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Solving the energy crisis in data centers in APAC: Sustainability a foremost concern

By Paul Lee, Director, Strategic Segments (APAC), CHINT Global | Friday, April 11, 2025, 3:25 PM Asia/Singapore

Solving the energy crisis in data centers in APAC: Sustainability a foremost concern

With APAC accounting for a significant share of global electricity consumption, localized strategies are essential to address the region’s energy crisis

The rapid expansion of data centers (DCs) and the surge in renewable energy projects are placing unprecedented demands on utility infrastructures. Both sectors are competing for the same electrical equipment — particularly transformers, switchgear, and circuit breakers — leading to intensified competition for resources and market-wide supply shortages.

In the Asia-Pacific region (APAC), the green data center market is expected to grow from US$9.68bn in 2023 to US$22.91bn by 2029 (CAGR: 15.43%). India alone added nearly 28 gigawatts (GW) of solar and wind capacity in 2024. Vietnam has revised its energy strategy, now aiming for 16% solar energy by 2030, a substantial increase from the previous 5% target. Meanwhile, Malaysia’s soaring DC demand has led the government to impose premiums on energy and water usage for tech firms.

As energy needs escalate across sectors, efficient power solutions are critical to support sustainable digital growth. Additionally, supply chain disruptions and raw material shortages are exacerbating long lead times for critical components. The need for high-quality, fast-deploy transformers, power distribution units, and energy management solutions such as prefabricated containerized power train unit, smart grid technologies, and energy storage systems (ESS) has never been greater.

Ensuring an uninterrupted supply of these essential components is key to enabling data centers and renewable energy facilities to meet their ambitious growth targets.

Repurposing commercial buildings

With prime land for new developments becoming scarce, many DC operators are turning to repurposing existing buildings such as commercial spaces, warehouses, and even industrial sites, although that brings about major challenges of their own.

Ensuring that these adapted locations can support the substantial power requirements of modern data centers is a critical consideration in project development. Many lack the high-voltage switchgear, protection relays, and grid interconnection capabilities required to support these operations.

A compact skid power train unit, which integrates modular power distribution units (PDUs), intelligent switchgear, and transformers, offers a scalable solution for these retrofits, enabling seamless adaptation without major overhaul to the entire power system.

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