A new report from global real estate consultant JLL reveals that 85% of data center managers in Asia-Pacific believe sustainability will have a significant impact on their operations and decision-making, confirming that industry growth will continue to grow. influenced by environmental, social and governance factors (ESG considerations).

Demand for data centers – the buildings that house computer systems and servers that store and process global data – has exploded due to the widespread adoption of digital communication tools and e-commerce. To fuel this growth, the amount of energy used by data centers doubles every four years and the sector now accounts for up to 4% of global greenhouse gas emissions.

However, only 28% of operators surveyed have visibility into their energy consumption data, which would enable them to add transformational business value, maximize efficiency and reduce waste.

“Asia-Pacific is arguably the most dynamic data center market in the world and strategies will need to adapt to respond to the changing operating environment and heightened ESG expectations. cope with its growing contribution to global emissions, so operators need guidance throughout the real estate life cycle – from site selection to investment and facility management – in order to solve the massive sustainability challenges they face,” said Chris Street, Data Center Manager, Asia Pacific, JLL.

According to JLL’s analysis, becoming more sustainable and socially responsible is the top strategic priority for data centers over the next two years, ahead of traditional measures of productivity and efficiency. Driven by net-zero carbon ambitions, owners and operators will focus on technologies that reduce energy consumption, minimize waste and rely more on renewable energy sources to power this asset class. About 50% point out that they will implement artificial intelligence (AI) powered cooling technology in their data center by 2023.

Respondents also identified reassessing aspects of data center construction as key to achieving climate neutrality in the future, particularly by minimizing carbon-intensive materials such as steel and concrete,

Investor Interest in Data Centers

Driven by the shift to cloud-based internet services and online retail, competition for assets has intensified, so data center real estate is attracting more interest from trusts real estate investment trusts (REITs), private equity groups and sovereign wealth funds. As a result, institutional investors will not only seek a stable stream of income, but will increasingly position ESG as a major consideration for any investment decision.

However, according to JLL’s analysis, the lack of global standards for data centers makes it difficult to report in-depth ESG metrics. The same respondents believe it is incumbent on operators to develop their own clear and well-defined Key Performance Indicators (KPIs) to gain the trust of investors, which is essential for creating shareholder value and maximizing returns.

“The growth of data centers in Asia-Pacific comes at a growing environmental cost, but provides the necessary impetus for investors and operators to adopt more sustainable operational and development practices. As more data centers are needed regionally, the conversation will inevitably shift towards greening real estate supporting this sector and aligning with more aggressive ESG strategies,” says Kamya Miglani, Head of ESG Research , Asia-Pacific, JLL.

The report was compiled from a survey of 505 data center managers, 70% enterprise-run, 30% service-provider-run, and spanning 13 Asia-Pacific countries.

Learn more here.