APDCA: collective action will strengthen data centre industry in APAC

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Picture of Simon Dux
By Simon Dux
Jeremy Deutsch (above, left) with Adam Gibson (above, right)

At the recent Sydney Cloud & Datacenter Convention hosted by W.Media, Jeremy Deutsch, chair of the Asia Pacific Data Centre Association (APDCA) and president of Vantage Data Centers, Asia Pacific, urged the industry to build collective strength and engage more closely with governments to meet the needs of a rapidly expanding digital infrastructure sector.

Deutsch, who joined W.Media’s Adam Gibson on stage for a fireside chat, painted a picture of an industry that has fundamentally shifted in public consciousness. A decade ago, he noted, mentioning data centres at social gatherings would draw blank stares. Today, the sector commands prime ministerial attention, with leaders like Australia’s Anthony Albanese travelling to Seattle specifically to announce AI infrastructure deals.

The pandemic proved a watershed moment. “I think if it wasn’t for our industry back in 2020, 2022, around the pandemic, a lot of things would have shut down,” Deutsch said. “Because of all that digital infrastructure that’s in place, we’ve really enabled the world to continue, the world to thrive.”

Upskilling and adapting to AI

Deutsch said the next wave of AI-driven demand is already reshaping the industry, creating an urgent need for new skills and workforce development. “As an industry, we’ve got a lot to do to make sure we upskill the capabilities in some of these markets,” he said. “Of course, as we enter any of these markets, there’s never enough people who are skilled to do data-centre work.”

He noted that data centres are becoming increasingly sophisticated as operators deploy liquid cooling systems and rethink traditional designs. Recounting his first tour of a data centre on Liverpool Street decades ago, Deutsch recalled seeing a mainframe with liquid cooling. “Fast forward all these years later, and we’re like, get all the water out of the data centres. Now we’re aggressively putting liquid back into the data centres,” he said.

The technology being enabled by this infrastructure continues to accelerate. Deutsch mentioned experimenting with ChatGPT-5, noting that “even when you talk to experts in their individual field, they are starting to say, hey, this thing really is getting to a level where it’s kind of getting quite scary.”
AI’s rapid adoption, he added, would require every part of the ecosystem to evolve – from design and construction to operations and sustainability. “We’re moving into a world where half-gigawatt to gigawatt campuses will be something we’ll see more of in the APAC region over the next few years,” Deutsch said, describing it as a new phase of growth requiring different skills and mindsets.

Regional sovereignty

Sovereignty and regulatory fragmentation remain front of mind for operators. “There are some data sovereignty elements depending on which country and which government is comfortable having their data in one location versus in another location. If you put data in Indonesia, it’s very hard to take the data out of Indonesia. If you have the data in China, it’s very hard to take the data out of China and put it into another country,” Deutsch said.

He described Asia Pacific as a region of “shifting sands” – highly dynamic, diverse, and increasingly driven by national priorities around data and digital infrastructure. The challenge is compounded by geography. While global observers refer to Asia Pacific as a single region, Deutsch noted it can take 10 to 16 hours to travel between major markets like Sydney, Mumbai and Tokyo — a stark contrast to Europe, where operators can travel between London and Frankfurt by train.

Historically, the region focused on two key hubs: Hong Kong and Singapore. “Both of those markets have had some dynamic changes over the last few years. There’s new submarine cables coming into play,” Deutsch said, explaining how connectivity infrastructure and sovereignty concerns are shifting investment patterns.

“You can’t pick data centres up and move them,” he said. “This is a 20- to 30-year infrastructure decision. You need to give us a lot of confidence before we put in billions of dollars into the ground that we can’t pick up and move.”

Despite the complexity, the region remains highly attractive for digital infrastructure investment. Deutsch alluded to Vantage Data Centers recently announcing a project involving USD 25 billion in funding for gigawatt-scale campuses, and he expressed confidence in the availability of capital. “For quality operators, for quality projects, there is no shortage of investment,” he said, noting that funding is flowing from the US, Europe, and increasingly from within Asia itself.

