ESG to impact data centers

JONES Lang Lasalle Inc. (JLL) reported that 85 percent of data center managers in Asia Pacific believe that sustainability will significantly impact their operations and decision-making.According to the company's findings, a survey showed that the growth of the sector will increasingly be influenced by environmental, social and governance (ESG) considerations. This was conducted across 505 data center managers across Asia Pacific, 70 percent run by enterprises and 30 percent by service providers, 30 of which are located in the Philippines.Demand for these structures has skyrocketed due to the widespread adoption of digital communication tools and e-commerce. To fuel this growth, the amount of energy used by data centers has doubled every four years, and the sector now accounts for up to 4 percent of greenhouse gas emissions globally."Addressing concerns surrounding greenhouse emissions is a priority, especially when it comes to our energy and sustainability practices in the Philippines," Nix Garchitorena, JLL Philippines energy and sustainability manager, said.However, only 28 percent of operators polled declared that they have visibility of their energy usage data, which would enable them to add transformational business value, maximize efficiency and reduce waste."Asia Pacific is arguably the most dynamic data center market globally and strategies will need to adjust to meet the changing operating environment and increased ESG expectations," Chris Street, JLL head of data centers for Asia Pacific, explained. "The sector urgently needs to address its expanding contribution to global emissions, so operators need advice along the entire real estate life cycle in order to address the sizable sustainability issues they face."Furthermore, Charlie McNaught, JLL Philippines' director for capital markets, said the interest in the data center sector in the Philippines is not surprising."The country is home to 76 million internet users who spend an average of more than 10 hours on the internet daily. This provides a solid base to fuel data consumption which is expected to further grow as we anticipate greater data demand in the future. With the sector in the Philippines still in its early stages, it allows managers to plan in their development strategy to ensure their facilities are constructed and operated in line with current and future ESG expectations," he said.According to JLL's analysis, becoming more sustainable and socially responsible is the top strategic priority for data centers in the next two years, ranked ahead of traditional productivity and efficiency metrics.

JONES Lang Lasalle Inc. (JLL) reported that 85 percent of data center managers in Asia Pacific believe that sustainability will significantly impact their operations and decision-making.

According to the company’s findings, a survey showed that the growth of the sector will increasingly be influenced by environmental, social and governance (ESG) considerations. This was conducted across 505 data center managers across Asia Pacific, 70 percent run by enterprises and 30 percent by service providers, 30 of which are located in the Philippines.

Demand for these structures has skyrocketed due to the widespread adoption of digital communication tools and e-commerce. To fuel this growth, the amount of energy used by data centers has doubled every four years, and the sector now accounts for up to 4 percent of greenhouse gas emissions globally.

“Addressing concerns surrounding greenhouse emissions is a priority, especially when it comes to our energy and sustainability practices in the Philippines,” Nix Garchitorena, JLL Philippines energy and sustainability manager, said.

However, only 28 percent of operators polled declared that they have visibility of their energy usage data, which would enable them to add transformational business value, maximize efficiency and reduce waste.

“Asia Pacific is arguably the most dynamic data center market globally and strategies will need to adjust to meet the changing operating environment and increased ESG expectations,” Chris Street, JLL head of data centers for Asia Pacific, explained. “The sector urgently needs to address its expanding contribution to global emissions, so operators need advice along the entire real estate life cycle in order to address the sizable sustainability issues they face.”

Furthermore, Charlie McNaught, JLL Philippines’ director for capital markets, said the interest in the data center sector in the Philippines is not surprising.

“The country is home to 76 million internet users who spend an average of more than 10 hours on the internet daily. This provides a solid base to fuel data consumption which is expected to further grow as we anticipate greater data demand in the future. With the sector in the Philippines still in its early stages, it allows managers to plan in their development strategy to ensure their facilities are constructed and operated in line with current and future ESG expectations,” he said.

According to JLL’s analysis, becoming more sustainable and socially responsible is the top strategic priority for data centers in the next two years, ranked ahead of traditional productivity and efficiency metrics.

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