The Digital Engine Room: Unlocking APAC’s Economic and Digital Potential through Data Centres

APDCA published a white paper highlighting the strategic role of data centres in powering Asia-Pacific’s economic and digital future. It demonstrates the broad-based benefits that data centres deliver for individuals, businesses and governments alike. To capture the region’s economic and digital opportunity, this paper offers a policy roadmap centred on four pillars – Enable, Compete, Uplift, and Anticipate – that together lay the foundation for maximising the impact of data centres as essential infrastructure.

1. Unlocking APAC’s
economic and digital
potential through
data centres
Asia-Pacific Data
Centre AssociationThe digital engine-room:

2. 2

Contents
Executive Summary 03

Introduction 04

1. Data centres: unlocking APAC’s economic and digital potential 05

1.1 Driving job creation and economic opportunity

1.2 Unlocking APAC’s digital and AI potential

1.3 Attracting clusters of hi-tech innovation and investment

1.4 Generating tax revenue and supporting public services

1.5 Catalysing investment in energy infrastructure and accelerating the energy transition

2. Country spotlights: the economic opportunity of data centres 14

2.1 Australia

2.2 India

2.3 Malaysia

2.4 Japan

2.5 Singapore

3. Capturing the opportunity: a strategic policy roadmap to unlock APAC’s data centre potential 20

Conclusion 24



About the APDCA
The APDCA brings together leading commercial data centre operators in Asia-Pacific to shape policy pathways
and drive informed discussion about the systems and infrastructure needed to build a secure and sustainable
digital future.
Our members share the collective pursuit of strengthening modern, diversified, and resilient economies built on
data, innovation and ideas, through the development of a competitive market of future-proofed facilities and
services.
The members of the APDCA represent leading global data centre operators, including AirTrunk, Digital Realty,
Equinix, Global Switch, NTT Global Data Centers, Princeton Digital Group, ST Telemedia Global Data Centres,
Vantage Data Centers, STACK Infrastructure and EdgeConneX.

3. 3

Executive Summary
Data centres are no longer just the background of
digital life – they are the engine-rooms quietly
powering Asia-Pacific’s economic future. They
power the online services individuals rely on daily,
enable the digital transformation of businesses large
and small, support the modernisation of essential
public services, and underpin the adoption of cloud
computing and artificial intelligence across the
economy. As Asia-Pacific’s digital transformation
gathers pace, data centres are emerging as vital
strategic infrastructure – critical for the long-term
economic competitiveness of the region.
Their impact reaches far beyond their physical
footprint and direct contributions to GDP and
employment. Data centres generate significant
multiplier effects across the economy in several
important ways:
• Creating high-skilled jobs: from engineers
and technicians to cybersecurity experts, as
well as jobs created by data centre customers
in sectors like AI, fintech and digital services.
• Catalysing workforce development and
upskilling: data centres drive partnerships with
universities and training providers to equip
workers with in-demand skills in cloud, data,
and engineering, among others.
• Attracting both foreign and domestic
investment in hi-tech innovation clusters: as
their presence draws tech firms and startups
seeking reliable, scalable compute capacity.
• Contributing to public revenues through
taxation: generating long-term, stable revenue
to governments that can be reinvested into
infrastructure and services benefitting local
communities.
• Anchoring digital transformation: enabling
the digitalisation of services and business
functions across sectors like energy,
construction, cybersecurity and public services.
• Catalysing investment in energy
infrastructure and the transition to
renewables: by driving demand for reliable,
sustainable power and supporting the
development of grid infrastructure, renewable
energy projects and energy efficiency
innovations.
Governments across the region are taking notice.
Many have set ambitious goals to grow their digital
economies, with data centres playing a central role
in enabling these objectives. However, the sector’s
continued growth and wider contribution depend on
creating the right policy environment. Unlocking
Asia-Pacific’s economic and digital potential
through data centres requires practical solutions
that prioritise decisive, coordinated action and
speed.
This report, developed by the Asia Pacific Data
Centre Association (APDCA), outlines the
importance of data centres to economic
development and digitalisation in APAC. It offers a
strategic roadmap for maximising the economic
potential and impact of data centres through four
key pillars:
• Enable: Laying the policy and infrastructure
foundations for data centre growth
• Compete: Creating a globally attractive and
competitive environment
• Uplift: Leveraging the sector to deliver benefits
for individuals, communities, and businesses
• Anticipate: Future-proofing policy to capture
the next wave of digital infrastructure growth
Asia-Pacific stands at a pivotal moment in its digital
journey. Thoughtful collaboration between industry
and government to enable digital infrastructure will
help drive a more connected, competitive, and
resilient future. APDCA and its members remain
committed to working alongside governments
across the region to help make this vision a reality.

4. 4

Introduction
Data centres are the engine-room of the digital
world. These specialised facilities house the
computing infrastructure that enables the storage,
processing, and transmission of vast volumes of
data. From hyperscale data centres supporting
major cloud platforms to colocation facilities
providing flexible space to multiple businesses, they
come in different forms but share a common
purpose: powering the region’s digital economy.
Across Asia-Pacific, data centres have taken on
growing strategic importance as governments
pursue ambitious digital transformation agendas.
These initiatives aim to drive economic growth,
enhance public services, and foster innovation –
goals that depend on reliable, resilient digital
infrastructure. Today, data centres are recognised
as critical assets for connectivity, cloud services,
artificial intelligence, and a wide range of digital
applications that are reshaping economies
throughout the region. Increasingly, they are also
playing a key role in the region’s energy transition,
enhancing grid stability and enabling the adoption of
renewable energy.
This report outlines the economic contributions of
data centres in Asia-Pacific, showcasing what the
sector has achieved and exploring its potential to
further accelerate growth and digitalisation. It offers
a regional perspective enriched with focused
insights from selected APAC markets, drawing on
illustrative statistics and compelling case studies to
demonstrate impact through concrete examples.
International benchmarks are also included to
provide additional context and help frame the
region’s position and potential within the global
digital infrastructure landscape.
As digital transformation accelerates across APAC,
building a clear and objective picture of the strategic
economic role of data centres is increasingly
important for informing policymaking. This report
accordingly aims to provide policymakers and
stakeholders with a clear understanding of the
sector’s current and potential economic
contribution. By highlighting opportunities for
sustainable and inclusive growth, it seeks to inform
decisions that will help the region unlock the full
benefits of a connected and competitive digital
future.

5. 5

Data centres: unlocking APAC’s economic and
digital potential
In this section, we outline the economic contribution
of data centres to Asia-Pacific across five key areas:
1. Driving job creation and economic
opportunity: Data centres generate direct,
indirect and induced effects that collectively
support job creation and economic opportunity,
while building workforce capabilities. They offer
a pathway to highly skilled and remunerated
work for communities across the region.
2. Unlocking APAC’s digital and AI potential:
Data centres serve as the foundational
infrastructure of a nation’s computing power,
enabling digital transactions for individuals,
businesses, and governments alike. They are
not only critical to today’s digital economy –
they are also the launchpad for tomorrow’s AI-
driven growth, an increasingly vital factor in
national competitiveness, digital sovereignty,
and long-term resilience in an AI-enabled global
landscape.
3. Attracting clusters of hi-tech innovation and
investment: Data centres act as magnets for
high-tech industries, drawing a wide range of
firms – from software developers and cloud
service providers to AI research labs, fintech
innovators and e-commerce platforms – to
establish operations nearby.
4. Generating tax revenue and supporting
public services: Data centres generate
significant tax revenues that are used to support
the improvement and modernisation of public
services and utility infrastructure, delivering
tangible benefits for local populations across
the region.
5. Catalysing investment in energy
infrastructure and accelerating the energy
transition: Data centres drive sustained
demand for clean, reliable power – helping to
unlock investment in grid upgrades and
renewables, generating economic opportunities
across the growing green economy.
Driving job creation and
economic opportunity
Data centres generate a broad spectrum of
economic impacts, spanning direct, indirect, and
induced effects that collectively support job
creation and economic opportunity across the
Asia-Pacific region.
At their core, data centres create direct employment
opportunities for workers engaged by operators,
including roles in facility management, technical
maintenance, and specialised functions in heating
and cooling – critical to the smooth operation of
these complex infrastructures.
Beyond this, data centres stimulate significant
indirect employment through their extensive
procurement and supply chains. This demand
supports growth in local sectors such as
construction, engineering, and utility services –
sectors that grow as data centres build, upgrade,
and maintain their facilities. Moreover, increased
investment in renewable energy projects to power
data centres contributes to job creation in energy
generation and sustainability-related industries.
The income earned by those directly and indirectly
employed circulates throughout the economy,
supporting induced employment in sectors such as
retail, transport and leisure. This ripple effect
amplifies economic activity well beyond the
immediate data centre ecosystem, underscoring the
sector’s role as a catalyst for broader economic
opportunity throughout Asia-Pacific.

