Why HVO Is the Future of Backup Power for APAC Data Centres
The Data Centre Boom in APAC Needs a Cleaner Backup Solution
Asia-Pacific’s data centre market is on the rise, fast. The industry is expected to grow from $102.45 billion in 2024 to $174.81 billion by 2030, driven by demand for cloud computing, AI, and digital services.
With this surge comes an urgent question: what powers all this infrastructure when the grid fails?
Locally, Morgan Stanley estimates Australian data centres already consume ~5% of the country’s electricity, set to rise to 8–15% by 2030, while backup systems contribute millions of tonnes of emissions annually.
For years, the only answer has been fossil diesel generators. However, if APAC's data centre growth continues on this diesel-powered path, the region could face a massive carbon emissions challenge, putting climate targets and ESG commitments at risk.
What Is HVO and Why Is It Better?
Hydrotreated Vegetable Oil (HVO) is a renewable diesel made from waste oils and fats. It delivers up to 90% fewer CO₂ emissions across its lifecycle compared to fossil diesel.
Drop-in fuel, no generator modifications
Cleaner combustion & fewer particulates
Longer storage life (great for backup systems)
Suitable for cold and humid environments like APAC
HVO Adoption in Data Centres: The Stats
According to the APAC Data Center Market Report 2025-2030 forecast:
Globally more than 15% of new global data centre generators now run on HVO with Europe leading the curve
12.5% CAGR projected for HVO-powered generators in APAC driven by hyperscale expansion, sustainability goals, and increased awareness of emissions impact
Operators like Vantage, STT GDC, Amazon Web Services (AWS) and STACK are already using HVO across facilities in Singapore, the UK, the US, and beyond
This trend reflects a growing shift toward low-carbon backup power and APAC is catching up quickly.
Why This Matters for Sustainability
Backup power is mission-critical, but it shouldn’t come at the planet’s expense. By switching to HVO, data centres can:
Reduce their Scope 1 emissions
Comply with future carbon regulations
Future-proof infrastructure without expensive retrofits
Improve ESG scores and green credentials
As demand for digital infrastructure grows, HVO offers a scalable, low-emission path forward.