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APAC Sustainable Data Center Market Size & Share - Industry Outlook and Forecast 2026-2031 | AI and Renewable Energy Investments Propel Market to USD 57.18 Billion

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META Meta's planned AI-enabled data center in India, supported by significant solar and wind capacity, indicates investment and expansion in sustainable infrastructure. GOOGL Google is securing clean electricity through a long-term PPA for its hyperscale expansion in Malaysia, including a major campus, demonstrating commitment to renewable energy for its operations. AMZN Amazon Web Services (AWS) is investing in sustainable data center operations, including recycled-water cooling programs in Australia and plans for low-carbon concrete in Japan, aligning with sustainability goals. EQIX Equinix is deploying liquid cooling technology and has entered into a long-term PPA for solar power in Japan, indicating a focus on operational efficiency and renewable energy integration. AMAT While not directly mentioned, the article discusses advancements in AI and chip manufacturing infrastructure, which could indirectly benefit companies like Applied Materials involved in semiconductor equipment. NVDA The article highlights the increasing demand for AI workloads and AI-enabled data centers, which are key drivers for NVIDIA's GPU technology, though the company is not explicitly named. INTC The article's focus on AI and data center infrastructure implies a need for advanced computing components, a market segment where Intel operates, but the company is not directly mentioned. AMD The surge in AI and data center demand discussed in the article suggests potential benefits for AMD's processors and AI accelerators, although the company is not explicitly cited. MSFT Microsoft is listed as a prominent data center investor in APAC, indicating its significant role and investment in the growing sustainable digital infrastructure market. AAPL Apple is identified as a key investor in the APAC sustainable data center market, suggesting its commitment to expanding its infrastructure in line with sustainability trends. BABA Alibaba is listed as a prominent data center investor. While it has ADRs on the NYSE, its primary listing is in Hong Kong, and the article doesn't provide specific US-focused sentiment.

APAC Sustainable Data Center Market Size & Share - Industry Outlook and Forecast 2026-2031 | AI and Renewable Energy Investments Propel Market to USD 57.18 Billion 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:

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.

Australia benefits from renewables accounting for approximately 52% of its power mix, while India is attracting hyperscaler, colocation, renewable energy, and green financing investment. Malaysia is developing into a major hyperscale hub, with Johor projected to represent nearly 60% of the country's total data center capacity by 2030. Indonesia, Thailand, South Korea, the Philippines, and Vietnam are also gaining importance as operators evaluate power availability, grid capacity, water resources, cooling efficiency, and renewable energy access.

Competitive Landscape

The APAC sustainable data center market includes hyperscale cloud providers, colocation operators, telecommunications companies, infrastructure developers, utilities, and renewable energy suppliers. Prominent data center investors include Amazon Web Services, Alibaba Group, 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.

Renewable energy providers supporting market expansion include Adani Green Energy, AGL Energy, AMP Energy, AMPIN Energy Transition, Avaada Energy, CleanMax, EDF Power Solutions, EDP, ENEOS Renewable Energy, First Gen Corporation, JERA, MPower, Sembcorp Industries, TotalEnergies, and Vena Energy.

Recent agreements illustrate the growing cooperation between these sectors. ST Telemedia Global Data Centres Philippines signed an agreement with MPower for up to 40 MW of renewable electricity, while Equinix entered a 15-year vPPA with ENEOS Renewable Energy for 121 MW of solar power in Japan. The report identifies these partnerships, along with efficient cooling, green financing, and measurable net-zero strategies, as critical to the continued expansion of sustainable digital infrastructure across APAC.

Key Attributes:

A selection of companies mentioned in this report includes, but is not limited to:

For more information about this report visit https://www.researchandmarkets.com/r/t3o8r7

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