6. 6

A Kearney study found that in emerging markets,
many of which can be found in APAC, every USD 1
invested in IT and information services yields a USD
1.64 increase in GDP, underlining the strong
multiplier effect of data centre investments. This
impact extends beyond job creation to include
knowledge transfer and expertise that boost
national productivity – for example, through
collaboration between global data centre operators
and local staff, hands-on training, technology
sharing and partnerships with local educational
institutions, which together build local capabilities in
data centre management, network engineering,
facility maintenance, energy management and IT
infrastructure security.




Case study: Singapore’s data
centres create high-paying and
productive jobs
According to a 2023 study conducted by Access
Partnership, Singapore’s data centre sector has
already made substantial contribution to the
country’s economy and labour market.
The study found that the sector adds over SGD 2
billion annually to Singapore’s economy – nearly
half the size of the total retail sector and larger
than the entire hospitality sector. It also supports
up to 1.6 million jobs across the country,
including around 25,000 jobs linked to the
presence of physical data centres. Of these,
around 7,000 are employed within data centres
themselves, while a further 17,000 are supported
through the data centre supply chain.
These roles are both high-paying and high-
productivity, with wages 35% above the national
average and labour productivity 2.6 times higher.

7. 7

In addition, data centres enhance a country’s
attractiveness as a destination for foreign direct
investment, particularly in high-value manufacturing
and technology sectors. They catalyse investment in
industries such as server device manufacturing,
microchips, cooling systems, power supplies and
other hardware components. In Japan, for instance,
Hokkaido is drawing investments from chipmakers,
drawn in part by the region’s emerging data centre
ecosystem. These inflows not only diversify APAC’s
economies but also embed long-term capabilities in
innovation, R&D and high-value production, further
amplifying the strategic value of data centres in
driving sustained growth across the region.
What if?
Estimating the economic footprint
of Asia-Pacific’s data centres
A retrospective look at 2021 suggests data
centres may have contributed over USD 12
billion to regional GDP.
Drawing on Singapore’s estimated annual GDP
contribution of SGD 2 billion from 93 data centres
(1,000 MW capacity), we applied a simple scaling
approach based on aggregate data centre
capacity across Asia-Pacific in 2021 (7.9 GW).
While not a formal economic model, this resulted
in an indicative order-of-magnitude estimate of
over USD 12 billion in regional GDP contribution.
1

While data centre investments are already driving
job creation and economic impact across Asia-
Pacific, the full extent of their contribution to the
region remains under-explored. Regions such as
the United States and Europe offer a deeper body
of research quantifying the economic value of data
centres – including their impact on GDP and
employment.
These global benchmarks highlight the catalytic role
data centres play in enabling digital economies. As
the region’s digital transformation accelerates,
these examples demonstrate the scale of
opportunity APAC can achieve. With supportive
policies and investment, Asia-Pacific stands to
unlock significant untapped economic potential.

1
This speculative, narrative-led estimate is for illustrative purposes only. It assumes a linear relationship between capacity and GDP
contribution, without accounting for country-specific variations or advances in technology. The estimate also does not fully capture how
advancements in AI and data centre technology could amplify economic impact over time. With AI, cloud adoption and digitalisation rapidly
intensifying across Asia-Pacific, the sector’s current and future economic footprint is likely to be significantly larger.
The scale of opportunity:
Data centre growth in the US and
UK as a blueprint for APAC
As Asia-Pacific moves deeper into its digital
transformation journey, the experiences of other
regions offer a compelling preview of what is
possible. Data from the United States and United
Kingdom show how sustained investment can
turn data centres into powerful engines of
economic growth.
United States: A multi-billion-dollar growth
engine
• Between 2017 to 2023, the data centre sector
supported 2.9 to 4.7 million jobs annually.
Each direct job in the sector created more
than six additional jobs in the wider US
economy, with total job contributions growing
by 60% over the period.
• In that same period, the sector’s economic
footprint surged by 105% from USD 355
billion in 2017 (1.8% of GDP) to USD 727
billion in 2023 (2.6% of GDP). To put this into
context, this exceeded Singapore’s GDP in
2023, which stood at USD 501.4 billion.
• Meanwhile, the broader US economy grew by
just 41% in the same period, underscoring the
sector’s outsized contribution.
United Kingdom: Advanced market,
expanding impact
• The data centre sector currently contributes
£4.7 billion annually and directly supports
43,500 jobs in the UK economy.
• Projections suggest it could unlock an
additional £44 billion and create 40,200 new
jobs by 2035 – proof that even mature
markets have room to grow.
Away from headline GDP and job statistics, data
centres are also playing a quieter but equally
critical role – building workforce capabilities as
the basis for highly skilled and remunerated
work for communities across the region.

8. 8

Already, the industry is acting as a powerful catalyst
for workforce transformation. The construction,
operation and maintenance of data centres demand
a broad range of skill sets, creating job opportunities
across multiple professions – from engineering and
IT to facilities management and cybersecurity. As
demand for digital services continues to rise, data
centres are also opening up new avenues for skills
development, driving the need for a digitally capable
workforce and paving the way for high-value
employment and entrepreneurship.
In Singapore, for instance, Microsoft launched a
Datacenter Academy (DCA) to equip around 30
students with applied skills in infrastructure
management and mechanical services, as well as
emerging areas such as AI, data analytics, and
cybersecurity – helping to build a pipeline of talent
for the industry.
Across APAC, a growing number of public and
private academic institutions are introducing
specialised courses in data centre infrastructure
and digital technologies to develop local talent and
respond to the sector’s evolving needs. Examples
include University Malaysia Perlis, the University of
Malaya, University of South Australia and Singapore
Polytechnic.
Individual operators are also proactively driving
positive community impact by facilitating training
and digital technology programs in collaboration
with local universities and technical institutes across
India, Australia, Japan, Singapore, Malaysia and
beyond. Communities near data centres benefit
from these initiatives, leading to enhanced job
prospects and local workforce capabilities.

