The digital transformation in Asia is happening very rapidly. The development of digital technology has brought new challenges to data centers, not only in the form of rising energy consumption but also in the complexity of operation and management.

The Rise of Digital Transformation in Asia

In the past decade, Asia has experienced a massive transformation in every aspect of its society. The rapid digitization of the economy has touched on many facets of life, from work to entertainment. In tandem with this digital revolution, the region is experiencing unprecedented data traffic growth, further accelerating the trend.

To take advantage of the new opportunities offered by Asia’s digital transformation, companies should consider how to position themselves in this new market and leverage data-driven strategies to stay competitive.

However, the current infrastructure can no longer keep up with the exponential data traffic growth or provide the necessary bandwidth for its applications. This gap between demand and supply is a key factor inhibiting the innovation and development of emerging technologies such as artificial intelligence (AI), cloud computing, and big data analytics (BDA).

Asia-Pacific will have 1,200 new data center locations with a total power capacity of 18 million kW. However, the region’s data center industry still needs to catch up in terms of energy efficiency due to limited awareness of the environmental impact and lack of green data center technology adoption.

Asia-Pacific justifies the application of Green Data Center technology and practices because the region has a great potential to utilize Green DCs to reduce their carbon footprint and ensure sustainable development.

Digital Transformation and Its Environmental Impact

As the world becomes increasingly connected, and the need for data centers to support our increasingly digital lifestyles grows, we can expect the environmental impact of data centers to rise. According to recent studies, the carbon emissions from data centers amount to a whopping 2% of global greenhouse gas emissions and are growing at 6-10% annually.

In the US, green data center practices have contributed significantly to their low carbon footprint. However, in Asia, there is more emphasis on building a facility with a smaller carbon footprint rather than implementing green practices during operations. This lack of long-term focus on sustainable practices has resulted in an enormous energy footprint in Asia’s data center industry that is expected to increase significantly.

Green Data Center technology is widely adopted to reduce energy consumption while reducing costs and improving performance. That’s why companies such as Google, Apple, and Facebook lead the charge in developing green data centers.

These companies are implementing innovative technologies, such as high-efficiency cooling systems, that help save electricity by optimizing their facilities’ temperature and humidity levels. They’re also using cutting-edge power conversion equipment and advanced cooling technologies to improve efficiency, reduce energy consumption and decrease overall cost.

Greening the Data Center

Today, the digital economy is booming in Asia. The technology adoption rate is the fastest in emerging markets such as India and Indonesia. The rapid transition to cloud-based computing, artificial intelligence, and mobile technologies has put incredible pressure on existing IT infrastructures. Given this situation, a more energy-efficient and sustainable IT infrastructure is more critical than ever.

Asia must transition from traditional data centers to high-efficiency green data centers ASAP to maintain economic growth. Moving from a legacy to a green data center will help Asia save 62% in operational costs, 45% in maintenance and 40% in capital expense costs over ten years.

Moving our data centers to a green energy model is one of the most important steps to ensure that our information economy continues to function smoothly. Traditional power generation methods are being replaced by renewable energy sources, allowing us to take a big step toward making our digital lives sustainable.

When companies build a new facility, they should choose an efficient design that will reduce their carbon footprint and increase their competitiveness in the marketplace. One way to do this is by investing in a water-cooled data center design. Water-cooled data centers can be up to 93% more efficient than traditional air-cooled designs.

With almost no heat generated by servers, they also require fewer expensive cooling systems which use large amounts of electricity. As a result, organizations have more control over their energy budget while reducing their carbon footprint at the same time.

These environmentally friendly designs are also beneficial from a business perspective since they significantly improve the efficiency of operations and can lead to cost savings that offset any capital investment required for implementation.

Read also: Internet Users in Indonesia Hit 220 Million Users in 2023

Lack of Green Data Center Investment

The lack of green data center investments is troubling because these facilities use up to three times less energy (and water) than traditional data centers built in Asia over the last decade. Businesses that rely on IT should be aware that this outdated infrastructure prevents them from realizing the full potential of their digital investments.

They should also recognize that expanding their IT infrastructure with green data centers can provide various benefits—including reduced costs, improved service quality, greater flexibility and agility, and better security. The sooner companies embrace green data center technology, the sooner they can reap these benefits.

It means that there is significant room for improvement in our industry, while it also means that there are many opportunities for businesses looking to grow in this sector. Very few companies have demonstrated best practices and built a thriving environmentally friendly data center, so investors will benefit by investing in those who can do it well.

Many companies in Indonesia have responded quickly to this need for green data centers. These data centers use renewable energy sources and other more environmentally-friendly power generation methods. This is important for several reasons.

  • First, going green is simply good for the environment. It helps create a more pleasant working environment for all company employees who know they are doing their part to help keep the planet safe for future generations by using renewable energy sources.
  • Second, going green makes good business sense for companies that operate out of Indonesia since it reduces operating costs by lowering electricity bills and helps cultivate a good reputation among consumers.


Smart cities and digital transformation are no longer the stuff of futurist fantasies: they’re happening right now across Asia. Our growing reliance on innovative technologies means we are generating more data, which relies on a robust and sustainable infrastructure.

The digital revolution is an unprecedented opportunity for creative destruction, and it is the only way for the Asian economy to keep up with the rest of the world. But to achieve its full potential, digital transformation needs green data centers.

If you are looking to establish operations in Indonesia or elsewhere in Asia, feel free to contact us.

Read also: Eco-Friendly Data Center is Impossible to Build in Singapore?

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