AI Boom Drives Data Center Evolution Across Asia Pacific, Reports Vertiv

As more Asia Pacific companies embrace artificial intelligence to enhance their operations, the strain on data centres is intensifying significantly. Legacy facilities, originally engineered for earlier computing generations, are finding it difficult to manage the substantial energy consumption and cooling requirements of modern AI workloads. By 2030, GPU-driven tasks could elevate rack power densities close to 1 MW, making minor upgrades insufficient. Operators are now shifting toward purpose-built “AI factory” data centres, designed from the ground up to handle these demands.

AI News sat down with Paul Churchill, Vice President of Vertiv Asia, to explore how the region is gearing up for this transformation and the infrastructure changes on the horizon.

Explosive market expansion is accelerating the pace

The AI data-centre market is anticipated to soar from $236 billion in 2025 to nearly $934 billion by 2030. This uptick is fuelled by swift AI integration across finance, healthcare, and manufacturing. These industries depend on high-performance computing environments run by dense GPU clusters, which demand considerably more power and cooling than conventional server setups.

In Asia Pacific, this trend is amplified by government-led digitalisation initiatives, the rollout of 5G networks, and the growth of cloud-native and generative AI applications. Together, these factors are driving computational needs upward at an unprecedented rate across the region.

Churchill noted that satisfying this demand involves more than just bigger buildings. It requires smarter infrastructure plans that are scalable and sustainable. “Infrastructure leaders need to look beyond incremental upgrades. A future-ready approach means adopting AI-optimised infrastructure that merges high-capacity power systems, advanced thermal management, and integrated, scalable designs,” he mentioned.

Mounting cooling and power complexities

As rack densities climb from 40 kW to 130 kW, and might hit 250 kW by 2030, cooling and power delivery are becoming critical concerns. Traditional air cooling is proving inadequate under these conditions.

To overcome this, Vertiv is creating hybrid cooling systems that blend direct-to-chip liquid cooling with air-based methods. These systems adapt to shifting workloads, lower energy usage, and preserve operational reliability. “Our coolant distribution units enable direct-to-chip liquid cooling while assuring reliability and serviceability in high-density setups,” Churchill explained.

Power provisioning is also growing more intricate. AI workloads change rapidly, so infrastructure must respond in real time. Vertiv is advancing its rack power distribution units and busway systems to accommodate higher voltages and enhance load management. Intelligent monitoring enables operators to manage electrical loads more effectively, minimise wasted capacity, and extend uptime – an important factor in parts of Southeast Asia with less stable power grids.

Redesigning data centres for AI workloads

The emergence of liquid-cooled GPU pods and 1 MW racks, similar to those planned by AMD and hyperscalers like Microsoft, Google, and Meta, indicates a broader architectural evolution. Rather than retrofitting older sites, new data centres are being built specifically to back AI operations.

“The future of data-centre architecture is hybrid, and these systems require facilities structured around liquid flow,” Churchill stated. This entails redesigned floor plans, advanced coolant distribution networks, and more sophisticated power architectures.

Next-generation facilities will unify cooling, power, and monitoring from chip level all the way to the grid. In Asia Pacific, where hyperscale campuses are growing quickly, this integrated design is vital to meet both performance expectations and sustainability targets.

Shifting from incremental upgrades to full-scale AI factory data centres

By 2030, Asia Pacific is forecast to surpass the US in data centre capacity, reaching almost 24 GW of commissioned power. To cope with this expansion, businesses are moving from ad hoc upgrades to comprehensive AI factory data centres.

Churchill stressed that this shift should be phased. The initial step is integrated planning, combining power, cooling, and IT management instead of treating them as siloed systems. This streamlines deployment and creates a solid foundation for scaling.

The second step is to implement modular and prefabricated systems. These let organisations increase capacity incrementally without major interruptions. “Companies can install factory-validated modules alongside current infrastructure, progressively shifting workloads to AI-ready capacity without extensive overhauls,” he said.

Lastly, sustainability must be embedded throughout each phase. This involves deploying lithium-ion energy storage, grid-interactive UPS systems, and higher-voltage distribution to boost efficiency and resilience.

DC power is gaining renewed importance for AI data centres

Vertiv recently launched the PowerDirect Rack, a DC power shelf tailored for AI and high-performance computing. Adopting DC power can minimise energy losses by cutting conversion stages between the grid and servers. It also works well with renewable energy and battery storage systems, which are increasingly prevalent across Asia Pacific.

This is particularly helpful in energy-limited markets such as Vietnam and the Philippines. In these areas, adaptable power solutions are key to maintaining smooth facility operations. As Churchill pointed out, DC power is “not just about efficiency – it’s a strategy for enabling sustainable scalability.”

Sustainability is emerging as a core focus

With AI increasing energy demand, data-centre operators are confronting tougher regulations and grid limitations. This is especially evident in Southeast Asia, where power reliability and electricity prices differ widely.

Vertiv is collaborating with operators to incorporate alternative energy sources such as lithium-ion batteries, hybrid power systems, and microgrids. These can lessen grid dependence and strengthen resilience. Interest is also rising in solar-backed UPS systems and advanced energy storage technologies, which assist in load balancing and cost management.

Cooling efficiency is another critical area. Hybrid liquid cooling systems can lower both energy and water usage compared to older techniques. “Our goal is to deliver infrastructure that meets performance needs while supporting ESG objectives,” Churchill commented. “We are working closely with partners to ensure that AI-fuelled growth in the region remains responsible, sustainable, and in sync with long-term digital and environmental goals.”

Modular solutions facilitate swift growth

Many developing economies in Asia Pacific grapple with issues like limited space, unreliable power, and a shortage of skilled technicians. In these environments, modular and prefabricated data-centre systems offer a viable path forward.

Prefabricated modules can slash deployment times by up to 50%, while enhancing energy efficiency and scalability. They allow operators to grow step-by-step, adding capacity as demand rises without heavy initial capital outlay. This flexibility is especially useful for AI workloads, which can scale rapidly and unpredictably.

By pairing compact design with energy-efficient operation, modular systems let operators build AI-ready capacity more quickly and with reduced risk – a key benefit as digital economies in the area continue to expand.

Gearing up for a challenging future

The AI boom is redefining how data centres are constructed and run throughout Asia Pacific. As workloads grow more demanding and sustainability requirements tighten, businesses can no longer depend on obsolete infrastructure. The transition toward AI factory data centres, supported by advanced cooling, DC power, and modular designs, underscores a fundamental shift in how the region is bracing for the next wave of computing.

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