Workforce skilling initiatives and partnerships across APAC
• AirTrunk has partnered with the Tokyo Institute of Technology to establish the AirTrunk Scholarship,
supporting outstanding female students in STEM. In Australia, AirTrunk has also launched a 4-year
apprenticeship to nurture mechanical and electrical apprentices.
• Digital Realty opened its data centres to the public in Singapore, offering the local community a unique
opportunity to deepen their understanding of cutting-edge data centre operations. This initiative helped
raise awareness of the skills required in the sector and enhanced knowledge of state-of-the-art power
and cooling technologies.
• EdgeConneX has, since 2014, collaborated with Salute Mission Critical to equip and place veterans in
skilled and rewarding roles within data centres worldwide, including in Asia-Pacific.
• Equinix has partnered with the University of Technology Sydney in Australia through the Lucy Mentoring
Program, which connects cis- and transgender women studying engineering or technology with industry
professionals. In Singapore, Equinix has also collaborated with Half-the-Sky, a women-focused career
platform that supports professional development across APAC.
• Global Switch has launched an internship and study programme in Singapore benefitting students at the
Institute of Technical Education, offering valuable hands-on learning, mentorship and exposure to real-
world challenges in data centre operations.
• NTT Global Data Centers has established three full stack computing centres of excellence in
collaboration with R.M.K. Group of Engineering Colleges in Chennai, where students receive
comprehensive training in both digital and soft skills.
• Princeton Digital Group has worked with VJTI and IIT Bombay in India, as well as the University of
Technology Malaysia (UTM) and University of Malaya in Malaysia, on its Graduate Engineer Trainees
programme. It has also signed a Memorandum of Understanding with UTM and Universiti Teknologi
MARA under the Johor Public Universities Talent Partnership, reinforcing its commitment to nurturing
local talent and advancing workforce development in Johor.
• STACK Infrastructure has launched a NextGen mentorship programme in its Asia-Pacific operations,
aimed at nurturing emerging talent by focusing on developing leadership capabilities and supporting long-
term professional growth.

9. 9

• ST Telemedia Global Data Centres (STT GDC) has partnered with Don Bosco Tech Society (DB Tech)
and Nettur Technical Training Foundation (NTTF), two leading institutes in Bengaluru, to enhance the
employability of local youth in India through its ‘Infrastructure Management Services’ programme, helping
to build a robust pipeline of talent. In the Philippines, STT GDC has also teamed with EPI Group to equip
recent engineering graduates and early-career professionals with both hands-on training and an
internationally recognized credential – the Data Centre Foundation Certificate (DCFC). This two-phase
program combines training and career opportunities to address the increasing shortage of industry-
certified data centre professionals.
• Vantage Data Centers has collaborated with MPS, the Selangor State Development Office (ICU, JPM),
and the Sepang District Education Department (MOE) to launch the "Back To School 2025" program.
This initiative provided essential schoolbooks to underprivileged students across 12 primary and
secondary schools in the Sepang district, easing financial burdens on families preparing for the new
school year and ensuring these students have the resources to thrive.
Unlocking APAC’s digital and AI
potential
Beyond their contributions to jobs and workforce
development, data centres are critical enablers for
digital transformation that is driving economic
development across the region. They provide the
compute infrastructure necessary for businesses
and governments to innovate and develop digital
services, raising productivity and improving lives.
Measuring this impact is not always straightforward,
given that digital infrastructure is deeply intertwined
with all layers of the economy. As the Dutch Minister
of Economic Affairs has observed, governments
worldwide have nonetheless recognised the vital
importance of digital infrastructure to the broad
prosperity of their countries – including societal
benefits that are less easily expressed in monetary
terms, but are no less essential.
At the heart of the digital ecosystem, data
centres serve as the foundational infrastructure
that enables digital transactions for individuals,
businesses and governments alike. They facilitate
seamless internet access and power critical sectors
such as life sciences, medicine and banking. This
role is particularly crucial in APAC, where internet
connectivity has surged: mobile internet
subscribers have more than doubled in the past
decade to over 1.4 billion. Without data centres,
digital economies cannot function: businesses
would struggle to operate, consumers would lose
access to online markets, and many technological
advancements would remain out of reach.
Moreover, much like utility grids and
transportation networks powered the industrial
age, data centres are not only the foundation of
today’s digital economy – they are also the
launchpad for tomorrow’s AI-driven growth.

Data centres and our digital lives
For individuals
With over 1.4 billion mobile internet subscribers in APAC, data centres underpin the everyday digital activities
of individuals across the region – from financial transactions and communications to entertainment, travel and
shopping. For example, when a traveller books flights and accommodation online, the platforms and apps
used are powered by data centres. The same applies when they use GPS and navigation apps while travelling
– relying on the storage, processing and connectivity made possible by data centre infrastructure.
For businesses
Data centres are central to the digital transformation of businesses across the region. As Malaysia’s Ministry
of Investment, Trade and Industry has recognised, data centres enable companies to implement digital or
automation solutions that enhance operational efficiency, reduce costs and increase competitiveness.

10. 10

This impact extends to small and medium-sized enterprises (SMEs), which are increasingly relying on cloud-
based services powered by data centres to scale and innovate. For instance, TnG Digital Sdn Bhd, Malaysia’s
leading e-wallet provider, harnesses advanced cloud technologies to offer millions of users a secure, reliable,
and seamless mobile payment experience. In Indonesia, Lira Medika, a private hospital, developed a mobile
app that lets patients book appointments directly, increasing convenience particularly during peak demand –
thanks to the robust computing and storage capacity provided by data centres.
For governments
Data centres are also essential to the digitalisation of public services across APAC. Public sector organisations
have accelerated their transitions to cloud for scalability and cost-efficiency, enabling governments to deliver
citizen-centric services more effectively and at lower cost. Singapore, for instance, has achieved remarkable
digitalisation of its public services. Platforms like SingPass and LifeSG offer seamless access to a wide range
of government functions, and 99% of all citizen-government transactions can now be completed online –
demonstrating the foundational role of digital infrastructure.
Notably, several governments have already outlined specific national cloud adoption targets, including
Thailand’s Digital Economy and Society Ministry, which plans to enforce its ‘Cloud First’ policy via the
Government Data Centre and Cloud system in October 2025. In India, the National Informatics Centre has
established National Data Centres to provide cloud services to government ministries and agencies,
supporting the rollout of more efficient and responsive e-government services.

Data centres are transforming APAC’s digital
landscape by enhancing connectivity and internet
infrastructure, accelerating cloud adoption and
enabling countries to fully realise their AI potential.
Accenture estimates that generative AI alone could
contribute an additional USD 4.5 trillion in economic
value to APAC’s largest economies by 2038. But
realising this opportunity requires substantial
computing power to train machine learning models,
run complex data analyses and deliver real-time, AI-
powered services.
Without a resilient data centre ecosystem, the
development of a thriving AI economy would simply
be impossible. This point was recently underscored
by Indonesia’s former Minister of Communication,
Budi Arie Setiadi, who emphasised the critical role
of data centres in bolstering the country’s digital
transformation, highlighting that data centres have
evolved from being mere data storage to becoming
integral platforms for emerging technologies like AI
and cloud computing.

11. 11


Attracting clusters of hi-tech
innovation and investment
Data centres in APAC are increasingly acting as
magnets for hi-tech industries. A wide range of
technology-driven firms – from software developers
and cloud service providers to AI labs, fintech
innovators and e-commerce platforms – are drawn
to establish operations nearby to take advantage of
low-latency, high-speed digital infrastructure. These
dynamics fuel the formation of technology clusters
that accelerate innovation, attract skilled talent and
generate broader economic momentum.
This effect is already visible in markets across
APAC. In Melbourne, the rapid growth of data
centres is reshaping the city’s digital landscape –
creating new tech-oriented roles and drawing both
startups and global tech giants. Melbourne is
currently ranked by Savills Research as the best
tech city in Australia and the 14
th
best tech city in
the world. In Singapore, data centres have helped
anchor the country’s role as a regional hub,
supporting the presence of around 7,000
multinational companies. Of these, approximately
4,200 have established regional headquarters in
Singapore, many of which depend heavily on the
country’s advanced data centre infrastructure.

