Asia Pacific Carbon Neutral Data Center Market Revenue Grows at a CAGR of 18.2%

Introduction

Straits Research published a report, “Asia Pacific Carbon Neutral Data Center Market Size & Outlook, 2026–2034”. According to the study, the market size is valued at USD 8.9 billion in 2025 and is projected to expand to USD 41.4 billion by 2034, registering a compound annual growth rate (CAGR) of 18.2%.

Market Dynamics

The digital transformation in the Asia Pacific has accelerated; cloud and AI workloads have expanded very rapidly, while there is a strong shift toward infrastructure aligned with sustainability. As hyperscale and high-density computing environments experience rapid adoption, the need for low-emission facilities with energy efficiency increases to be able to manage the increasing volume of data. The surge in e-commerce, fintech, streaming, and smart-manufacturing ecosystems across APAC furthers the demand to have carbon-neutral data centers that are closely aligned with operational performance and diminished environmental impact.

Strengthening corporate net-zero commitments and sustainability disclosure requirements across the Asia Pacific economies is a catalyst for growth. Economies like Singapore, Japan, South Korea, Australia, and India promote greener digital infrastructure development through renewable procurement programs, more stringent efficiency standards, and carbon-intensity reporting in a transparent manner. Indeed, growing investments in advanced cooling, renewable-backed power supply, and large-scale storage solutions have presented new opportunities to operators. With real-time carbon monitoring, energy-optimization systems, and resource-efficient facility designs, competitive strategies are being reshaped in ways that will enable this market to grow rapidly and support APAC's long-term decarbonization goals.

Market Highlights

• Segmental Leadership: The Hyperscale Data Centers segment holds the largest share (46.12%), while Edge Data Centers record the fastest CAGR (21.34%).
• Technology Outlook: Renewable Power Procurement is the leading decarbonization pathway with 41.58% market share.
• End-Use Industry: The manufacturing segment will see the highest CAGR of 19.84% during the forecast period, mainly because of production ecosystems.

Competitive Players

1. GDS Holdings
2. Digital Realty
3. Alibaba Cloud
4. Tencent Cloud
5. NEC Corporation
6. Keppel DC REIT
7. AirTrunk
8. NEXTDC
9. Mapletree Industrial Trust
10. Bridge Data Centres
11. NTT Communications
12. Huawei Technologies
13. Chindata Group
14. Global Switch
15. Princeton Digital Group
16. AIMS Data Centre
17. ST Telemedia Global Data Centres
18. Equinix
19. Digital Edge
20. Supernap
21. Others

Recent Developments

Segmentation

1. By Data Center Type
   1. Hyperscale Data Centers
   2. Colocation Data Centers
   3. Enterprise Data Centers
   4. Edge Data Centers
   5. Others
2. By Decarbonization Technology
   1. Renewable Power Procurement
   2. On-Site Renewable Generation
   3. Energy Storage Systems (BESS)
   4. Advanced Cooling Technologies
3. By End-Use Industry
   1. ICT
   2. BFSI
   3. Government & Public Sector
   4. Healthcare
   5. Manufacturing
   6. Retail 
   7. Others
4. By Region
   1. China
   2. Japan
   3. India
   4. South Korea
   5. Rest Of Asia Pacific