Published on April 4, 2024, 9:30 pm

Mordor Intelligence estimates that the Asia-Pacific data centre market is projected to grow from 14.27 thousand MW in 2024 to 23.20 thousand MW by 2029. JLL foresees an increasing rank density, notably among hyperscalers, in response to the rising demand for computational power.

Amidst a heightened focus on sustainability and climate change, data centres face the challenge of aligning with customers’ net zero emissions targets while meeting demand. Operators are exploring ways to save energy while maintaining optimal operating conditions for their equipment.

Terry Miaolo, VP & GM for APAC at OVHcloud, notes a rapid adoption of digital transformation in the region driven by the need for substantial computing power associated with AI and IoT technologies, leading to a surge in regional data centres with primary targets being Sydney, Singapore, and Tokyo.

Singapore and Tokyo face pressure due to low vacancy rates (<2%), prompting consideration of emerging markets like Thailand, Malaysia, and Indonesia as viable alternatives. To sustain Singapore's position as a preferred choice, providers must prioritize sustainability by enhancing processing efficiency and computing practices.

One key concern highlighted by Miaolo is the environmental impact of data centres, focusing on energy consumption, water usage, and space constraints. Cooling data centres alone can require significantly more power compared to typical commercial spaces, emphasizing the need for sustainable practices.

AI's integration into data centre operations poses challenges with carbon emissions on the rise. Apart from increasing electricity consumption, AI technologies lead to substantial water usage impacting environmental sustainability efforts in places like Hong Kong and Singapore.

As AI workloads shift towards the cloud, there is a notable increase in carbon emissions requiring operators to reevaluate their practices regarding material usage and energy consumption within data centres to mitigate environmental impact effectively.

In navigating evolving trends like data sovereignty regulations and growing emphasis on sustainability over traditional aspects like price and performance, businesses are seeking providers that excel in sustainability practices while offering flexibility and openness in technology solutions.

Looking ahead, sustainability is poised to become a focal point alongside performance and scalability in the data centre market. Miaolo emphasizes that greener operations will hold equal importance moving forward as industry leaders recognize the significance of environmental considerations.

To delve deeper into operational strategies for sustainable data centres from Miaolo’s perspective or listen to his insights on staying ahead of trends in this space, you can explore more via PodChats for FutureCIO platform.


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