12. 12

Cities in Korea and Japan offer further compelling
examples. Inzai, once perceived as a “development
failure”, is now gaining global attention, due in part
to its success in attracting large commercial
facilities such as data centres (see case study
below). In Seoul’s Seongcho-gu district, authorities
are actively leveraging data centre infrastructure to
power future-focused development. As part of its
ambition to attract 1,000 startups to the ‘Yangjae AI
Future Convergence Innovation Special Zone,’ the
district plans to use the soon-to-be-completed
Gangnam Data Centre to attract AI startups –
positioning the area as a cutting-edge, future-
oriented city. These cases highlight how strategic
data centre development can shape a city’s
competitiveness – turning it into a magnet for high-
value tech investment and innovation.
Generating tax revenue and
supporting public services
Data centres generate sizeable tax revenues that
are used to fund the improvement and
modernisation of public services. High revenues
are generated from sales and property taxes on
land, buildings, and the numerous servers housed
within each facility. Due to the high unit cost of
servers, they constitute a substantial taxable asset.
Global precedent, including from the US (see case
study below), shows how a strategic and
competitive fiscal framework can spur private
investment while still delivering substantial public
revenue. While equipment depreciation could
theoretically reduce property tax revenue over time,
servers are typically upgraded every five years,
ensuring that – unless a data centre closes – these
tax revenues benefits remain semi-permanent.
Examples from APAC demonstrate the scale of
these fiscal contributions. For instance, the new data
centre park in Chennai’s Ambattur Industrial Estate
is expected to generate INR 200 crore (USD 23
million) in direct GST revenue and INR 3,000 crore
(USD 340 million) indirectly per year. Similarly, in
Korea’s Gangwon region, three private data centres
in Chuncheon city collectively contribute nearly
KRW 10 billion (USD 7.2 million) in tax revenue each
year, including KRW 8.6 billion (USD 6 million) from
Naver’s 40MW data centre, KRW 1 billion (USD 0.7
million) from Thezone Biz On Chuncheon D-Cloud
Centre, and KRW 200 million (USD 145,000) from
Samsung SDS Chuncheon ICT Finance Centre.


This boost in tax revenue delivers tangible
benefits to communities across APAC, funding
essential public services such as education,
infrastructure development, healthcare, capital
improvement projects, parks and recreational
facilities. In Japan, for example, the additional tax
contributions from data centres have played a key
role in strengthening public education, expanding
healthcare programmes and improving childcare
services, such as the ‘Child-rearing Generation
Comprehensive Support Centre’ (see case study
below).
Case study: Boosting local
revenues and services in Inzai
Inzai, a small municipality with a population of just
over 100,000, has seen remarkable fiscal
transformation over the past decade largely
attributed to its growing data centre presence. In
FY 2023, Inzai collected ¥16.2 billion (USD 110
million) in property tax revenue – more than
double what it collected ten years earlier.
This significant increase in revenue has enabled
the city to invest in vital community programs,
particularly those supporting families and
children. Notable initiatives funded by these
revenues include the ‘Child-rearing Generation
Comprehensive Support Centre’, where child-
rearing concierges are on hand to give advice.
Additionally, Inzai provides free school lunches to
students in public elementary and junior high
schools, underscoring the city’s commitment to
child welfare and education.

The scale of opportunity:
insights from the US
The fiscal contribution of the data centre sector in
the United States illustrates the scale of
opportunity available to economies in the Asia-
Pacific. With the right enabling policy
environment, data centres can serve not only as
engine-room of digital innovation and economic
growth, but also as significant and sustained
sources of public revenue that support wider
development goals.

13. 13

From 2017 to 2023, the sector’s contribution to
government revenues in the US more than
doubled – a 146% increase from USD 66.2 billion
to USD 162.7 billion. This level of revenue is
equivalent to fully funding the US Department of
Education’s FY2023 budget (USD 79.6 billion),
underscoring the scale of potential public benefit.
At the local level, Loudoun County in Virginia –
home to one of the world’s highest
concentrations of data centres – generated over
USD 600 million in tax revenue from the sector in
2022 alone. This has enabled investments in
education, infrastructure, and other public
services, without increasing the tax burden on
residents.
This growth has been supported by targeted and
well-structured tax incentives offered by many US
states to attract data centre investment. These
incentives – such as property tax abatements,
sales tax exemptions on equipment – have helped
position the US as a global data centre hub,
demonstrating that strategic fiscal measures can
spur private investment while still delivering
substantial public revenue.
Catalysing investment in energy
infrastructure and the transition
to renewables
As data centres expand to support the region’s
digital and AI transformation, their growing demand
for stable, high-quality power has presented a
powerful opportunity to accelerate investment in
energy infrastructure and unlock new growth in
Asia-Pacific’s green economy.
With long-term, predictable electricity needs, data
centres serve as anchor customers that improve the
bankability of large-scale renewable energy projects
– such as solar, wind, and hydropower – as well as
grid upgrades, battery storage and other supporting
infrastructure. This is particularly valuable in
emerging markets across APAC, where long-term
offtake commitments are key to attracting capital.
Across the region, operators are increasingly
partnering with utilities, independent power
producers, and governments to procure renewable
energy through mechanisms such as power
purchase agreements (PPAs). These agreements
are helping expand renewable energy deployment
and speed up the region’s transition to low-carbon
power. In 2022 alone, data centre operators –
including AWS, Microsoft, and others – accounted
for 45% of global PPAs, underscoring the sector’s
leadership in clean energy demand. By 2023,
Amazon already had announced 50 wind and solar
projects across India, making it the largest
corporate buyer of renewable energy in the country.
These mechanisms not only help decarbonise the
power supply for data centres themselves, but also
create broader market signals that stimulate
investment in the clean energy sector.
Operators are also contributing to green economy
growth by taking steps to improve the energy-
efficiency of their data centres. The deployment of
advanced cooling technologies and techniques and
energy efficient hardware drives the development of
an ecosystem of suppliers, specialising in innovative
forms of technology or equipment, generating high-
value jobs of the future. Microsoft, for example, has
partnered with Univers, a Singapore-based software
development firm, to explore energy optimisation
measures across its data centres.
In this way, data centres not only enable the growth
of APAC’s digital economy – they also play a
catalytic role in building its green economy. By
driving investment in clean energy and
infrastructure, the sector strengthens its long-term
economic contribution, creating new jobs,
infrastructure and industries across both the digital
and green economies.

14. 14

Country spotlights: the economic opportunity of
data centres
This section builds on the previous section by
focusing on the economic contribution of data
centres in select APAC markets.
Australia
The data centre opportunity in Australia
Australia has a unique opportunity to unlock the full
potential of its digital economy and realise its
ambition to become a world-leading digital economy
and society by 2030. Central to this vision is the
ability to meet and capture the rapidly growing
demand for data centre capacity.
Between 2024 and 2030, the number of internet-
connected devices in Australian households is
expected to double, alongside the rapid expansion
of new digital services – all reliant on strong and
scalable data centre infrastructure.
Expanding data centre capacity is critical not only to
supporting this surge in digital connectivity but also
to unlocking substantial economic value. According
to CSIRO, accelerated digital innovation could
contribute AUD 315 billion to Australia’s economy
by 2030, reinforcing the vital role data centres play
in shaping the nation’s future prosperity.
Driving job creation and economic opportunity
Data centres are already supporting a substantial
and growing workforce across Australia. According
to Mandala’s report, data centres currently support
9,600 full-time jobs nationwide. This workforce is
expected to nearly double, reaching 17,900 jobs by
2030, as Australia’s digital economy continues to
grow. This expansion will create close to 8,300 new
operational roles, spanning skilled trades such as
electricians and air conditioning technicians, as well
as engineers and ICT professionals – underscoring
the sector’s role in generating diverse, high-quality
employment opportunities.

