Partner Frankfurt
"Our article series has explored the legal and regulatory frameworks shaping this transformation across 11 jurisdictions."
As digital infrastructure becomes increasingly central to global economic growth, data centres are evolving into strategic assets, not just for tech companies, but for governments, investors and regulators. Our article series has explored the legal and regulatory frameworks shaping this transformation across 11 jurisdictions. This wrap-up distils the series’ key insights, highlighting global trends, jurisdictional nuances and emerging best practices.
Data Centres as Strategic Infrastructure
Across all jurisdictions, data centres are being recognised as critical national infrastructure. Governments are:
- designating them as foundational digital assets (e.g. Singapore’s Cybersecurity Act 2018, amended in 2024);
- embedding them in national digital economy strategies (e.g. Malaysia’s MyDigital Blueprint); and
- reforming planning and permitting regimes to accelerate development (e.g. UK and Greece).
This shift reflects a broader understanding that data centres underpin economic resilience, digital sovereignty and technological innovation.
Sustainability and Energy Efficiency
Energy consumption remains a defining challenge. Jurisdictions are responding with:
- mandatory renewable energy integration (Germany’s EnEfG law);
- efficiency benchmarks and green certifications (Singapore’s Tropical Data Centre Standard and Green Mark for Data Centres; Malaysia’s GBI and LEED); and
- government-backed incentives for carbon reduction and energy-efficient equipment.
Singapore’s Green Data Centre Roadmap, launched in June 2024, aims to add 300 MW of new capacity while improving energy performance. Malaysia’s National Energy Transition Roadmap (“NETR”) sets a path towards net-zero emissions by 2050. Notably, Singapore’s Sustainable Tropical Data Centre Testbed, led by NUS and NTU, is the world’s first research programme focussed on cooling technology for tropical climates.
Investment Acceleration and Market Maturity
The sector is attracting record levels of investment from hyperscalers, infrastructure funds and sovereign platforms. Highlights include:
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"The sector is attracting record levels of investment from hyperscalers, infrastructure funds and sovereign platforms."
- Malaysia: US$2.2bn from Microsoft and US$6.2bn from AWS announced in 2024;
- Australia: market expected to double by 2028; and
- Spain and Italy: strategic positioning for submarine cable connectivity and decentralised cloud.
Malaysia added 1.3 GW of new supply in H1 2024, reaching 11.6 GW total capacity – making it the fastest-growing data centre market in Asia Pacific.
Regulatory Innovation and Legal Complexity
While some jurisdictions have enacted bespoke legislation, others are adapting existing frameworks. Key developments include:
- cybersecurity and data protection laws (Singapore’s PDPA 2012 and Cybersecurity Act 2018; Malaysia’s PDPA 2010, CMA 1998, and Computer Crimes Act 1995);
- planning and permitting reforms (UK, Greece); and
- energy and real estate integration (Germany, Spain).
Operators must navigate multi-layered legal landscapes, often involving real estate, energy, technology and environmental law.
Jurisdictional Highlights
- Germany: Frankfurt remains a key hub, with legal mandates like the EnEfG law driving renewable energy use and integration of PPAs and battery storage;
- Italy: Italy’s strategic role in submarine cable connectivity and decentralised cloud infrastructure is supported by a maturing regulatory framework;
- Spain: Spain combines strong renewable energy resources with geographic advantage, attracting hyperscaler investment under supportive environmental laws;
- Australia: with demand set to double by 2028, Australia is embracing green financing and innovation, supported by sustainability-focussed regulation;
- Indonesia: Indonesia is modernising its legal framework to support digital infrastructure, with rising demand and evolving data protection laws;
- Thailand: Thailand’s proactive government support and green energy policies are fostering sustainable data centre development amid rapid internet growth;
- Vietnam: government incentives and digital economy legislation are propelling Vietnam’s data centre growth, with a focus on connectivity and efficiency;
- UK: planning reform and ESG-driven regulation are accelerating data centre deployment, particularly in response to AI and cloud demand;
- Greece: legal reforms and streamlined permitting are boosting investor confidence, positioning Greece as an emerging regional data centre destination;
- Singapore: Singapore leads in regulatory innovation and sustainability, with the Green Data Centre Roadmap, Tropical Data Centre Standard and robust cybersecurity laws; and
- Malaysia: Malaysia is the fastest-growing APAC market, with 11.6 GW capacity and major investments from AWS and Microsoft. Incentives and legal clarity underpin its rise as a regional hub.
"The data centre sector is entering a new phase, one defined by resilience, sustainability and strategic alignment with national and global priorities."
Looking Ahead
The data centre sector is entering a new phase, one defined by resilience, sustainability and strategic alignment with national and global priorities. As jurisdictions race to attract investment and set regulatory benchmarks, the legal landscape is becoming more complex and more consequential.
Key challenges – energy intensity, land scarcity, climate adaptation and talent shortages are prompting innovation in cooling technology, green financing and cross-border collaboration. Singapore’s pioneering standards for tropical climates and Malaysia’s aggressive investment incentives show how governments are turning constraints into competitive advantage.
For investors, developers and operators, success in the data centre sector will hinge on the ability to navigate increasingly complex legal frameworks, meet evolving ESG requirements and stay ahead of regulatory change. With deep cross-border infrastructure expertise, WFW is well-positioned to help clients manage risk, unlock value and deliver future-proof digital infrastructure.
Click here to view the full article series.
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Partner Frankfurt
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Managing Associate Frankfurt
