and Regional Market Analysis

General construction represented approximately 41% of the APAC sustainable data center market in 2025. Sustainability is influencing building materials, design, site preparation, commissioning, security systems, and data center infrastructure management. AWS, for example, plans to use low-carbon concrete for future facilities in Tokyo and Osaka, with selected technologies reducing embodied carbon by up to 64% compared with conventional concrete.

Mechanical infrastructure is expected to record the highest growth during the forecast period, supported by demand for liquid cooling, free cooling, and automated thermal management. These systems are increasingly important as rack densities rise and operators pursue lower PUE targets.

China holds more than 30% of the regional market, supported by extensive capacity, green digital infrastructure policies, renewable power adoption, and energy-efficient technology. Japan and Singapore remain mature markets with stringent sustainability requirements and expanding renewable energy procurement.