Engaging governments for understanding

Governments across the region, Deutsch said, are becoming far more engaged in digital infrastructure discussions – but they’re also asking tougher questions about resource use and economic benefit. “They’re concerned about the use of natural resources, they’re concerned about water, they’re concerned about even employment,” he said.

Citing a KPMG study commissioned by APDCA for Malaysia, Deutsch explained that the data centre industry delivers at least a four-to-one multiplier effect on jobs. “The magnifier effect is at least four to one on the jobs that get deployed directly for the data centre industry versus the entire ecosystem in that country,” he said. “Obviously, it brings new digital jobs, new developers, new capabilities.”

However, he noted that government understanding of the industry still varies widely across the region. The association’s role includes education and demystification. “Often we can look like large power users. In actual fact, we are consolidating things in a far more efficient format. We’re enabling digital infrastructure. We’re enabling the advantage for that country,” Deutsch said.

He pointed to APDCA initiatives that take utility providers and government stakeholders from one country to another, and to the United States, to see large-scale deployments firsthand. “It changes their perspective completely,” he said.

He argued that the efficiency gains achieved over the past two decades underscore the industry’s commitment to sustainability. “You had a PUE of four, if you even were measuring it,” Deutsch said of the early days. “Today you’re sub-1.3 PUEs that you’re really designing good facilities to.”

Building a collective voice

Deutsch said the APDCA, which includes members such as AirTrunk, Digital Realty, Equinix, Global Switch, NTT and Princeton, was founded to give the region’s operators a unified platform to engage with governments, regulators and international bodies.

Before APDCA’s formation around 18 months ago, there was no regional data centre association to represent operators collectively. “There’s no grouping where we can all get together and actually have a conversation that then gives us more weight as we talk to policy-makers and regulators,” Deutsch explained of the gap the organisation fills.

The association drew on models from the European Data Centre Association and the US Data Centre Coalition, but adapted them for Asia Pacific’s unique challenges – including the diversity of markets, varying levels of maturity, and the sheer geographical spread.

“All of the Asia-Pac governments – Australia, Malaysia, India, Japan, even Singapore – all of them are very interested in having a conversation with the industry association on behalf of the whole industry,” Deutsch said. He emphasised that having individual operators approach governments created fragmented messaging. “As an individual operator…you’re giving a point of reference that generally helps your business,” he said. By contrast, APDCA provides a unified industry position on standards, sustainability practices and economic value.

“Every single operator who’s a member of APDCA and the broader industry, we may not individually agree on everything,” Deutsch said. “But as an industry, we are putting forward together a collective voice, and that voice is being incredibly well received.”

The conviction to build

Throughout the conversation, Deutsch emphasised that digital infrastructure requires long-term conviction and commitment. The permanence of data centre investments – combined with the rapid pace of technological change and shifting regulatory landscapes – makes strategic planning both critical and challenging.

As the association continues its work across the region, Deutsch said the focus remains on education, skills development, and ensuring governments understand that data centres represent critical national infrastructure rather than mere power consumers. “We’re enabling a whole amount of digital commerce,” he said. “I think that’s a fantastic thing for all of us to be part of this industry.”

New Zealand Cloud & Datacenter Convention 2025

On 6 November 2025, New Zealand will play host to two landmark gatherings happening side by side – The New Zealand Cloud & Datacenter Convention 2025 and Interconnect World New Zealand 2025. Together, these events create the nation’s most influential platform for exploring the future of digital infrastructure, connectivity and innovation.

Delegates will gain exclusive insights into global and regional trends shaping cloud, data centers and interconnectivity- while also addressing New Zealand’s unique opportunities and challenges. Expect interesting keynotes, panel debates, fireside chats and case studies covering topics such as AI, cloud computing, sustainability, cybersecurity and interconnectivity.

To attend, please visit: https://clouddatacenter.events/events/new-zealand-cloud-datacenter-convention-2025/

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