Power and climate risks shape Asia-Pacific data center growth. (Source: Freepik)
Around 67% of assessed data center sites in Asia-Pacific face moderate to high levels of climate risk, according to a report released by real estate consultancy Cushman & Wakefield on Nov. 12.
The report, Asia Pacific Data centers & Climate Resilience, developed with climate risk analytics company Jupiter Intelligence, assessed more than 300 data center locations across 30 cities in 13 markets. It examined exposure to eight climate hazards, including flooding, extreme heat, wind, drought, fire, precipitation, hail and cold.
The findings suggest that climate-related risks are becoming an important consideration for data center development, particularly as demand for digital infrastructure grows across the region.
Climate risks affect data center site selection
Climate risks vary across Asia-Pacific markets, with flooding, extreme heat and drought potentially affecting cooling requirements, water availability, power reliability and business continuity.
According to Cushman & Wakefield, data center operators are increasingly considering climate exposure alongside traditional site selection factors such as electricity availability, connectivity and market demand.
Andrew Green, Head of Data Centre Group, Asia Pacific at Cushman & Wakefield, said climate risks are influencing how operators evaluate locations, design facilities and plan infrastructure investment.
The report found that some of the region's fastest-growing data center markets also face elevated climate risks, although these risks have not necessarily prevented investment and development.
Johor in Malaysia illustrates the infrastructure challenges associated with rapid data center expansion, while Tokyo demonstrates how an established market continues to develop despite climate exposure.
Mumbai is another example of a market attracting data center investment despite higher climate risks, while Sydney highlights the role of long-term infrastructure planning.
Pritesh Swamy, Head of Research & Consulting, Data Centre Group, Asia Pacific at Cushman & Wakefield, said climate risk does not automatically determine investment outcomes, as operators also consider infrastructure capacity and their ability to manage local risks.
Figure 1: APAC Data center Growth Forecast and Climate Risk Score (Source: Cushman & Wakefield)
Power infrastructure becomes part of climate resilience
Beyond individual data center facilities, the report highlighted the importance of electricity networks, transmission infrastructure and utility systems in maintaining operations during climate-related disruptions.
Flooding, extreme weather and rising temperatures can affect power reliability and cooling systems, potentially increasing operational risks for data center operators.
These challenges are becoming more relevant as artificial intelligence and higher-density computing workloads increase demand for electricity and cooling infrastructure.
Matt Clifford, Head of Sustainability & ESG, Asia Pacific at Cushman & Wakefield, said relying solely on historical climate conditions may be insufficient for long-term infrastructure planning.
He said future climate projections should be considered earlier in investment, development and operational decisions.
The report concluded that data center developers and investors will need to assess climate exposure alongside electricity supply, connectivity and infrastructure capacity when planning future projects across Asia-Pacific.
