Policy drivers

This report by Ember examines the policy and procurement drivers necessary for the decarbonisation of data centres in the ASEAN region, highlighting the need for diverse renewable energy procurement options and national sustainability frameworks.

• Data centres in ASEAN face challenges in achieving low-carbon requirements, necessitating a combination of enabling policies, public-private partnerships, harmonised regional standards, and skills development to support sustainable growth.
• The availability and variety of renewable energy procurement mechanisms—including corporate Power Purchase Agreements (PPAs), green tariffs, and Renewable Energy Certificates (RECs)—impact clean electricity prices and market competition. Indonesia is noted as the only major economy among the five focus countries lacking a green tariff mechanism, which correlates with a narrower price range for clean electricity.
• Corporate PPAs are preferred for securing stable, long-term clean energy supplies, but their availability varies. For instance, companies in Singapore frequently utilize PPAs from other markets to meet renewable commitments. While large tech firms can secure large-scale PPAs, smaller data centre companies require more accessible schemes like virtual PPAs or green tariff subscriptions to afford wind and solar power.
• National sustainability frameworks are critical for guiding green growth, as retrofitting operational data centres is difficult due to the requirement for uninterrupted service. While Singapore and Malaysia have introduced such frameworks, they were implemented after the industry boom, and there are currently no regulations forcing older, inefficient facilities to retrofit.
• Specific national incentives vary across the region: Malaysia's Digital Ecosystem Acceleration (DESAC) scheme requires the adoption of at least one green technology for eligibility, while Singapore is the only country providing dedicated incentives specifically for adopting green technologies in data centres to encourage research and development.

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} }