Data centres threaten clean energy supply - Asian Power
Published November 24, 2025
Data Centres Pose Challenges to Clean Energy Supply
In recent years, the rapid expansion of data centres across Asia has raised significant concerns regarding their impact on the region's clean energy supply. As the demand for digital services continues to surge, data centres are consuming increasing amounts of electricity, much of which is generated from non-renewable sources. This trend poses a threat to the region's efforts to transition to a sustainable energy future.
According to a report from the International Energy Agency (IEA), data centres currently account for approximately 1% of global electricity consumption. This figure is projected to rise dramatically in the coming years, driven by the growing use of cloud computing, artificial intelligence, and the Internet of Things (IoT). The IEA estimates that electricity consumption by data centres could reach 3-4% of global demand by 2030 if current trends continue.
In Asia, the situation is particularly pressing. The region is home to some of the world's largest data centres, with countries like China, India, and Japan leading the way in terms of capacity. For instance, China alone is responsible for nearly 50% of the global data centre market, with a total capacity of over 200 gigawatts (GW). This rapid growth has significant implications for the region's energy landscape, especially as many Asian countries are still heavily reliant on coal and other fossil fuels for electricity generation.
The increasing energy demands of data centres are straining existing power grids, leading to heightened competition for clean energy resources. As governments and private companies invest in renewable energy sources, the allocation of these resources becomes increasingly contested. In many cases, data centres are competing directly with residential and industrial consumers for access to clean energy, undermining efforts to decarbonize the power sector.
Furthermore, the environmental impact of data centres extends beyond their energy consumption. The construction and operation of these facilities also generate significant amounts of greenhouse gas emissions. According to a study by the Global Climate Action Initiative, data centres are responsible for an estimated 2% of global carbon emissions, a figure that could rise if their energy consumption continues to escalate.
To mitigate these challenges, several Asian countries are implementing policies aimed at promoting energy efficiency and increasing the share of renewables in their energy mix. For example, Singapore has introduced a Green Data Centre Standard, which aims to encourage the adoption of energy-efficient technologies and practices within the data centre sector. Similarly, Japan is investing in advanced cooling technologies and renewable energy sources to reduce the environmental impact of its data centres.
Despite these efforts, the pace of growth in the data centre sector continues to outstrip the development of clean energy resources. A recent report from the Asia Pacific Energy Research Centre highlights the need for a coordinated approach to energy planning that takes into account the specific requirements of data centres. This includes integrating renewable energy generation with energy storage solutions and demand response strategies to ensure a reliable supply of clean energy.
Moreover, industry stakeholders are increasingly recognizing the importance of sustainable practices within the data centre sector. Leading technology companies, such as Google and Microsoft, have committed to achieving carbon neutrality in their operations, including their data centres. These companies are investing heavily in renewable energy projects and energy efficiency initiatives, setting a precedent for others in the industry to follow.
However, the transition to a more sustainable data centre model will require collaboration among various stakeholders, including governments, energy providers, and technology companies. Policymakers must create an enabling environment that encourages investment in renewable energy and energy-efficient technologies, while also addressing the growing energy demands of the data centre sector.
In conclusion, the rapid growth of data centres in Asia presents significant challenges to the region's clean energy supply. As electricity consumption continues to rise, it is essential for governments and industry leaders to work together to ensure that the expansion of data centres does not compromise efforts to transition to a sustainable energy future. By prioritizing energy efficiency and investing in renewable energy sources, the region can mitigate the environmental impact of data centres while supporting the growth of the digital economy.
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