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The digital engine-room: Unlocking APAC’s economic and
digital potential through data centres
virtual PPAs and engage in renewable
energy projects in Malaysia.
• In 2024, renewable energy accounted for
78.5% of the electricity consumption
across STT GDC’s global portfolio, which
includes key markets such as India and
Singapore. In India, STT GDC partnered
with several of the country’s leading
renewable energy providers to develop
new solar and wind farms and achieved
60% consumption from renewable
energy sources. This green energy is
delivered to its India data centres
through long-term PPAs, ensuring a
stable and sustainable energy supply. In
Singapore where renewable energy
supply is limited, STT GDC deploys solar
photovoltaic systems at its sites where
feasible.
Optimising site selection
Site selection is a critical component in ensuring
data centre energy sustainability. Typically, data
centre developers select sites based on factors
such as availability of free cooling, power reliability,
proximity to population centres (to access a skilled
workforce), resilience to climate change or natural
disasters, options for renewable energy, and taxes,
incentives, and regulations.
Several APAC governments have aimed to support
the location of data centres to strategically chosen
sites, which can lead to more efficient energy use.
For example, data centres located near renewable
energy sources, such as wind or solar farms, can
benefit from lower transmission losses and the
availability of cheaper renewable energy. Where this
is feasible, proximity to renewable energy sources
also allows data centres to deploy local renewable
energy sources, usually resulting in lower
operational costs that will in turn promote greater
energy efficiency. At the same time, to meet the
economy’s demands for digital infrastructure,
operators must also build in response to where
there is customer demand. Locations away from
metropolitan areas are most suitable for low-latency
use cases, such as AI training.
Japan: METI subsidies
supporting data centre location
near renewable energy sources
Japan offers incentives for the location of data
centres near carbon-neutral energy hubs, such
as offshore wind farms and nuclear plants.
Through subsidy programmes by the Ministry of
Economy, Trade, and Industry (METI), the
government is pushing for locating data centres
in places like Hokkaido, Japan’s northernmost
island that boasts abundant renewable energy
resources, and Kyushu, which is similarly
recognised for its renewable energy sources.
Design
Efficient cooling
Data centres generate large output of heat – high
temperatures can cause IT equipment to overheat,
causing breakdowns and costly downtime. Data
centres therefore require efficient cooling strategies
to maintain the IT infrastructure at an ideal
temperature and ensure optimal performance. As
the region transitions to support large-scale AI
workloads that generate immense heats, high-
density, AI-ready cooling strategies are increasingly
crucial for energy optimisation.
Common cooling methods include:
• Air cooling systems: which use air
conditioning, fans, and vents to circulate
ambient air, expelling the heat generated by
the computing equipment;
• Liquid cooling solutions: which replaces air
with a fluid-based method to, absorb heat
away from IT equipment; key types of liquid
cooling include liquid-to-chip cooling
(directly cools components with fluids) and
immersion cooling (submerges IT
infrastructure components in dielectric
fluids that absorb heat);
• Evaporative cooling: which draws outside
air in, cooling it before directing it to IT
equipment, with efficient heat absorption
via water evaporation;
• Free cooling: which uses cooler outdoor air
or water for heat removal; and
• Hybrid approaches: which combine
multiple cooling technologies.