APAC Sustainable Data Center Market To Reach USD 57.18B By 2031 - Arizton

(MENAFN- Market Press Release) September 2, 2026 3:19 am - According to recent research by Arizton, the APAC sustainable data center market size was valued at USD 16.74 billion in 2025 and is expected to reach USD 57.18 billion by 2031, growing at a CAGR of 15.43% during the forecast period.

According to Arizton, 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, growing at a 15.43% CAGR. Growth is driven by cloud adoption, AI workloads, digitalization, and hyperscale expansion. Operators are increasingly adopting PPAs, renewable energy certificates, green financing, and on-site solar to reduce emissions and secure long-term power.

Sustainable financing is becoming an important market enabler. Major transactions include Digital Edge and B.Grimm Power's $880 million green loan for Thailand's 100 MW BKK Campus and STACK Infrastructure's $890 million green financing for its MEL01 campus in Australia. Key markets include China, Japan, Singapore, Australia, India, and Southeast Asia.

Market Overview
2025 Market Size: USD 16.74 Billion
2031 Market Size: USD 57.18 Billion
CAGR: 15.43%
2031 Power Capacity: 5,190 MW
Historical Period: 2022–2024
Base Year: 2025
Forecast Period: 2026–2031
Coverage: Infrastructure and Geography
Geography: APAC and Southeast Asia

The market's power capacity is expected to reach 5,190 MW by 2031, supported by rising AI, cloud, and digital workloads. Growing electricity demand is encouraging investments in solar, wind, hydro, battery storage, captive power, and other low-carbon energy sources. Southeast Asia's data center electricity consumption is expected to nearly double by 2030 from 2024 levels.

Recent Developments
Adani Group announced a $100 billion investment in renewable-powered hyperscale AI-ready data centers in India by 2035, expanding its platform from 2 GW to 5 GW.
AWS announced $13 billion for Australian data center expansion by 2029, supported by approximately 990 MW of renewable energy through nine PPAs and three new solar farms.
China launched a 24 MW offshore wind-powered underwater AI data center near Shanghai in 2026, backed by approximately $226 million and achieving PUE below 1.15.
Digital Edge secured a $665 million green loan for the first phase of its 500 MW CGK Campus in Indonesia, part of a $4.5 billion multi-phase investment.
Equinix signed an agreement with Sembcorp Power for 58.5 MWp of solar energy for its Singapore data centers from 2029.
Key Trends & Opportunities

Renewable Energy Integration: Renewable power procurement, on-site generation, and energy partnerships are becoming increasingly important across APAC. Meta's Jamnagar AI data center in India is supported by nearly 1 GW of clean energy, including 837 MW from CleanMax and 88 MW from Fourth Partner Energy.

Advanced Cooling: AI workloads are accelerating adoption of liquid cooling, free cooling, seawater cooling, and recycled-water systems. China's underwater data center, Keppel's floating data center in Singapore, and AWS's recycled-water initiative in Australia demonstrate the region's focus on resource-efficient cooling.

Hyperscale & AI Expansion: Large AI-ready campuses are expanding across India, Malaysia, Thailand, Singapore, Australia, and Japan. Google's Malaysia expansion is supported by a 21-year renewable PPA with TotalEnergies covering approximately 1 TWh of clean electricity and its $2 billion Elmina hyperscale campus.

Meta and Reliance are also developing a 168 MW AI-enabled data center in Jamnagar, supported by 1 GW of new renewable energy and desalinated seawater cooling.

Net-Zero & ESG: Operators including AirTrunk, NTT DATA, PDG, and DayOne are pursuing significant emissions reductions or net-zero operations by 2030–2040. PDG targets 1.2–1.4 PUE for new greenfield facilities, while Equinix targets a 1.33 global PUE by 2030.

Market Restraints

Carbon Emissions: APAC could account for more than 40% of global data center capacity by 2030, while approximately 49% of its energy supply comes from coal. AirTrunk reported a 25.4% increase in direct operational and purchased electricity emissions in FY25 versus its FY22 baseline, highlighting the challenge of balancing rapid expansion with decarbonization.

Water Scarcity: Advanced cooling is increasing pressure on water resources. In 2025, Malaysia approved only 142.06 MLD of the 808 MLD requested for 101 data centers across Johor, Selangor, and Negeri Sembilan-less than 18% of requested supply. This is increasing interest in reclaimed water, seawater, recycling, and closed-loop cooling.

Segmentation Analysis

Infrastructure: General construction held the largest share at approximately 41% in 2025, covering site preparation, core and shell development, commissioning, design, security, and DCIM. Design costs typically account for 4%–5% of total expenditure. AWS plans to use low-carbon concrete in future Tokyo and Osaka facilities, with selected technologies reducing embodied carbon by up to 64%.

Mechanical Infrastructure: This segment is expected to record the highest growth during the forecast period, driven by liquid cooling, free cooling, and AI-based cooling optimization. Equinix uses liquid cooling at SG5 in Singapore, while AirTrunk uses Indirect Evaporative Cooling at facilities including SYD2 and MEL1.

Geographic Analysis

China dominates the APAC sustainable data center market with more than 30% share, supported by large-scale capacity, renewable energy adoption, and green infrastructure initiatives.

Japan and Singapore are mature markets with advanced digital infrastructure and growing renewable energy procurement. South Korea is investing in hydrogen energy hubs, underwater cooling, renewable energy, and storage.

Australia has favorable conditions for sustainable data centers, with renewables accounting for approximately 52% of its power mix.

India is emerging as a major sustainable market through hyperscaler investment, renewable energy, and green financing.

Malaysia is becoming a key hyperscale hub, with Johor expected to account for nearly 60% of Malaysia's total data center capacity by 2030.

The market is gradually expanding from established hubs such as China, Japan, and Singapore toward renewable- and power-advantaged markets including Australia, India, Malaysia, Indonesia, and Thailand. Renewable power, water availability, grid capacity, and efficient cooling are increasingly influencing site selection.

Vendor Landscape

Key companies include AWS, Alibaba, Apple, Google, Microsoft, Meta, Equinix, Digital Realty, AirTrunk, NTT DATA, Keppel Data Centres, Digital Edge DC, Princeton Digital Group, ST Telemedia Global Data Centres, NEXTDC, STACK Infrastructure, Vantage Data Centers, YTL Data Center, Nxera, AdaniConneX, and CtrlS Datacenters.

In June 2025, DayOne secured $3.5 billion in green financing for sustainable data center campuses in Johor, with new facilities targeting LEED Gold or higher. In April 2026, STT GDC Philippines secured up to 40 MW of renewable electricity from MPower. In February 2026, Equinix signed a 15-year vPPA with ENEOS Renewable Energy for 121 MW of solar power in Japan.

Key Questions Covered

The report analyzes the APAC sustainable data center market size, growth rate, key trends, 2031 power capacity, and leading country by market share, while examining the technologies, investments, and sustainability strategies shaping the region's data center development.

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