As growing demand for artificial intelligence (AI) clashes with physical constraints, the Asia Pacific Data Centre Association (APDCA), a network of leading commercial data centre operators, has launched a new regional framework aimed at aligning the fast-growing sector with common sustainability goals.
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The Sustainable Digital Infrastructure Accord (SDIA) is the first APAC-wide, industry-led baseline of sustainability commitments for the data centre sector across four key areas: energy efficiency, clean energy use, water use, and circular economy.
Progress in these areas will be measured against recognised international standards and established industry methodologies, without duplicating existing audit and certification processes such as ISO frameworks.
The founding signatories to the SDIA include major global and regional operators such as AirTrunk, Digital Realty, Equinix, Microsoft, NTT Data and ST Telemedia Global Data Centres, among others.
Participation in the SDIA also extends beyond APDCA’s membership and is open to data centre operators, hyperscalers and relevant industry associations across the region.
APDCA says it is “designed as a living framework” that will evolve over time. The association’s chair, Jeremy Deutsch, said the initiative reflects growing recognition within the sector that digital expansion must be matched by environmental responsibility.
“The SDIA demonstrates how the industry is ready to work together to ensure that digital transformation and sustainability go hand-in-hand in Asia Pacific. It provides a structured platform for government-industry dialogue on how to drive further progress,” he said.
Deutsch added that the industry is keen to work with policymakers and stakeholders to support a sustainable digital and AI transformation in the region. The framework is voluntary and non-binding in nature, intended to complement national and regional regulations and serves as a forum for ongoing collaboration and dialogue between industry and governments.
The launch comes as Asia Pacific markets continue to compete for data centre investments driven by cloud computing, AI workloads and digital services. However, the rapid expansion of facilities has also drawn scrutiny over electricity demand, water consumption and carbon emissions.
Thailand, for instance, is experiencing a rapid data centre boom, with the Board of Investment approving 36 projects worth about US$23 billion in 2025 alone, followed by at least seven more facilities valued at US$3.1 billion in January this year.
However, the expansion concentrated in the Eastern Economic Corridor spanning Chonburi, Rayong and Chachoengsao, is raising alarm among local communities over rising water demand, electricity use and emissions, Mongabay reported. The facilities consume millions of cubic metres of water annually for cooling in already water-stressed industrial zones.
Residents and environmental groups have said that the rapid influx of projects, backed by global tech giants and incentives, has outpaced transparency and strategic environmental planning, with concerns over wastewater discharge, competition with agriculture and fisheries, and heavier reliance on fossil fuels to meet surging power demand.
Similar tensions are emerging elsewhere in Southeast Asia. In the Philippines, high electricity tariffs and grid constraints has prompted conglomerate SM Investments Corporation to exit the data centre business due to soaring electricity prices and climate-related risks.
While demand for cloud and AI infrastructure is growing, analysts say the country’s continued reliance on coal and gas, coupled with slow renewable energy deployment, is a growing concern. Surging data centre loads could strain power systems, raise operating costs and complicate national decarbonisation goals if infrastructure upgrades do not keep pace.
Anuar Fariz Fadzil, chief executive of the Malaysia Digital Economy Corporation (MDEC), the government agency tasked with driving Malaysia’s digital economy and attracting technology investments, said the accord is timely as countries in the region scale up digital and AI growth.
“As the demand for digital infrastructure continues to grow in tandem with the expansion of cloud and AI technologies, such collaborative efforts will be key to shaping sustainable, climate-resilient digital ecosystems,” he said, adding that MDEC remains committed to supporting this transition.
Meanwhile in Singapore, where data centres underpin the city-state’s digital economy but face land and energy constraints, regulators also welcomed the initiative.
Aileen Chia, deputy chief executive of the Infocomm Media Development Authority (IMDA), said the accord could help guide more sustainable development across the sector.
“Data centres are a critical foundation to Singapore’s digital economy but are resource intensive. This is not a new challenge, nor is it unique to Singapore. But it presents an opportunity for us to develop innovative solutions,” she said.
She noted that data centres in Singapore are already adopting measures such as the Tropical Data Centre and IT Energy Efficiency standards and said the government would continue working with industry to promote sustainable and energy efficient technologies and improve performance over the long term.
