Inside Digital Edge’s 2026 ESG Report on AI & Energy Use

The rapid expansion of digital infrastructure, driven by cloud computing and AI, is reshaping global energy demand and sustainability priorities. 

Digital Edge, a Singapore based data centre platform, has released its ESG Report 2026 to show that data centres are pivotal to ESG agenda.

The report underscores that sustainable growth is no longer optional, but a fundamental requirement for operating in the sector. 

Against this backdrop, Digital Edge presents a model for integrating ESG into the core of digital infrastructure development.

ESG use in data centres

According to Digital Edge, sustainability is embedded directly into how data centres are designed, built and operated, rather than treated as a standalone initiative. 

ESG acts as a guiding framework across the full infrastructure lifecycle, reinforcing resilience, reliability and long-term performance.

The company structures its ESG approach around three core pillars:

• Respect for Resources
• Respect for People and Communities
• Respect for Transparency.

The pillars aim to ensure that environmental stewardship, social responsibility and governance are integrated into daily operations and strategic planning. 

Respect for Resources includes biodiversity, circularity, energy management, GHG emission and water management.

This approach is further reinforced through long-term partnerships and joint ventures, which Digital Edge highlights as critical to delivering sustainable infrastructure at scale. 

By aligning with partners that share similar governance and sustainability priorities, the company combines global standards with local expertise. 

Green finance and long-term sustainability

Strong governance and access to sustainable finance are key enablers of ESG progress at Digital Edge.

The company’s Green Finance Framework aligns capital allocation with sustainability objectives, funding projects that deliver measurable environmental benefits such as renewable energy adoption and green building certifications.

Through this framework, Digital Edge has secured significant green financing, including large-scale green loans to support data centre developments in markets such as South Korea and Indonesia. 

“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,” says John Freeman, CEO of Digital Edge, in the 2026 ESG Report.

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

These investments demonstrate how financial mechanisms can accelerate the deployment of sustainable infrastructure while maintaining disciplined growth.

The report also highlights governance as a critical pillar, with oversight structures ensuring accountability, transparency, and alignment with global standards such as the United Nations Global Compact.

This governance framework supports long-term value creation by integrating ESG considerations into both strategic planning and day-to-day operations.

Energy Demand and AI adoption

The report identifies AI and cloud adoption as major drivers of rising energy demand, significantly increasing the power intensity of data centres.

As workloads grow more complex, operators must expand capacity while managing GHG emissions and energy consumption.

This dual challenge lies at the heart of the sector’s sustainability transition.

Digital Edge has committed to achieving 100% renewable or carbon-free electricity across its operations by 2030, reflecting a long-term decarbonisation strategy aligned with global climate goals.

However, the report acknowledges that progress has been constrained by the rapid acceleration of AI-driven demand and the uneven availability of renewable energy across regional markets.

The company secured a long-term renewable power purchase agreement (PPA) covering up to 83 MW of solar capacity for its Mumbai campus, expected to avoid approximately 100,000 tonnes of CO₂ emissions annually. 

“Our India initiatives mark a major milestone in how we approach sustainability at scale,” says Andrew Rigoli, Chief Sustainability Officer of Digital Edge, in the report.

“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.”

This initiative not only supports low-carbon operations but also strengthens energy resilience and provides cost visibility in a high-demand environment.

By combining renewable energy procurement, emissions tracking, and strategic partnerships, Digital Edge demonstrates how data centre operators can respond to the growing energy demands of AI while advancing decarbonisation goals in a complex and evolving energy landscape.

Energy-efficient and AI infrastructure

Energy efficiency is a central pillar of Digital Edge’s sustainability strategy, particularly as AI workloads require higher-density computing environments.

The company targets advanced performance benchmarks, including a Power Usage Effectiveness (PUE) of 1.25 or better for new data centres, significantly below the global industry average.

To achieve this, Digital Edge has adopted a Flexible Data Center (FDC) design approach, emphasising modular construction, standardized configurations, and scalable infrastructure. These design principles reduce build times, improve efficiency and ensure consistent performance across different markets. 

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

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

In addition, facilities are increasingly designed to support liquid cooling technologies, which are essential for managing the heat generated by AI workloads.

The development of the AI-ready CGK hyperscale campus in Jakarta serves as a major example of this approach.

With a planned capacity of up to 500 MW, scalable to 1 GW, the campus integrates energy-efficient design, strong governance, and operational resilience.

Using circular infrastructure

The report highlights the importance of water stewardship, especially in regions facing high water stress, where data centre cooling can significantly impact local resources.

Digital Edge has implemented a large-scale recycled water initiative, deploying up to 10 million litres of treated greywater per day for cooling systems.

This reduces reliance on potable water while supporting efficient operations in a water-constrained environment.

In addition to water management, the company integrates circular economy principles into its infrastructure lifecycle.

This includes material reuse, recycling and waste reduction strategies that minimise environmental impact over time.

In 2025, a significant portion of operational waste was diverted from landfill, reflecting the effectiveness of these practices.

By combining water efficiency, circular design and resource-conscious operations, Digital Edge demonstrates how data centres can scale responsibly while reducing pressure on critical natural resources.