Vena Group, a Singapore-based renewable energy developer, is exploring the establishment of green data centers in markets including Singapore, Malaysia, and Japan.

The initiative aims to meet the rising energy demands from the AI sector.

Vena Group’s new subsidiary, Vena Nexus, is in talks with ten technology firms from the US and Asia to develop large-scale data facilities powered by renewable energy.

Simone Grasso, global head of Vena Nexus, confirmed the discussions but did not disclose the identities of the companies involved.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Green data center market surges as AI drives unprecedented energy demand

Vena Group’s focus on green data centers directly targets a market projected to grow from US$57.84 billion in 2023 to US$160.87 billion by 2031, a compound annual growth rate of 18.87%1.

This expansion is largely driven by AI technologies creating substantial new power requirements, with data centers estimated to drive approximately 44 GW of additional demand by 20302.

The scale of this challenge is significant: data center electricity usage is expected to nearly double from 536 TWh in 2025 to 1,065 TWh by 2030, putting immense stress on existing electrical grids3.

Data centers already consumed about 4.4% of total US electricity in 2023 and are projected to rise to between 6.7-12% by 2028, highlighting why companies like Vena are prioritizing both capacity and sustainability4.

This surge explains why Vena’s Simone Grasso noted that “after the AI breakthrough in 2023, we noticed a lot more demand for power,” positioning the company to address both the economic opportunity and environmental challenge.

2️⃣ Asia emerges as strategic battleground for green data center development

Vena’s focus on Singapore, Malaysia, and Japan aligns with broader industry trends showing Asia-Pacific as an emerging key market for sustainable data centers, supported by government-backed green initiatives5.

The region presents unique advantages: Singapore has established itself as a digital hub with advanced infrastructure, while Malaysia offers more affordable land and operating costs, creating complementary markets for data center operators1.

Companies developing green data centers in Asia must navigate distinctive regional challenges, including tropical cooling requirements in Southeast Asia that significantly impact energy efficiency strategies compared to temperate regions3.