Global Spotlight On Sustainable Finance To Stay Strong Amid Data Centre Growth -- Moody's
KUALA LUMPUR, Jan 28 (Bernama) -- The global spotlight on sustainable finance is expected to remain strong this year amid the rapid growth of data centres, said Moody’s Ratings.
Moody’s Ratings senior vice president - sustainable finance and head of assessments for Asia-Pacific (APAC) Jeffrey Lee said more labeled bond frameworks are expected to start to incorporate data centre projects in their scope, signaling a broader adoption of sustainable finance in the tech infrastructure sector.
“I think we are going to see more and more data centre finance under labeled instruments, as well as any other innovative structures in the coming years.
“The surge in global demand for data centres will require substantial capital investment to support accelerating digitalisation, creating a growing pipeline of sustainable financing opportunities,” he said during the 2026 Sustainable Finance Credit and Sustainable Bond Outlook - APAC edition held virtually.
He said electricity consumption by data centres is projected to reach around 600 terawatts, representing a significant increase of about 20 per cent from 2024.
Against this backdrop, issuers are increasingly adapting their labeled bond frameworks to include data centre-related investments, particularly those focused on energy efficiency.
Lee said major global operators have already begun moving in this direction.
For instance, GDS Holdings Ltd in China has enhanced its disclosures through net-zero assessments, providing greater transparency around transition plans.
In the United States, Equinix has introduced green financing frameworks that prioritise energy-efficient data centres, while in Asia, DigitalEdge (Singapore) Holdings Pte Ltd has similarly incorporated data centre projects into its sustainable financing approach.
In addition, European issuers are also exploring energy efficiency-linked financing structures for digital infrastructure.
He said that while corporates remain the primary issuers in this segment, Moody’s expects a broader range of entities to enter the market.
Last week, Moody’s Ratings forecast that global issuance of sustainable bonds is expected to reach around US$900 billion (US$1 = RM3.92) in 2026.
Commenting on the forecast, Lee said the global issuance of sustainable bonds this year is still expected to be below the highs recorded between 2021 and 2024.
“One of the big reasons for that is the shift in sentiment towards sustainability in some regions, along with a tougher macro and geopolitical environment as well,” he said, adding that green bonds, in particular will continue to do the heavy lifting for the overall sustainable bond issuances.
Sustainable bonds, which include green, social, sustainability, and transition bonds, are issued to finance projects with environmental and social objectives.
-- BERNAMA