Rising electricity demand from over 1,150 planned data center projects is prompting governments in the Asia-Pacific to introduce tougher grid access rules, Wood Mackenzie strategists said in a Thursday note.
To secure power connections, developers increasingly need to add battery systems, reduce demand during grid stress and help support network reliability, the consultancy said.
For some projects, finding enough electricity is becoming harder than securing land, permits or financing, according to the note.
As governments tighten connection rules, large power users are taking on more responsibility for keeping electricity systems reliable and stable.
Japan is considering allowing some facilities to connect before grid upgrades are completed if operators can cut power use when the network comes under pressure.
To reduce strain on major cities, Japan, India and South Korea are encouraging developers to build data centers in regions with stronger power supplies.
Australia has proposed requiring data centers larger than 30 megawatts to remain connected during voltage and frequency disturbances and to restore demand in a controlled manner afterward.
Singapore, Malaysia and South Korea are using stricter approval requirements tied to energy efficiency, renewable power sourcing and potential grid impacts.
According to Wood Mackenzie, battery storage, renewable energy purchases and curtailment measures are becoming regular costs for new data center developments.
When choosing new locations, developers increasingly need to consider grid capacity and local power rules alongside customer demand and land availability, the consultancy said.