Case study: AWS data centre
investment in Victoria fuels long-
term economic impact
An Economic Impact Study by AWS highlighted
the significant contribution of its Asia Pacific
(Melbourne) Region to Victoria’s economy. AWS’
data centre investment is projected to add AUD
15.9 billion to Australian GDP from 2022 to 2037.
It is also expected to support an annual average
of over 2,500 full-time equivalent jobs across the
data centre supply chain, including roles in
telecommunications, non-residential
construction, electricity generation, facilities
maintenance and data centre operations.
Unlocking Australia’s digital and AI potential
As Australia advances towards a more digital and
AI-driven economy, data centres will serve as the
foundation of this transformation. They are critical to
enabling Australia’s ambition to grow to 1.2 million
technology jobs by 2030, providing the advanced
computing power, secure data storage, and reliable
connectivity required to support a thriving digital
ecosystem.
Data centres’ large-scale processing and storage
capabilities are also essential to realising Australia’s
full AI and cloud potential. This includes unlocking
an estimated AUD 45–115 billion in economic value
from generative AI by 2030, and contributing to the
expected AUD 81 billion annual boost to GDP and
84,000 jobs supported by Australia’s cloud sector
by 2029.
Beyond these measurable contributions, the growth
of the sector is enhancing the country’s appeal as a
regional technology hub. Nowhere is this more
evident than in Melbourne, where strong digital
infrastructure is helping to attract startups, global
tech companies and top-tier talent. Melbourne now
ranks second in Asia-Pacific for new software
headquarters established over the past six years –
behind only Singapore and ahead of Hong Kong and
Sydney – and is recognised as the 14
th
best tech city
globally.

15. 15

As Professor Robin, Deputy Head of the School of
IT at Deakin University, observes, “the tech scene in
Melbourne is quite vibrant. There is a nice
combination of established players and global tech
giants as well as a startup scene that is gaining
momentum.” It underscores the pivotal role of digital
infrastructure – particularly data centres – in
enabling Australia to realise its full digital potential.
India
The data centre opportunity in India
India stands at an important juncture in its economic
and digital transformation. As the country transitions
from an emerging economy to a developed one,
data centres will be crucial for unlocking its digital
future – enabling more inclusive access to public
digital services and advancing financial and social
inclusion at scale.
Recognising this, the Ministry of Electronics and
Information Technology (MeitY) has rightly noted in
its Data Centre Policy 2020 that the scale of India’s
digital population and the rapid growth of its digital
economy require the robust expansion of data
centre infrastructure.
The opportunity is vast. India is projected to become
an economic superpower with an estimated GDP of
USD 26 trillion by 2047. Its digital ecosystem already
ranks among the world’s largest – with 1.64 billion
users seeking digital services, over one billion
mobile phones in use, and 700 million internet
connections. In 2022, India recorded the highest
level of mobile data consumption globally.
According to the State of India’s Digital Economy
Report 2024, India is now the third most digitalised
country in the world and ranks 12
th
among G20
nations in digitalisation at the individual user level.
Yet to fully realise this digital and economic
potential, significant infrastructure investment is still
needed. India is a global leader in data generation,
producing a fifth of the world’s data. Despite this,
India accounts for only 3% of global data centre
capacity – a striking mismatch given its scale and
digital activity. Bridging this gap will be key to
ensuring India’s digital ambitions are matched by
supporting infrastructure, and to positioning India as
a hub for data, innovation and economic growth.


Driving job creation and economic opportunity
Data centres are a growing catalyst of job creation
and economic growth in India. Ajay Kumar,
distinguished visiting professor at IIT Kanpur and
former Defence Secretary, estimates that the sector
could generate 1–2 million direct jobs nationwide.
Beyond these direct roles, the industry is expected
to create up to three times as many indirect jobs.
Crucially, the economic contribution of India’s data
centre industry is projected to exceed that of
manufacturing, underscoring its key role in driving
widespread employment and economic opportunity
across the country.
Case study: Microsoft data centre
regions driving substantial
economic growth in India
Microsoft’s data centre regions in India alone
contributed USD 9.5 billion in revenue to the
national economy from 2016 to 2020. During this
period, these data centres supported the creation
of around 1.5 million new jobs, including 169,000
skilled positions within the IT sector, highlighting
the significant role of data infrastructure in driving
employment and economic activity.
Unlocking India’s digital and AI potential
Data centres are central to unlocking India’s digital
potential. India’s digital economy is expected to
grow nearly twice as fast as its overall economy,
contributing close to a fifth of India’s national income
by 2030 – surpassing the share of agriculture or
manufacturing.
Data centres also underpin India’s fast-growing
cloud and AI markets, serving as the foundational
layer for successful AI development and initiatives
across the country. The cloud sector has potential
to contribute 8% of India’s GDP by 2026, boosting
GDP by USD 310–380 billion while producing 14
million employment. Additionally, India could unlock
USD 400 billion from generative AI by 2030, with
data centres serving as the critical infrastructure
powering the vast computational and storage
demands of next-generation AI technologies.
S Krishnan, MeitY Secretary, highlighted MeitY’s
efforts in “addressing critical infrastructure needs,
such as data centres and power requirements. India
currently has 1,000 MW of data centre capacity, but
this needs to grow substantially to meet the
demands of a rapidly digitising economy.”

16. 16

Malaysia
The data centre opportunity in Malaysia
As Malaysia aims to establish itself as a regional hub
for trade, finance and technology – a vision clearly
articulated by Prime Minister Anwar Ibrahim – data
centres are increasingly seen as central to enabling
that ambition. As Digital Minister Gobind Singh Deo
emphasised, “Malaysia’s digital economy is
expanding rapidly, and behind this transformation
lies a powerful, often unseen force: data centres and
cloud services.”
The data centre industry in Malaysia is experiencing
robust growth. Revenues are projected to reach RM
3.6 billion by 2025, up from RM 2.1 billion in 2022.
This momentum is supported by strong government
backing, with the Malaysian Investment
Development Authority (MIDA) approving 12 major
data centre projects totalling USD 20.9 billion.
Valued at USD 4.0 billion in 2024, the sector is
forecasted to surge to USD 13.6 billion by 2030,
growing at a strong annual rate of 22.4%. These
trends point to a sector with immense potential –
one that can deliver long-term economic dividends,
attract high-value investments and anchor
Malaysia’s position in the global digital economy.
Driving job creation and economic opportunity
Already, the sector is contributing meaningfully to
foreign direct investment (FDI) and employment.
Between January and mid-April 2025 alone, the
country recorded RM16.2 billion in total investments
from digital companies – expected to create 6,500
jobs over the next five years. Data centre and cloud
investments led the way, accounting for RM9.9
billion, or over 60% of the total. As Minister Gobind
noted, embracing data centre investments is not
only about enabling the digital economy – it is also
about creating a “buzz” that attracts global
investments.
These investments are delivering tangible economic
benefits on the ground, including high-skilled jobs
opportunities for the Bumiputera community.
According to the Ministry of Investment, Trade, and
Industry (MITI), data centre investments from 2021
to 2024 produced close to 3,70 specialised roles –
spanning data engineering and science, big data
analytics, cybersecurity and IT systems
engineering. These roles are deepening local
expertise, opening up high-value career pathways
for Malaysians and driving technology transfer
across sectors. MITI further estimates that recent
data centre investments will generate an additional
1,244 skilled job opportunities in the years ahead.
Case study: Google’s data centre
and cloud region investment in
Selangor
Google’s landmark investment in its first data
centre and cloud region in Selangor is a powerful
example of how digital infrastructure can
supercharge economic development. The project
is expected to support 26,500 indirect jobs and
contribute RM 15.04 billion (USD 3.5 billion) to
Malaysia’s economy. It underscores the
significant role that data centre investments play
in creating employment opportunities and driving
economic growth across the country.
Moreover, the sector is playing a pivotal role in
catalysing upskilling and workforce development
across Malaysia. These efforts directly support the
goals of the Malaysia Digital Economy Blueprint,
which aims to produce 30,000 data professionals
and 20,000 cybersecurity knowledge workers by
2025. For example, Google has trained more than
355,000 Malaysians, including students, educators,
developers and SME owners through programmes
such as Gemilang and Future Skills for All. Similarly,
Microsoft is training 200,000 local workers as part of
its investment in Malaysian data centres.
Additionally, the Johor Talent Development Council
recently launched its Data Centre Technician
Programme to further develop specialised skills in
the sector. These upskilling and workforce initiatives
not only strengthen Malaysia’s digital talent pipeline
but also boost Bumiputera employment in skilled
sectors, narrowing economic disparities between
Bumiputera and non-Bumiputera populations.
Unlocking Malaysia’s digital and AI potential
Malaysia aims to be an early mover in AI – a
mandate championed by Prime Minister Anwar. This
vision is already taking shape through strategic
initiatives such as the new National AI Office (NAIO)
under the Ministry of Digital. Data centres play a
crucial role in achieving this ambition, serving as the
core infrastructure needed to fully unlock Malaysia’s
AI potential, which is estimated to add USD 115
billion in productive capacity by 2030.

