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Data centers risk grid strain in Asia Pacific

Deloitte has released a report titled “Powering Asia Pacific’s Data Centre Boom,” which forecasts a significant rise in data centre investments across the region, potentially reaching $800b by 2030. The report emphasises the importance of integrating clean energy strategies to manage the anticipated surge in electricity demand and avoid grid congestion.

Asia Pacific is poised to become a global data centre hub, with China, Japan, and Singapore already established as major centres. Emerging markets such as Australia, India, and Malaysia are also experiencing rapid growth. The report warns that without coordinated planning, the expansion could lead to grid connection delays and increased price volatility. However, by adopting a “power-first” approach, data centres can support grid stability and accelerate the transition to clean energy.

Will Symons, Deloitte Asia Pacific Sustainability Leader, stated, “AI, cloud and digital connectivity is surging, driving massive new investments in energy-intensive data centres. Across the region electricity grids are already under pressure to decarbonise and maintain affordability, resilience and security.”

The report suggests several strategies for sustainable growth, including the use of diverse clean energy sources, co-location near renewable resources, and integrating storage and grid support services. These measures aim to align data centre development with regional climate goals and energy policies.

K Ganesan Kolan De Velu, Sustainability & Emerging Assurance Leader at Deloitte Southeast Asia, highlighted the potential for Southeast Asia to lead in data centre growth by matching digital expansion with clean energy systems. This approach could enhance competitiveness and drive decarbonisation efforts across the region.

This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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