Power is Redefining Digital Infrastructure Delivery in APAC

   

Asia Pacific (APAC) is at the centre of one of the fastest digital infrastructure builds outs, creating significant pressure on power availability, project timelines and capital deployment. AI capacity and cloud demand are driving data centre expansion at a pace that is outrunning the energy infrastructure needed to deliver sufficient power supply. With power availability now a defining challenge for digital infrastructure and data centre project delivery, the question facing developers, operators and investors is how to address risk early enough in the project lifecycle to protect all assets involved.

In a panel session at Aon’s Asia Construction Conference held in Ho Chi Minh City on 15 May 2026, senior experts from Aon’s and Chubb Insurance’s Construction and Power teams discussed the nature of this sector wide challenge and the strategies and solutions available to support better outcomes for digital infrastructure projects and platforms.

   

A Regional Build Out Leading the Digital Infrastructure Industry

According to Tariq Taherbhai, Chief Commercial Officer, Construction and Infrastructure, Aon, APAC accounts for roughly 30% of total global data centre capacity and is growing at more than 20% annually. “Global installed capacity is expected to rise from around 60GW today to as much as 220GW by 2030,” he says. “This is being driven by AI and hyperscale computing requirements that continue to grow at a remarkable pace.”

"None of us foresaw the scale and speed of this digital infrastructure build out," agrees James MacNeal, Global Industry Speciality Leader, Construction and Infrastructure at Aon. "This uncertainty makes it even more important that risk is considered at the earliest stages of digital infrastructure and data centre project development, when there are more options available and a balance can be struck across cost and risks to realise greater value overall.”

APAC development hotspots include Malaysia and Indonesia, with grid commitments in Malaysia alone pointing towards 13GW demand from data centres by 2030, equivalent to two thirds of the country's current peak capacity. "A lot of power developers in the region are looking to diversify into data centres," says Benjamin Ng, Power Leader for Asia at Aon, "You are seeing digital infrastructure projects pop up in Malaysia, in Batam, across different parts of the region.”

Power is the New Critical Path for Digital Infrastructure Capacity

These rising power requirements are fast becoming one of the biggest constraints on digital infrastructure and data centre development and capacity. “Hyperscale campuses now routinely demand 500MW or more for a single site, placing significant strain on national grid infrastructure,” says MacNeal. "I don't think there's a country in the world that can put their hand up and say we can provide constant, reliable and clean power at that volume."

Grid expansion operates on a different timeline from digital infrastructure construction. A large data centre facility can be designed and built in two to three years while developing the power infrastructure may take considerably longer. “This mismatch is prompting developers to explore behind the meter power solutions and private power islands outside the traditional grid,” says MacNeal. “Aon recently supported a 2.5GW power city in North Texas, developed by private equity and energy partners solely to supply a cluster of data centres and we’re going to see more and more of these integrated digital infrastructure and power cities.”

Adding to the challenge is fierce competition for power generation equipment, with lead times for critical components now extending well beyond twelve months. "Reliability of power is very important for data centres because of their service level agreements with customers," says Ng. "The current challenge for developers is getting close to grid lines and finding the best land bank across the region." For many developers, operators and investors, captive or co located power generation is becoming vital for meeting deadlines for commissioning digital infrastructure assets.

 

Project Dependency Amplifies Digital Infrastructure Risk

When data centre and power assets are developed on the same site the risks can combine in ways that are not always considered in the design and planning stages. A delay in bringing the power plant online means the data centre cannot operate, yet the two projects are typically treated separately in risk frameworks, insurance policies and for contract and stakeholder responsibilities — even though together they form a single digital infrastructure system.

The testing and commissioning phase is where this risk exposure can be particularly sharp. Asset values are high, and tolerance for failure is limited. A misalignment between the two assets can result in SLA breaches and contractual penalties that standard policies may not address. "During testing and commissioning, you need power plant commissioning to be done in tandem so that it does not affect the schedule customers are relying on," says Ng. "That interfacing risk is something developers need to address and manage early in the digital infrastructure lifecycle."

A misalignment between the two assets can result in SLA breaches and contractual penalties that standard policies may not address. “AI cluster downtime costs can run up to $9,000 per minute in a 99.999% uptime environment,” says Titus Samuel, Head of Construction & Power Generation for Chubb in Asia. “Many insurers are not yet in a position to factor in this level of potential Delayed Start Up (DSU) exposure in the event of damage during construction.”

This issue highlights how risk accumulates across each phase of a data centre’s and power asset’s lifecycle. Transition between these phases can put projects under pressure as phased construction, commissioning and operations can all be occurring simultaneously across a single site. When insurance arrangements are structured separately across each asset and phase, gaps in coverage heighten risk exposure at precisely the moments when delays have the largest financial consequences.

 

Complex Digital Infrastructure Risk Demands a Robust Framework Approach

Treating co located power and data centre assets as two separate insurance placements is an example of how these gaps in cover can become critical during digital infrastructure project transitions. "The complex demands of modern digital infrastructure demand a more holistic approach," says MacNeal. "One doesn't work without the other and an integrated insurance approach that spans both assets is increasingly required."

Aon's Data Centre Lifecycle Insurance Program brings construction and operational cover together within a single framework. It aligns seven coordinated coverages to the phases of large-scale digital infrastructure and data centre delivery. The program supports concurrent commissioning of power and data centre assets, maintains operational cover throughout construction and can support portfolios spanning multiple APAC jurisdictions. This helps developers, operators and investors manage financial risk from construction into early operation, reducing the potential for delays and disputes across the project lifecycle.

 

Early Engagement on Power Access is Essential for Digital Infrastructure

For digital infrastructure and data centre projects, power access, insurability and lender requirements are critical in making sound capital and design decisions. Giving these factors proper consideration at site selection — when there is far greater scope to optimise location and design — determines whether a project is bankable, insurable at scale and resilient throughout the lifecycle.

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