17. 17

Beyond AI, data centres underpin Malaysia’s
broader digital potential. As Professor Ong Kian
Ming observed, data centres generate significant
economic spillover effects as part of the wider digital
economy ecosystem. These include the creation of
high-value service jobs in the digital sector, and the
empowerment of large domestic corporations and
SMEs to thrive and innovate in the digital landscape.
Data centres are also strengthening Malaysia’s
global connections and enabling seamless cross-
border data flows, helping position the country as a
trusted regional digital hub. As Minister Zafrul noted,
developing data centres is like building a “highway”
that will serve as a link for other companies to set up
in Malaysia, and in so doing generating jobs and
economic opportunity for Malaysians.
Japan
The data centre opportunity in Japan
The expansion of Japan’s data centre sector will be
instrumental in realising the government’s vision to
be the world’s most AI-friendly country. This vision
aims to deliver tangible, near-term benefits for its
population, including leveraging AI to boost
economic efficiency and address pressing social
challenges such as caring for an ageing population.
The establishment of the AI Strategy Council –
chaired by the Prime Minister and comprising key
ministers – highlights the national priority placed on
advancing AI development.
Data centres play a vital enabling role in this
strategy, serving as the foundational infrastructure
necessary to support AI and broader digital
innovation. Japan’s data centre market is set for
significant growth, projected to nearly double from
¥2.74 trillion in 2023 to ¥5.08 trillion (USD 34.5
billion) by 2028. This growth is underpinned by a
rapidly expanding digital ecosystem, reflected in the
increase of 916,000 internet users in Japan between
January 2024 and January 2025 alone.
Driving job creation and economic opportunity
Japan’s growing data centre industry is fuelling new
jobs and economic momentum across the country.
Recognising its importance, the Cabinet Office has
identified data centres as a strategic sector in its
bold target to boost FDI to ¥100 trillion by 2030 –
highlighting the vital role this infrastructure plays in
Japan’s economic future.
This impact is reflected in several key investments.
AWS’s cloud infrastructure projects across Tokyo
and Osaka alone are projected to contribute ¥5.57
trillion to Japan’s GDP, while supporting over 30,500
jobs yearly. Meanwhile, Google’s first data centre in
Inzai is expected to deliver a significant economic
boost, contributing just over ¥40 trillion between
2022 and 2026 – further highlighting the significant
economic potential of data centre investments
across Japan.
These economic gains are not limited to jobs and
GDP impact alone. Data centre investments in
Japan are also delivering significant returns to
public finances, generating substantial tax revenues
that are reinvested into national and local
development priorities. In Inzai, for example,
property tax revenues reached ¥16.2 billion in FY
2023 – more than double the amount collected a
decade earlier. City officials attribute much of this
increase to the rapid growth of data centres. With
further expansions underway, Inzai expects an
additional ¥3 billion in revenue. Such figures are
extraordinary for a municipality with a population of
just 100,000 people. This has elevated Inzai’s fiscal
standing to rival that of much larger municipalities
like Narita and Urayasu. By FY 2030, property taxes
alone could account for nearly the entirety of Inzai’s
current total local tax revenue, underscoring the
outsized fiscal impact of data centre development.
Importantly, these gains translate into tangible
economic and social opportunities for people across
Japan. As former Member of the House of
Representatives Shin Miyakawa noted, “Attracting a
data centre will significantly increase tax revenue.
The substantial increase in tax revenue achieved
will be used for the future of our children. I think it is
important to invest in children who will carry the
future of Japan on their shoulders.”
Case study: How Inzai’s data
centre-driven tax revenues are
creating economic and social
opportunities
The city of Inzai provides a powerful example of
how increased tax revenues from data centre
investments can be channelled into meaningful
support for local communities. With a sharp rise
in property tax revenue – largely attributed to the
growth of data centres – Inzai has expanded a
range of social and administrative services that
directly benefit its residents.

18. 18

Some of this revenue has been allocated to
strengthening childcare and welfare support. This
includes services such as the “Child-rearing Help
Service”, which dispatches home helpers to
provide temporary housework and child-rearing
support; the "Child-rearing Generation
Comprehensive Support Centre," where child-
rearing concierges are on hand to give advice;
and "Komatsuna," where parents can consult on
pregnancy and child-rearing via LINE.
Inzai has also used this increased fiscal capacity
to ease the financial burden on families through
universal free school lunches in all public
elementary and junior high schools, and by
covering the full cost of medical visits for students
up to junior high. High school students,
meanwhile, pay a nominal fee of just ¥200 per
hospital visit or day of hospitalisation –
significantly lower than in neighbouring cities.
Unlocking Japan’s digital and AI potential
As Japan accelerates its AI ambitions – underscored
by the upcoming establishment of a national AI
Strategy Taskforce – the role of data centres is more
critical than ever. These facilities are foundational to
unlocking Japan’s full digital potential, which is
projected to generate up to ¥67.7 trillion (USD 459
billion) in annual economic value by 2030 –
equivalent to 13% of the country’s GDP in 2020.
Notably, 43% of this value is expected to be
captured by SMEs, underscoring the wide-reaching
benefits of a robust digital infrastructure.
As former Minister of Digital Affairs Takuya Hirai
righty noted: “The use of digital technology is the
source of competitiveness for each country. In order
to strengthen Japan's industrial competitiveness, it
is essential to develop and secure a digital industrial
base domestically. In particular, it is important to
advance the development of digital infrastructure
such as data centres domestically. This will promote
the domestic use of important technologies such as
AI and strengthen development capabilities.”
Inzai City exemplifies how data centre development
can unlock both national and local digital potential.
Once burdened by a reputation as a “development
failure”, Inzai has transformed into a thriving tech
hub – now known as the “Ginza of Data Centres”.
This transformation reflects the city’s success in
attracting global tech players such as Google, AWS,
NTT and NEC, bringing renewed vitality to the city
and positioning it as a key base for leading
companies.
Singapore
The data centre opportunity in Singapore
Singapore’s data centre sector holds great promise,
driven by the nation’s exceptionally high levels of
digital engagement. With an internet penetration
rate of 98%, smartphone penetration at 93%, and an
online purchase rate of 58%, demand for digital
services continues to rise, necessitating greater
server capacity and infrastructure expansion.
This momentum aligns closely with Singapore’s
digital ambitions, especially following the launch of
the Smart Nation 2.0 strategy in 2024. Data centres
play a critical role in realising this vision by
supporting a connected, innovative and resilient
digital economy. As Minister of Digital Development
and Information Josephine Teo highlighted, “Many
digital infrastructure components work seamlessly
behind the scenes to power our digital economy and
society; yet few of our digital ambitions can be
realised without adequate infrastructure.” In this
context, data centres stand as foundational pillars
central to Singapore’s future digital landscape.
Driving job creation and economic opportunity
Singapore’s data centre sector is already making an
outsized contribution to the country’s economy and
labour market. A 2023 study found that the sector
adds over SGD 2 billion annually to Singapore’s
economy – nearly half the size of the total retail
sector and larger than the entire hospitality sector.
The study also estimated that data centres enable
up to 1.6 million jobs across the country,
representing approximately 70% of the resident
labour force. Of these, around 7,000 are direct data
centre jobs, which are notably high-paying and
productive, with wages 35% above the national
average and labour productivity 2.6 times higher.
Given Singapore’s land constraints, data centres
demonstrate remarkable efficiency, generating 85%
higher land productivity than the average land use
in the country. On a per hectare basis, data centres
deliver SGD 59.9 million in economic value – almost
double the national average.
Looking ahead, data centres in Singapore are
projected to drive 2.8 times increase in jobs and 8.9
times growth in economic contribution by 2030
compared to 2022 levels. This trajectory highlights
the sector’s critical role as a powerful engine for
sustainable economic growth and the creation of
high-quality jobs in Singapore.

