More than 1,150 data centre projects representing 32 GW of planned capacity are increasing pressure on power networks across the Asia-Pacific region, according to a Wood Mackenzie report.
A rapid expansion of data centres across the Asia-Pacific (APAC) region is putting greater pressure on power infrastructure, with access to electricity emerging as a major challenge for developers, according to a report by research firm Wood Mackenzie cited by ET.
The report said the region has more than 1,150 data centre projects in the pipeline, representing 32 GW of planned capacity. As these facilities place higher demand on power grids, regulators are increasingly requiring operators to ensure power reliability and secure access to clean energy.
Wood Mackenzie mentioned that developers are being asked to provide battery storage, manage curtailment risk and support grid stability measures to gain access to constrained power networks.
“For many developers, securing power is becoming more challenging than securing land, financing or permits,” said Xiaonan Feng, Principal Analyst, APAC Power and Renewables at Wood Mackenzie. “Across Asia-Pacific, grid availability is emerging as the defining constraint on data center growth.”
The report said India, Japan and South Korea are introducing incentives and policy frameworks aimed at reducing pressure on congested metropolitan centres while supporting the development of new digital infrastructure corridors.
However, it cautioned that while such measures can help improve access to power, they could also increase project costs and operational complexity.
“The cost of power is no longer limited to electricity bills and connection fees,” Feng said. “Storage, curtailment management and clean energy obligations are becoming core infrastructure requirements that can materially affect project economics.”
