Data centres in Asia Pacific focus on aligning with ESG strategies

The demand for data centres has soared due to the widespread adoption of e-commerce and digital communication tools

Asian businesses that have benefitted the most from an ESG perspective saw the strongest returns for investors. creekmyst/Shutterstock

DataCenter News reported that in the Asia Pacific region, 85 percent of data centre managers think that sustainability will have a great impact on how they operate and make decisions, demonstrating that environmental, social, and governance (ESG) factors will have an influence on the sector’s growth.

Data centre owners and operators will concentrate on systems that lower power usage, minimise waste, and depend more on renewable energy sources.

“Asia Pacific is arguably the most dynamic data centre market globally and strategies will need to adjust to meet the changing operating environment and increased ESG expectations,” said Chris Street, head of data centres, Asia Pacific, JLL.

More: Asia Pacific region’s data centre market surpasses EMEA, survey says

Moreover, Kamya Miglani, head of ESG research, Asia Pacific, JLL, notes, “As more data centres are required regionally, the conversation will inevitably shift towards greening the real estate supporting this sector and alignment with more aggressive ESG strategies.”

Kunal Desai, global emerging markets equities fund manager at GIB Asset Management, said that companies in Asia are now embracing ESG because they have realised that integrating sustainability into their business model has the potential to boost their bottom line.

Furthermore, Asian businesses that have benefitted the most from an ESG perspective saw the strongest returns for investors, reported ESG Clarity.

Desai emphasised that while emerging Asia still has a long way to go, profitability is possible, especially when supported by better governance.

According to Alex Chan, head of ESG client strategies for Asia Pacific at Invesco, investors will be more confident as regulations become clearer and more definite in the future. Also, as the region’s workforce becomes more skilled and equipped with ESG expertise, they will be able to help improve the ESG investment landscape.

The demand for data centres has soared due to the widespread adoption of e-commerce and digital communication tools.

The Property Report editors wrote this article. For more information, email: [email protected].

Recommended

Sign up

Subscribe to the latest Asia Property Awards news