Key Environmental Regulations Impacting Data Centers Worldwide
Every refresh of our Market Connectivity Score uncovers new insights into interconnectivity. In Q2 2025, Hong Kong and Manila overtook Kuala Lumpur as the fastest-growing cities. The Market Connectivity Score evaluates cities based on 45 data points, highlighting the impact of regulations on interconnectivity.
Government efforts to attract data center investments are met with the challenge of enforcing existing digital infrastructure standards. Data centers present unique regulatory challenges due to their economic and environmental footprints.
In a review of environmental regulations affecting data centers, we explore how leading markets are implementing changes.
Singapore: Pioneering Sustainability
Singapore ranks fourth with a score of 55.0 in the H2 2025 Market Connectivity Score. The Green Data Centre Standard by IMDA sets sustainability benchmarks, focusing on energy efficiency, water use, and construction practices.
Tokyo: Pursuing Carbon Neutrality
Scoring 60.5, Tokyo aims for carbon neutrality by 2040. Reporting standards introduced under the Energy Conservation Act drive data centers towards a PUE target of 1.4.
EU (Amsterdam, Frankfurt, Paris): Promoting Transparency
Frankfurt leads with a score of 61.6. The EC mandates data reporting requirements, including energy consumption, water usage, and green energy sources, to enhance sustainability.
Local authorities in Northern Virginia and Dublin are tightening regulations on data center development to address energy infrastructure concerns.
