One-third of data centers in Southeast Asia could potentially rely on renewable energy sources by the year 2030, according to a recent study.
In the rapidly growing data center industry of Southeast Asia, the shift towards renewable energy has been a gradual process, despite ambitious commitments from major tech companies. This is evident as the region's data centers remain heavily reliant on fossil fuels for electricity.
However, several policies and strategies are being implemented or proposed to boost the use of renewable energy in the data center sector, thereby reducing reliance on fossil fuels and supporting the region's AI boom.
Investment in renewable energy is a key strategy, with an estimated $45–75 billion in solar and wind investment needed by 2030 to power Southeast Asia's data centers sustainably. Policies aim to improve access to renewable energy sources, enabling data centers of all sizes to adopt cost-effective clean energy solutions.
A proposed national framework, the National Green Data Centre Framework, could accelerate the adoption of renewables and efficiency in data centers, boosting demand for clean energy producers and efficiency providers.
Data centers are adopting advanced cooling technologies to reduce energy consumption and environmental impact, while operators are forming partnerships to integrate renewable energy into their operations, managing costs and meeting sustainability goals.
Plans are underway for full Southeast Asia power grid integration by 2045, aiming to meet surging demand while reducing emissions through cross-border links. Governments are offering regulatory support in emerging markets like Johor, Malaysia, encouraging sustainable data center development.
There is a growing focus on using AI to address climate challenges in Southeast Asia, including data center operations. By harnessing AI for sustainability, the region can build a clean digital infrastructure that attracts global capital and accelerates national climate goals.
Despite these strategies, Southeast Asia's booming data center market faces challenges such as straining energy and water resources. However, the region also presents opportunities for innovation and growth by building a clean digital infrastructure.
Major tech companies like Google, Amazon Web Services, and Meta have made ambitious commitments to renewable energy, but their progress in Southeast Asia has been slow. Developers in Malaysia and Thailand are the biggest issuers of RECs in Southeast Asia, while Singapore has an estimated solar potential of 2 GW for its data centers.
Singapore is a significant player in the issuance of renewable energy certificates (RECs), though its renewable energy output is minimal. Countries with lower current installed capacity can make use of RECs to maximize the utilization of clean energy potential.
For instance, Amazon Web Services has contracted 274MW of renewable capacity in Indonesia and Singapore, while Meta met its 100% renewables target in 2020 and procures 174MW of solar and wind energy in Singapore.
Power purchase agreements (PPAs) are needed to accelerate solar and wind deployment and attract more private capital for clean energy generation, storage facilities, and grid modernization. By 2030, data centers in Southeast Asia will account for up to 30% of the region's power demand.
Despite these efforts, the current utilization of renewable energy in Southeast Asia's data centers is low. For example, Google sources only 0.15% of its total electricity consumption from renewable energy in Southeast Asia, highlighting the need for continued efforts to increase the use of renewable energy in the region's data centers.
References: [1] Greenpeace Southeast Asia. (2021). Powering the Future: Southeast Asia's Data Centers and the Clean Energy Transition. Retrieved from https://www.greenpeace.org/seasia/wp-content/uploads/2021/05/Powering-the-Future-SEAsia-Data-Centers-and-the-Clean-Energy-Transition-2021.pdf [2] Green Data Centre Alliance. (2021). The Green Data Centre Alliance Southeast Asia Report. Retrieved from https://www.greendatacentre.org/wp-content/uploads/2021/05/GDCA-Southeast-Asia-Report-2021.pdf [3] Greenpeace Southeast Asia. (2020). Clicking Clean: Google's 2020 Scorecard. Retrieved from https://www.greenpeace.org/seasia/wp-content/uploads/2020/10/Clicking-Clean-Google-2020-Scorecard.pdf [4] Greenpeace Southeast Asia. (2020). Powering the Future: Southeast Asia's Data Centers and the Clean Energy Transition. Retrieved from https://www.greenpeace.org/seasia/wp-content/uploads/2020/07/Powering-the-Future-Southeast-Asia-Data-Centers-and-the-Clean-Energy-Transition.pdf [5] ASEAN. (2021). ASEAN Power Grid. Retrieved from https://aseanpowergrid.org/
- To meet the increasing electricity demand of data centers in Southeast Asia, a targeted investment of $45–75 billion in solar and wind energy is estimated by 2030, aimed at fostering sustainable power for the region's data centers.
- The National Green Data Centre Framework, a proposed national policy, aims to expedite the adoption of renewable energy and energy efficiency in data centers, thereby stimulating demand for clean energy producers and service providers.
- In a concerted effort towards sustainability, data centers are integrating advanced cooling technologies and forming partnerships to incorporate renewable energy into their operations, balancing costs and achieving sustainability goals.
- Forward-thinking strategies are being implemented across Southeast Asia, such as the integration of a full power grid by 2045 and the offering of regulatory support in emerging markets like Johor, Malaysia, to accelerate sustainable data center development.
- Artificial Intelligence (AI) is gaining traction in Southeast Asia as a powerful solution to combat climate change, with potential application in data center operations, enabling the construction of a clean digital infrastructure that benefits from global capital inflow and promotions of national climate goals.
- Strained energy and water resources pose challenges for Southeast Asia's growing data center market, but present opportunities for innovation and more efficient use of resources in the development of a clean digital infrastructure.
- While major tech companies like Google, Amazon Web Services, and Meta have made significant commitments to renewable energy, their progress in Southeast Asia is slow. However, countries like Malaysia and Thailand top the renewable energy certificate (REC) issuance, while Singapore has significant solar potential for its data centers, offering opportunities to maximize clean energy utilization.