19. 19

Unlocking Singapore’s digital and AI potential
Singapore aims to use AI to “uplift the country’s
economic and social potential,” as outlined in the
National AI Strategy 2.0. Data centres are critical to
this vision, providing the essential foundation for
Singapore’s AI ambitions and supporting its
continued economic competitiveness and status as
a global business hub. Singapore has already
achieved notable success in innovation and AI; for
example, it is ranked third globally in AI investment,
innovation, and implementation according to the
Global AI Index by Tortoise Media, and fifth in the
2024 Global Innovation Index.
Data centres have also played a key role in helping
Singapore secure and maintain its position as a
regional digital hub. By enabling the low latency
required for data-driven services, data centres have
helped reduce business costs, attracting around
7,000 multinational firms to establish a presence in
Singapore – 4,200 of which serve as regional
headquarters largely dependent on local data
centres. A healthy data centre sector provides the
essential foundation for Singapore’s status as a
digital hub.

20. 20

Capturing the opportunity: a strategic policy
roadmap to unlock APAC’s data centre potential
To fully realise the region’s economic and digital
potential, governments across APAC must develop
practical solutions to ensure that data centres can
support their broader goals for economic growth
and digital transformation. These strategies should
prioritise decisive, coordinated action and speed –
delivering clarity, coordination and confidence to
investors, operators and other key stakeholders.
Data centre investment decisions are increasingly
taken at a global or regional level, where sovereign
wealth funds, private equity firms and institutional
investors carefully assess individual countries’
competitiveness. Key considerations include speed
to build, regulatory stability, energy availability and
cost, access to skilled talent, robust connectivity
infrastructure and political stability. Countries that
take a coordinated and practical approach to these
areas – by offering clear and consistent policies,
streamlined approval processes and investing in
foundational infrastructure – are better positioned to
attract capital. In contrast, fragmented or
unpredictable policy environments risk losing out to
more investment-ready markets. As the World
Economic Forum has written, “around the world…
governments are positioning themselves as prime
destinations for data centre foreign direct
investment (FDI), offering tax incentives, fast-track
permitting and dedicated infrastructure zones”.
From the perspective of data centre operator,
investment strategies begin with a thorough
evaluation of market opportunity – both in terms of
size and growth of demand for digital services. Once
a market is deemed viable, the selection of specific
sites depends on multiple factors – such as the
reliability and cost of power supply, land availability,
proximity to fibre networks and subsea cables, and
access to skilled labour and supporting services.
Operators aim to minimise long-term risks and
ensure operational resilience, so they prioritise
locations that offer optimal conditions across power
infrastructure, connectivity, regulatory environment
and workforce availability.
By understanding these investment dynamics,
governments can design targeted policies that
unlock data centre growth while advancing their
national digital agenda. The recommendations in
this section reflect these realities and offers a
roadmap around four core pillars: Enable,
Compete, Uplift and Anticipate. Together, these
pillars provide a strategic foundation for maximising
the economic potential and impact of data centres
as essential infrastructure powering APAC’s digital
economies.

21. 21

Pillar 1: Enable
Laying the groundwork for data
centre growth
Unlocking the benefits of data centres begins with
laying their foundations for growth. Governments
should prioritise improving access to long-haul fibre
and international connectivity, while streamlining
permitting and zoning processes. These actions are
crucial to lowering barriers, catalysing infrastructure
development and boosting investor confidence.
Improve access to long-haul fibre routes and
connectivity
Data centre operators typically prioritise locations
with high availability of fibre, cable and
telecommunications networks – especially those
with capacity for further expansion. Long-haul fibre
is usually delivered via rail corridors or near
undersea cable landings. Areas where these routes
intersect provide the network density critical to
attracting data centre development.
Inzai City in Japan illustrates this well: its proximity
to a major undersea cable landing station has
helped establish it as a thriving data centre hub.
APAC governments can unlock similar opportunities
by identifying high-connectivity zones and
supporting them through targeted infrastructure
investment and integrated planning.
Streamline permitting and zoning processes to
reduce development bottlenecks
Lengthy and complex permitting and zoning
processes, along with limited access to suitable
land, remain major barriers to timely data centre
development across many APAC markets.
Streamlining these processes and proactively
addressing land constraints are essential to
attracting investment and meeting the region’s
growing demand for digital infrastructure.
A good example is the recent proposal by the New
South Wales Minns Government to establish a NSW
Investment Delivery Authority. The Authority aims to
accelerate planning approvals for major projects,
including data centres, by cutting red tape,
coordinating across government and identifying
projects suitable for fast-track assessment.
International examples also offer useful models.
Belgium has linked streamlining permitting to
sustainability, offering accelerated approval
processes for facilities that meet specific energy
efficiency standards. More broadly, the Nordics
have positioned themselves as prime destinations
for AI-driven data centres, supported by deliberately
simplified permitting frameworks and broader
investment-friendly policies.
APAC governments can adopt similar strategies to
reduce regulatory friction and send a strong signal
to investors. Centralised, transparent, and time-
bound permitting processes – coupled with clear
land-use policies – can help unlock high-quality data
centre development that keeps pace with
governments’ digital ambitions.
Pillar 2: Compete
Creating an attractive and
competitive environment
As global competition for data centre investment
intensifies, Asia-Pacific governments must take
proactive steps to capture their full economic
potential and to ensure the region becomes a model
of digital and AI innovation. Important determinants
of competitiveness include reliable, affordable, and
sustainable energy access, as well as supportive
policies such as targeted tax incentives.
Create an enabling policy environment to
support expanded access to reliable, clean, and
affordable energy
Clean energy sources are a critical enabler of data
centre growth and essential for capturing the full
economic potential of this rapidly expanding sector.
However, as highlighted in the Cushman &
Wakefield 2025 Global Data Centre Market
Comparison, most APAC countries lag behind
global peers in renewable energy availability.
Auckland is the only APAC market to rank among
the global top ten, while most others fall significantly
behind counterparts in EMEA and the Americas.
APAC governments play a crucial role in
accelerating grid upgrades and expanding access
to renewable energy across the region, with
initiatives like Power Purchase Agreements (PPAs)
proving vital in strengthening data centre
ecosystems. Additionally, government support for
the development of on-site renewable energy
sources can significantly enhance the long-term
sustainability and competitiveness of data centres,
thereby maximising their economic contribution.

