Accelerating Decarbonization in Data Center Infrastructure in Smart Cities With Digitalization: Insights From Shenzhen (China) and Cyberjaya (Malaysia) for Promoting Net-Zero Emissions

Abstract

Digitalization is a key driver of decarbonization in data centers, as demonstrated by the strategic initiatives in Shenzhen, China, and Cyberjaya, Malaysia. This work presents the key findings and insights from a comparative analysis of their digitalization strategies and impact on data center sustainability. China’s digital economy, which accounted for 39.8% of its GDP by 2021, reached CNY 45.5 trillion by 2021, and its data center market reached revenues of USD 95.74 billion by 2024, with a CAGR of 8.97%. The country aims to increase non-fossil energy consumption to 20% by 2025 and 25% by 2030, aligning with its goal of carbon neutrality by 2060. Malaysia, on the other hand, focuses on renewable energy integration, aiming for 31% renewable energy in its installed capacity by 2025 However, the opportunities for energy savings and reduced carbon emissions are significant. The experiences of China and Malaysia highlight the importance of strategic planning and policy support. Both countries face significant structural challenges; while the initial financial investment in digital infrastructure is substantial, the more critical hurdle is the gap in intellectual capital. To achieve sustainable operations, data centers must serve as more than just hardware hubs; they must become repositories of human intellectual capital while encompassing technical, behavioral, and managerial competencies that allow for the navigation of complex technological and sustainability transitions. Support and investment in digital infrastructure to leverage digitalization for the purpose of decarbonization is crucial. China and Malaysia are well-positioned to lead in sustainable data center operations, setting a precedent for global sustainability initiatives.