Digital Edge’s 2026 ESG Report Highlights Sustainable Growth

APAC data center operator releases fifth sustainability report

Digital Edge published its 2026 ESG report on 29 April. The Singapore-based data center operator now runs 31 facilities across Asia-Pacific. The report, titled “Staying Power: Scaling Up, Standing Out”, sets out progress on energy, water, and green finance as AI workloads reshape infrastructure demand.

The company operates sites in India, Indonesia, South Korea, Japan, and Thailand. All facilities support AI-ready digital infrastructure. Digital Edge targets a Power Usage Effectiveness rating of 1.25 for new builds. This places the operator in the top 15% globally for sustainability performance according to EcoVadis assessments.

AI’s rapid expansion is driving unprecedented energy consumption across the data center sector. Arthur D. Little projects global data center power demand could reach 1,000 terawatt-hours by 2030. That represents roughly 3% of worldwide electricity generation. Carbon emissions from data centers may double over the same period to account for 1% of global totals.

For context, a single large data center can use as much water daily for cooling as a medium-sized town. Connection delays for new capacity now extend to seven years in some regions as grid operators struggle to meet demand. By 2030, AI workloads alone could claim a quarter of all data center capacity.

Renewable energy reaches 26% of portfolio supply

Digital Edge increased renewable electricity use to 26% across its operations. This represents progress from 21% in 2024. The company maintains its target of 100% renewable power by 2030.

Previous reports documented the shift. The 2025 edition highlighted full renewable conversion at Jakarta’s EDGE1 and EDGE2 sites. Portfolio-wide renewables stood at 20% in 2024. Digital Edge had set an interim goal of 50% by 2025.

The company secured nearly $1.25 billion in green financing during the reporting period. This includes $582 million for the SEL3 facility in South Korea. A further $665 million supports the CGK Campus in Indonesia. Both loans fund construction designed to minimize environmental impact.

Green finance frameworks undergo independent assessment. Digital Edge achieved a Moody’s SQS2 rating in previous reporting cycles. This score validates alignment between funding terms and sustainability outcomes. Proceeds specifically support renewable installations, efficiency improvements, and LEED-certified construction.

LEED Gold certification now covers the EDGE2 site in Jakarta. Japan’s TYO7 facility holds Silver status. Five additional locations in India, Thailand, and Indonesia are pursuing Silver certification. These credentials verify reduced carbon intensity through design, materials, and operational practices.

Navi Mumbai site uses 10 million liters of treated greywater daily

Digital Edge introduced recycled water at its BOM campus in Navi Mumbai. The facility now draws up to 10 million liters of treated greywater each day for cooling systems. This diverts demand away from potable municipal supplies.

The volume saved could meet daily water needs for approximately 100,000 people. Water scarcity affects many of Digital Edge’s markets. India faces particular pressure as data center construction accelerates alongside population growth and climate variability.

Conventional data centers rely on evaporative cooling. This consumes substantial freshwater volumes. Greywater reuse represents an alternative approach. Treated wastewater from municipal or industrial sources undergoes filtration before entering cooling towers. The practice reduces stress on drinking water infrastructure.

Industry adoption remains limited. Digital Edge describes its Mumbai implementation as a first for the sector. The company has not disclosed whether similar systems will extend to other sites. Water availability varies significantly across APAC markets.

Meanwhile, the design Power Usage Effectiveness target of 1.25 addresses energy efficiency. PUE measures total facility power against IT equipment load. A rating of 1.25 means 25% overhead for cooling, lighting, and auxiliary systems. This compares favorably against industry averages above 1.5.

AI expansion drives resource pressure across data center sector

Global data center energy consumption could reach 470 terawatt-hours by 2030. Current usage sits near 90 terawatt-hours. Arthur D. Little warns AI’s growth places “unprecedented strain on global resources, leading to systemic vulnerabilities.”

Some technology hubs already face capacity constraints. Data centers may consume up to 40% of local electricity in certain markets. Grid connection queues have lengthened as utilities assess reinforcement requirements. Operators increasingly site facilities near generation sources or secure dedicated power supplies.

Emissions trajectories follow energy trends. Carbon output from data centers could double by 2030 without intervention. This occurs despite efficiency gains because absolute capacity growth outpaces improvements. AI workloads demand more compute density than traditional applications. Training large language models requires weeks of continuous processing across thousands of chips.

Transparency gaps complicate assessment. Fewer than 3% of AI models disclosed environmental data in 2024. Developers rarely publish energy consumption or carbon footprints. This makes independent verification difficult for enterprises evaluating supplier claims.

Regulatory attention is increasing. Governments in several jurisdictions now require data center operators to report energy and water use. Some impose efficiency standards for new builds. Planning approvals increasingly hinge on renewable commitments and grid impact mitigation.

