Sustainability Takeaways from Digital Edge’s ESG Report 2026

The expansion of cloud computing and AI is placing new pressure on data centre energy systems, forcing operators to rethink how infrastructure is designed, powered and managed.

Digital Edge, a Singapore-based data centre platform, sets out its response in its ESG Report 2026, positioning sustainability as a core requirement for digital infrastructure rather than an add-on.

The report links rising compute demand directly to energy consumption, highlighting how AI workloads are increasing both scale and intensity across facilities.

As operators expand capacity, the challenge is not only to deliver performance but also to manage emissions, resource use and long-term resilience.

Embedding ESG into data centre operations

Digital Edge frames sustainability as a guiding principle for how infrastructure is planned, built and operated – ensuring that performance aligns with environmental and social considerations.

The company structures its approach around three pillars – Respect for Resources, Respect for People and Communities and Respect for Transparency.

Together, these pillars cover areas such as energy management, greenhouse gas emissions, water use, biodiversity and governance oversight.

Rather than treating ESG as a separate function, Digital Edge integrates it into daily operations and long-term planning.

This includes working with partners that share similar sustainability standards, allowing projects to combine global frameworks with local expertise.

The aim is to create infrastructure that is both reliable and efficient while meeting regulatory and community expectations.

Financing sustainable infrastructure growth

Access to capital plays a central role in scaling sustainable data centres.

Digital Edge uses a Green Finance Framework to align investment with environmental outcomes, directing funding towards projects that include renewable energy integration and green building certifications.

Through this framework, the company secures green loans across several markets, including South Korea and Indonesia.

These financing mechanisms support expansion while ensuring that sustainability targets remain part of project delivery.

John Freeman, CEO of Digital Edge, highlights a major development outlined in the report.

“A key milestone in 2025 was the rebranding of our Indonesian operation to Digital Edge Indonesia, alongside the launch of our AI-ready CGK hyperscale campus in Jakarta,” he says.

“Representing a US$4.5bn investment, the campus is designed to deliver 500 MW of IT capacity, scalable up to 1 GW.”

John’s comments point to the scale of investment required to meet AI demand, as well as the need to embed sustainability into large hyperscale developments from the outset.

Governance structures support this approach, with oversight frameworks designed to ensure accountability transparency and alignment with international standards such as the United Nations Global Compact.

AI workloads and rising energy demand

The report identifies AI as a central factor behind increasing energy consumption in data centres.

Compared with traditional cloud workloads, AI applications require higher-density compute environments, which in turn demand more power and generate more heat.

This creates a dual challenge – expanding capacity while controlling emissions and maintaining efficiency.

Digital Edge has committed to sourcing 100% renewable or carbon-free electricity across its operations by 2030.

However, the report notes that achieving this target depends on regional energy markets, where renewable availability can vary.

One example is a long-term power purchase agreement in Mumbai covering up to 83 MW of solar capacity.

This agreement is expected to avoid around 100,000 tonnes of CO₂ emissions each year while providing a stable source of renewable power.

Andrew Rigoli, Chief Sustainability Officer of Digital Edge, explains how these initiatives support operations.

“Our India initiatives mark a major milestone in how we approach sustainability at scale,” he says.

“From pioneering large-scale recycled water development to securing long-term renewable energy, our collaboration with customers partners and communities is proving that responsible infrastructure and performance go hand in hand.”

Energy procurement partnerships are becoming essential as operators respond to fluctuating demand and supply conditions.

Designing for efficiency and performance

Improving energy efficiency is another key focus as AI workloads place greater strain on infrastructure.

Digital Edge targets a Power Usage Effectiveness (PUE) of 1.25 or lower for new facilities.

This metric compares total facility energy use with the energy consumed by IT equipment, with lower values indicating higher efficiency.

To achieve this, the company uses a Flexible Data Center design model.

This approach relies on modular construction, standardised components and scalable layouts – allowing facilities to be deployed more quickly while maintaining consistent performance.

Cooling systems are also evolving to meet the demands of high-density computing.

Liquid cooling technologies are increasingly adopted to manage heat more effectively than traditional air-based systems, particularly in AI environments where thermal loads are higher.

John reinforces the company’s energy strategy within this context.

“We continue to target 100% renewable or carbon-free electricity across our operations by 2030,” he says.

“In 2025 and early 2026, we secured landmark green financing across Korea and Indonesia totalling almost US$1.25bn, reinforcing the alignment between capital and sustainable infrastructure.”

Managing water and resource use

Water use is another critical factor, particularly in regions where supply is limited.

Data centre cooling can require significant volumes of water, making efficiency measures essential.

Digital Edge addresses this through recycled water systems, including a project that delivers up to 10 million litres of treated greywater per day for cooling.

This reduces reliance on potable water while maintaining operational performance.

The company also applies circular economy principles across its infrastructure lifecycle.

This includes reusing materials, recycling waste and reducing landfill output, helping to limit environmental impact over time.

By combining energy efficiency, renewable power procurement, water management and governance oversight, Digital Edge outlines how data centres can expand capacity while managing the operational demands created by AI and cloud computing.