White Paper ASEAN Centre for Energy2024 Copyrights© ASEAN Centre for Energy, 2024 Unless otherwise stated, all content and materials in this publication are the exclusive property of the ASEAN Centre for Energy (ACE) and are protected bycopyright. Permission to use, share, copy, print, and/or store these materials isgranted, provided that proper attribution to ACE is clearly indicated. Materials inthis publication attributed to third parties may be subject to third-party copyrightand are governed by separate terms of use and restrictions, including limitationson commercial use. Published by: ASEAN Centre for EnergySoemantri Brodjonegoro II Building, 6thfl.Directorate General of ElectricityJl. HR. Rasuna Said Block X-2, Kav. 07-08Jakarta 12950, IndonesiaTel: (62-21) 527 9332 | Fax: (62-21) 527 9350 32E-mail: communication@aseanenergy.orgwww.aseanenergy.org Forewords – ACE One of the key drivers of economic growth in the ASEAN region is digital transformation,which keeps growing and evolving to cater to consumers' and businesses' demands.Digital services embark on a rapid journey, thus creating a surge in data centeroperations. Data center markets are developing in the ASEAN region, creating apromising future for investors. Even so, the emergence of data centers has not beenwithout its indispensable effects. Data center contributes to a large increase in energyconsumption–from server operations to cooling systems that need to be kept poweredon constantly. Data center is a critical piece of infrastructure, yet it is also necessary to remember thatenergyconsumption will continue to increase during,and with the sight of,theburgeoning demand for data. Larger consumption means higher energy costs, andbusinesses are finding ways to cut the cost burden, even through limiting operationalhours. Toovercome this problem, it is essential to improve system efficiency and lookfor alternative cleaner energy in furtherance of data center operations. With a goal oftransitioning to a low-carbon economy, ASEAN countries need to balance environmentalprotection while still attracting global players for countries’ economic growth. Practicing the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025Phase II 2021-2025 in the Programme Area of Energy Efficiency & Conservation, datacenter transformation will hopefully move towards green practices for a sustainablefuture in the ASEAN region. The collaborative work and approach are depicted in thisWhite Paper on Building Next Generation Data Center Facility in ASEAN. The studyexploresthe trends of data centers in ASEAN and worldwide.It expounds ontechnologies and methods that ASEAN countries could adopt as a means to reach theirambitious targets for energy efficiency. With a large and continuous rise of online services, countries in the ASEAN region seembeneficial for data center markets. However, challenges to achieving sustainable datacenters still arise, and serious commitment is needed to create a data center that meetslow-carbon requirements. This White Paper reflects on challenges in data centerinstallations and operations, as well as a comprehensive discussion on the matter oftechnologytrends and ways to address energy consumption,cost savings,andenvironmental responsibility. Moreover, it provides policy recommendations for datacenter markets, both mature and emerging markets, for the development of datacenters. We expect this article will come as a good reference for the energy technologysector, providing innovative products and solutions, along with recommendations forpolicymakers. Forewords – Huawei With the rapid development of the intelligent world and the booming digital economy,computing power and data have become key production factors, and the global datavolume has increased sharply. According to the Intelligent World 2030 report, it isexpected that by 2030, general computing power will increase by 10 times, and artificialintelligence (AI) computing power will grow by 500 times. The explosive growth of datavolume and computing power drives the development of high-density and large-scaledata centers (DCs), opening up new space for DC development. It is estimated that theglobal data center investment will increase from the current USD 35 billion to USD 54.3billion by 2027. AI requirements and industry digital transformation requirements in theASEAN region drive the development of large-scale cloud and intelligent computingcenters and multi-network edge DCs. ASEAN governments have also issued AI strate-gies and digital transformation policies. Currently, there are two definite trends in the development of the ASEAN data centerindustry, that are intelligent and sustainable. However, there are many challengesaccompanyingthese trends.Firstly,the massive deployment of DCs has higherrequirements on power capacity, renewable energy ratio, and power grid stability.ASEAN governments are advised to adopt active energy policies to encourage DCdevelopment. New DC