Five points about Digital Edge’s 2026 ESG report

• Digital Edge published its fifth annual ESG report on 29 April 2026, covering 31 data centers across India, Indonesia, South Korea, Japan, and Thailand.
• Renewable electricity rose to 26% of portfolio supply, advancing towards the company’s 2030 target of 100% clean power.
• The operator secured $1.25 billion in green loans, including $582 million for South Korea’s SEL3 site and $665 million for Indonesia’s CGK Campus.
• A Navi Mumbai facility now uses up to 10 million liters of treated greywater daily for cooling, saving potable water sufficient for roughly 100,000 people.
• Digital Edge achieved LEED Gold at Jakarta’s EDGE2 and Silver at Japan’s TYO7, with five more sites pursuing certification across the region.

How rising AI demand reshapes infrastructure priorities

John Freeman, Group CEO at Digital Edge, stated that “responsible growth is no longer optional; it is now a baseline requirement from customers, investors, and regulators.” This reflects shifting expectations as AI infrastructure scales.

Enterprises procuring data center capacity increasingly scrutinize environmental performance. Large technology firms face shareholder pressure on Scope 3 emissions. Data center services represent a material portion of these indirect footprints. Consequently, buyers favor operators demonstrating credible decarbonization pathways.

Financial markets similarly incorporate sustainability metrics. Green bonds and loans offer pricing advantages when tied to verifiable targets. Digital Edge’s $1.25 billion in green financing illustrates capital availability for qualifying projects. Conversely, operators without clear environmental strategies may face higher borrowing costs or limited investor interest.

Regulatory frameworks continue tightening. The European Union’s Energy Efficiency Directive now covers data centers explicitly. Singapore introduced a moratorium on new facilities in 2019, lifting it conditionally in 2022 with strict efficiency requirements. Other APAC governments are considering similar measures.

For UK businesses, these developments matter in several ways. Companies relying on APAC data centers for operations or cloud services should assess provider sustainability credentials. Supply chain due diligence increasingly extends to digital infrastructure. Customers in regulated sectors may need to report indirect emissions from hosted services.

Furthermore, procurement teams should evaluate resilience alongside cost. Data centers dependent on strained grids face operational risks. Those securing renewable supply or operating at high efficiency reduce exposure to energy price volatility. This consideration applies whether operations sit in the UK or abroad.

What UK businesses should consider about data center sustainability

UK firms with operations or suppliers in Asia-Pacific should review their data center arrangements. Digital infrastructure underpins cloud computing, software-as-a-service platforms, and remote operations. However, many businesses lack visibility into the environmental footprint of these services.

Start by identifying where data resides and processes run. Cloud contracts often distribute workloads across multiple regions. Providers typically offer carbon reporting tools or sustainability dashboards. Request this information if not already available. Understanding baseline emissions enables target-setting and progress tracking.

Evaluate provider commitments against delivery timelines. Many operators pledge 100% renewable energy by 2030 or later. Examine interim milestones and current achievement levels. Digital Edge reports 26% renewable supply today against a 2030 target. This trajectory matters more than distant goals alone.

Consider water alongside energy. Data centers in water-stressed regions face operational and reputational risks. Facilities using recycled or non-potable sources demonstrate better resource stewardship. UK businesses should weigh this factor when selecting providers or regions for deployment.

Procurement decisions increasingly influence corporate sustainability performance. For companies with science-based targets, Scope 3 emissions often dominate total footprints. Purchased services, including data center capacity, contribute significantly. Choosing operators with credible decarbonization plans supports overall emissions reduction.

Additionally, regulatory requirements are expanding. The UK’s mandatory climate disclosures under the Financial Conduct Authority rules affect over 1,300 companies. These firms must report financed and supply chain emissions. Data center use falls within this scope. Accurate reporting depends on provider transparency.

Finally, consider efficiency metrics when evaluating proposals. Power Usage Effectiveness remains an industry standard despite limitations. A PUE of 1.25 indicates well-designed infrastructure. Facilities exceeding 1.5 waste substantial energy on non-computing functions. This translates directly to higher carbon intensity and operating costs.

Where to find additional information on data center sustainability

The UK government provides guidance on sustainable ICT through the Greening Government ICT Strategy. This document outlines expectations for public sector technology procurement. Principles apply broadly to private sector decisions as well.

For technical standards, the British Standards Institution publishes specifications on energy management systems. These cover measurement, reporting, and improvement frameworks applicable to data center operations.

The Institution of Environmental Management and Assessment offers resources on carbon management hierarchies. This guidance helps businesses prioritize reduction over offsetting when addressing emissions.

Arthur D. Little’s research on AI energy demand provides industry context. However, businesses should consult multiple sources when assessing sector trends. The International Energy Agency publishes periodic updates on data center electricity consumption through its website.

Companies seeking support with supply chain emissions measurement can explore carbon reporting compliance services. Understanding Scope 3 footprints enables informed procurement decisions and regulatory compliance.