Closing the clean energy gap for Asia Pacific data centres

Driven by soaring demand for AI, cloud and advanced digital services, data centres across Asia Pacific are expanding rapidly – and so is their need for power. Electricity consumption is expected to climb from 320 terawatt-hours in 2024 to 780 terawatt-hours by 2030. Yet only 32% of that demand will be met by renewable energy. The gap is significant – and closing it is critical.

This is more than an energy challenge. It’s a connectivity challenge. Grid infrastructure needs to evolve, expanding and adapting to manage fluctuating demand and diverse energy sources.

Governments are raising the bar. Ambitious carbon neutrality targets are reshaping policies, incentives and regulations, influencing where and how data centres are designed, built and powered.

Meeting these challenges will take more than incremental change. Operators need to accelerate adoption of alternative energy – from hydrogen and ammonia to nuclear – backed by large-scale storage solutions. More efficient power and water usage, combined with innovative cooling, will also be essential.

Financing the shift will take a mix of strategies. Alongside equity and project finance, leaders need to explore options like corporate funding, private credit, mezzanine financing and bonds. Recycling capital through the sale of stabilised assets can also free up funds for new development and draw in yield-focused investors.

The message is clear. Solving this will take bold, collective action. Collaboration across energy, infrastructure, policy and finance is the only way to embed sustainable, reliable power into the digital backbone of the region. Realising the full potential of AI and cloud technologies depends on it – and with the right action, Asia Pacific’s data centres can set the global standard for what’s possible: resilient, future-ready and sustainable. Now is the time to act.