Solar, wind energy could power a third of Asean data centres in 2030: report

[SINGAPORE] Solar and wind energy could power up to a third of data centres in South-east Asia in 2030 via power grids and without the need for batteries, said a report by energy think-tank Ember.

“This indicates that high battery costs are not an immediate barrier to adopting these electricity sources for data centres,” said Ember, which made the forecast based on estimates of power consumption and solar and wind capacity.

South-east Asia is emerging as a data centre hub, but the International Energy Agency has forecast that regional data centres’ electricity usage will nearly double by 2030, from 2024 levels.

The six major regional economies – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – have 2.9 gigawatts (GW) of data centre capacity in the pipeline, Ember noted in the report.

It expects data centres to account for between 2 per cent and 30 per cent of national electricity demand by 2030 in each of these countries.

Malaysia is at the upper end of the range. The country’s demand for data centre electricity is projected to rise from 9 Terawatt-hour (TWh) in 2024 to 68 TWh in 2030 – accounting for 30 per cent of national power consumption and exceeding Singapore’s total 2023 electricity use.

As at February 2025, Malaysia hosts 507 megawatts (MW) of operational data centre capacity, mostly in Johor. This is expected to grow to 1.96 GW of installed capacity in the coming years, Ember noted.

The think tank forecasts that the resulting emissions from Malaysia’s data centres could hit 40 million tonnes of carbon dioxide equivalent (MtCO2e) by 2030, the highest in the region. This is especially since the country’s power supply is dominated by coal and gas.

Indonesia’s data centre emissions are expected to quadruple in the same period, from 6.7 TWh in 2024 to 26 TWh by 2030. The country hosts 307 MW of operating data centre capacity as at February 2025, primarily in greater Jakarta, but also increasingly in Batam.

Meanwhile, data centre emissions from the Philippines are expected to rise by 14 times, from 0.8 MtCO2e in 2024 to 10.5 MtCO2e by 2030. This comes as data centre capacity is set to hit 300 MW by 2025.

Globally, the information, communication and technology sector is estimated to account for up to 2.1 to 3.9 per cent of greenhouse gas emissions, comparable to Indonesia’s 3.6 per cent share of global emissions in 2023, Ember noted.

This figure is set to rise with growing demand for data storage, processing and generative artificial intelligence.

Solar, wind opportunity

Ember believes that South-east Asia can power data centres without raising emissions, if there is the right policy support, market access and infrastructure planning.

It estimated that between US$45 billion and US$75 billion will need to be invested in solar and wind capacity by 2030 to power the region’s data centres sustainably.

Clean energy is already gaining traction in the region. For instance, Malaysia is developing a 1,000 MW solar farm to power the Johor-Singapore special economic zone.

“Prioritising solar and wind power… would help ensure data centres drive sustainable digital growth rather than deepen reliance on fossil fuels,” said Shabrina Nadhila, Ember’s Asia energy analyst.

Ember also called for options for smaller data centre operators to procure clean energy. This could include virtual power purchase agreements (PPAs) and green tariffs, where utilities companies offer electricity from renewable sources.

“Expanding these options can improve access to and affordability of solar and wind, while broader programs and targeted incentives can accelerate storage adoption alongside intermittent renewables,” said Ember.

Energy efficiency

Beyond renewable energy, it will also be crucial for data centres to implement energy efficiency measures from the design phase, said Ember.

For instance, optimising air flow in the data centre lowers electricity requirements to run fans for cooling. Immersion cooling can also reduce power consumption by 40 per cent compared to traditional cooling methods, it noted.

The think tank highlighted Singapore for incentivising the adoption of green data centre technologies. It called for more targeted incentives in South-east Asia, as well as national frameworks to guide sustainable data centre development.