Asia-Pacific data centre boom shifts power burden to developers, says Wood Mackenzie

By Romel S. Gurky

More than 32 gigawatts (GW) of planned data centre capacity across over 1,150 projects in Asia-Pacific is prompting regulators to shift power reliability and clean energy obligations onto developers, according to Wood Mackenzie.

The consultancy said operators are increasingly being required to install battery storage, manage curtailment risks and support grid stability to secure access to constrained electricity networks.

Markets including Japan are considering conditional grid access that allows earlier connections in exchange for load-shedding capabilities and energy storage, while Australia is proposing rules requiring large data centres to help stabilize power systems during grid disturbances.

Meanwhile, Singapore, Malaysia and South Korea are tightening access to power networks through requirements linked to energy efficiency, renewable energy procurement and grid impact assessments.

Wood Mackenzie said power-related costs are becoming a key factor in data centre development, alongside land, financing and permits.

"Grid availability is emerging as the defining constraint on data centre growth," said Xiaonan Feng, principal analyst for Asia-Pacific power and renewables at Wood Mackenzie.

The report noted that battery storage, renewable energy procurement and self-firming requirements are increasingly becoming core infrastructure costs that could significantly affect project economics across the region.

Editing by Alexander Ginting