Policy drivers

The report argues that ASEAN's data centre industry requires a more diverse range of corporate renewable procurement options and stronger national sustainability frameworks to ensure sustainable growth. It evaluates various mechanisms—such as Power Purchase Agreements (PPAs), green tariffs, and Renewable Energy Certificates (RECs)—noting that limited availability of these options, particularly in countries like Indonesia, hinders investment. The text emphasizes that national frameworks are essential for managing energy transition risks and improving data transparency, as international standards are not always tailored to regional needs.

• Data centres in ASEAN face challenges in sourcing clean power due to the limited accessibility of various procurement mechanisms. While corporate PPAs provide long-term price stability and guaranteed supply, they are not widely available in all markets and involve lengthy conclusion processes. Self-generation is hindered by high initial investment and limited space in big cities, while net metering is often restricted by regulatory caps on system size and export volume.
• The diversity of available renewable procurement options directly impacts clean electricity price ranges and market competition. Indonesia is identified as the only major economy in the focus group lacking a green tariff mechanism, resulting in a narrower price range compared to the other four countries. Expanding options like green tariffs, PPAs, and RECs is seen as a way to improve affordability and access.
• Power wheeling mechanisms, which allow shared grid access and attract private investment without straining state budgets, are at varying stages of implementation across the five focus countries; Indonesia is still considering this mechanism.
• National sustainability frameworks are critical for guiding green growth, as retrofitting operational data centres for energy efficiency is difficult due to the requirement for uninterrupted service. While Singapore and Malaysia have introduced frameworks, they were implemented after the industry boom, and there are currently no regulations requiring older, inefficient facilities to retrofit.
• Specific national incentives exist to promote green technology in data centres, with Singapore being the only country offering dedicated incentives for this purpose. Malaysia's Digital Ecosystem Acceleration (DESAC) scheme requires the adoption of at least one green technology as an eligibility criterion for data centres and cloud computing.

APA

Ember (2025). Policy drivers. https://ember-energy.org/chapter/policy-drivers/

Chicago

Ember. Policy drivers. 2025. https://ember-energy.org/chapter/policy-drivers/.

Wikipedia

{{cite report |author=Ember |title=Policy drivers |date=27 May 2025 |url=https://ember-energy.org/chapter/policy-drivers/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025policy, author = {{Ember}}, title = {{Policy drivers}}, institution = {Ember}, year = {2025}, month = may, url = {https://ember-energy.org/chapter/policy-drivers/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }