State of Interconnectivity and Data Center Regulations: Market Insights
Each update of our Market Connectivity Score reveals intriguing narratives about the level of interconnectivity worldwide. In the recent Q2 2025 update, Hong Kong and Manila overtook Kuala Lumpur as the fastest-growing cities. Discover more in the video below.
The Market Connectivity Score assesses the connectivity of cities by analyzing 45 data points across 3,000 cities globally, with a keen focus on how regulations influence interconnectedness.
For comprehensive insights into regulatory impacts, Assembly Research experts delve into the connectivity effects of regulations and governance on top-ranking cities repeatedly seen in our listings.
Government efforts to attract data center investments have spurred regulators to ensure compliance with digital infrastructure standards. However, regulating data centers presents distinct challenges considering their economic and environmental implications.
Key environmental regulatory shifts affecting data centers in leading Market Connectivity Score markets are highlighted:
Singapore: Sustainable Innovations
Singapore achieved a score of 55.0 in the H2 2025 Market Connectivity Score, ranking fourth overall. Pioneering the Green Data Centre Standard over a decade ago, IMDA continues to enhance energy efficiency and sustainability in data centers through the Green Mark standards.
Tokyo: Carbon Neutrality Goals
Scoring 60.5 in the H2 2025 rankings, Tokyo aims for carbon neutrality by 2040 by improving energy efficiency, as outlined in the Energy Conservation Act revisions and the Green Growth Strategy.
EU (Amsterdam, Frankfurt, Paris): Transparent Operations
Frankfurt holds the top spot with a score of 61.6. The EC’s Energy Efficiency Directive requires data center operators to report on energy consumption, water use, and green energy sources to foster competition and drive efficiency.
Local authorities in regions like Northern Virginia and Dublin have tightened regulations on data center operations amidst sustainability concerns, indicating shifts towards stricter local regulation.