22. 22

Malaysia provides a strong example of proactive
government support via its Green Lane Pathway,
which fast-tracks electricity supply for projects, and
the Corporate Renewable Energy Supply Scheme,
enabling large companies to purchase renewable
energy directly from independent power producers.
Similarly, Germany is exploring innovative energy
models through public-private partnerships. For
example, T-Systems and the Fraunhofer Institute
are collaborating to investigate how renewables,
energy storage and flexible consumption patterns
can be integrated into sustainable data centre
design. By fostering an enabling policy environment
focused on energy reliability and affordability,
governments can unlock significant economic value
from data centre development and position their
markets for long-term success.
Provide targeted incentives to help drive data
centre growth and investment
While data centres already make meaningful
contributions to public finances through various
forms of taxation, there may be a case for strategic,
time-bound incentives to attract high-value
investments – particularly in competitive regional
contexts where neighbouring markets offer
generous packages. A robust package of targeted
tax incentives demonstrates government
commitment to the data centre industry and
facilitates large-scale development. Such incentives
typically include relief on property taxes, sales or
value-added taxes, and other financial benefits.
Given the high capital costs of data centres – where
the largest campuses can reach nine- or even ten-
figure costs – such incentives often play a crucial
role in operators’ site selection decisions. At the
same time, governments should avoid introducing
additional tariffs or taxes on data centres, as these
can significantly increase operational costs, deter
investment, and reduce market competitiveness.
For example, Virginia offered over USD 750 million
in tax subsidy for data centres in 2023, contributing
to its status as a leading hub for data centre
development. Nearly every market in the Americas
also provide some form of incentive to attract data
centre development, most commonly through sales
and tax abatements. Similarly, Japan launched a
SGD 9.8 billion initiative in 2020 to promote green
innovations and reduce the sector’s environmental
impact, including 50% subsidies on building costs
for zero carbon emissions data centres. These
examples highlight how targeted tax incentives can
be a powerful tool to attract investment, support
sustainable growth and enhance the
competitiveness of data centre markets globally.
Pillar 3: Uplift
Leveraging the sector to create
opportunity for individuals,
communities and businesses
To truly maximise the economic potential of data
centres, governments must ensure that sector
growth uplifts individuals, communities, and
businesses by translating benefits into meaningful,
on-the-ground opportunities. This includes investing
in workforce development to ensure that local
workers fully benefit from employment
opportunities. It also involves facilitating access to
compute capacity for SMEs and academic
institutions so they can harness data centres to
innovate, develop new digital products and services,
and deliver broader community benefits.
Invest in workforce development to ensure data
centre benefits remain in-country
One of the most significant – and often overlooked
– challenges facing the data centre industry is the
growing talent gap, particularly in APAC. According
to the Uptime Institute, global demand for data
centre workers is expected to reach 2.3 million by
2025, with much of the shortfall concentrated in
APAC. Without sufficient local talent, countries risk
losing out on the long-term economic benefits of
data centre investment.
APAC governments must therefore prioritise
workforce development strategies that build a
pipeline of high-skilled local talent, particularly in
advanced engineering, cloud computing and data
centre operations. This will help build a workforce
capable of supporting sustained sector growth.
Singapore’s emergence as a regional data centre
hub is partly due to its investment in a high-skilled
workforce and its strong focus on industry-relevant
education. Similarly, Korea illustrates how
government agencies can collaborate with the
private sector to attract and grow talent through
impactful and innovative upskilling and reskilling
programmes. The K-Digital Platform (KDP)
assembles a coalition of employers and universities
to deliver digital vocational training such as an Intel-
certified semiconductor design course. Similar
public-private partnerships have been formalised
through the Digital Talent Alliance to fulfil Korea’s
ambition of nurturing a million digital talents by
2026, particularly in AI, cloud and semiconductors.
These efforts to cultivate a deep and future-ready
talent pool reinforce Korea’s competitiveness as a
powerhouse for data centre investment.

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In practice, public-private partnerships can also be
an effective way to deliver targeted training that
align with the specific skills needed for data centre
construction and operations. These can include
courses on data centre development, facilities
management, cybersecurity, network administration
and AI. To further enhance workforce readiness,
governments may also encourage apprenticeships
and on-the-job training within the sector by offering
incentives – such as tax credits or low-interest loans
– to companies actively engaged in workforce
development initiatives.
Facilitate SMEs and academic institutions’
access to compute capacity
A key part of translating the benefits of data centres
into meaningful, on-the-ground opportunities is
ensuring that less well-resourced institutions and
smaller businesses can access compute capacity.
This access enables them to benefit from data
centres to develop innovative new digital products
and services that benefit communities.
The IndiaAI Mission offers a positive example, with
a dedicated pillar focused on expanding compute
access for its startup and research community. It is
supporting over 25 deep tech startups, industry-led
projects, and 80 IndiaAI labs nationwide. Similarly,
Australia’s AI Sprint provides entrepreneurs and
startups critical resources and tools to rapidly
prototype and refine AI-driven solutions into
demonstration-ready prototypes. One such
outcome is Kindship, an AI Sprint winner in 2024 –
an AI-powered system to help people navigate the
National Disability Insurance Scheme. Ensuring
broad access to compute capacity not only fosters
innovation but also builds a more inclusive digital
economy where the economic and social benefits of
data centre growth are widely shared.
Pillar 4: Anticipate
Future-proofing policy to
capture the next wave of digital
infrastructure growth
To fulfil the long-term economic potential of data
centres, governments must not only address
present-day enablers but also anticipate how
technology is evolving. AI-native infrastructure,
edge computing and quantum technologies are
reshaping how compute power is desig ned,
delivered and consumed. Governments that
anticipate these shifts will be better positioned to
attract next-generation data centre investment,
support innovation across industries and build
future-proof infrastructure strategies.
Embed horizon-scanning and technology
foresight into infrastructure and policy planning
Emerging technologies will markedly reshape data
centre needs. AI-native workloads need specialised,
high-density facilities with advanced hardware,
improved energy efficiency and innovative cooling
solutions. Edge computing shifts infrastructure
toward smaller, distributed sites closer to users,
calling for adaptive zoning, connectivity and
spectrum management approaches. While quantum
computing remains nascent, it is expected to
introduce distinct infrastructure requirements, such
as highly controlled environments, energy-intensive
cooling, and enhanced physical and cybersecurity
measures.
To prepare for these shifts, governments must
embed structured horizon-scanning and technology
foresight into their infrastructure and policy
planning. This means not only monitoring
technological trends but translating those insights
into practical, forward-looking policy and investment
decisions. Singapore’s government, for example,
has established the Centre for Strategic Futures to
anticipate long-term trends and build strategically
agile policies across the whole-of-government. This
forward-looking approach has helped guide early
investments in critical technologies, such as an SGD
700 million investment in quantum research.
Other governments across Asia Pacific can adopt
similar approaches by establishing dedicated
foresight units or expert advisory groups within
relevant ministries. These bodies should be tasked
with tracking emerging developments in AI, edge,
and quantum technologies and advising on how
infrastructure, zoning, and investment policies must
evolve to stay ahead of industry needs. Integrating
these insights into medium- and long-term digital
economy strategies will help countries position
themselves to attract next-generation data centre
investments, support innovation across sectors, and
build infrastructure ecosystems that are resilient,
adaptive, and future-ready.

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Conclusion
Asia-Pacific stands at a pivotal moment in its journey
to unlock the full potential of data centres as drivers
of digital transformation and economic growth. With
the right enabling conditions in place, APAC will
leverage data centres as powerful engines of
sustainable and inclusive growth for years to come.
This report outlines the economic contribution data
centres already provide across the region and offers
a strategic roadmap built around four key pillars to
further maximise their impact. APDCA and its
members remain committed to partnering closely
with governments to realise this vision – fostering
sustainable, inclusive growth that benefits
businesses, communities and economies
throughout the region.

25. [email protected]
www.APDCA.org