Five Questions ESG Leaders Should Ask Their Data Center Providers

Naz Ghouse, Director of ESG at Digital Edge DC, shares key questions to help ensure your data center partners align with your sustainability commitments.

ESG reporting is no longer optional. If you’re in cloud, AI, telecom, finance, tech or manufacturing, you’re already under pressure to disclose how your business impacts the planet, your people and your partners. That means publishing hard numbers – factual, verified and precise – on everything from energy and water use to labor practices and supply chain risk. 

But there’s a catch: much of that data comes from your infrastructure. Without transparent, auditable ESG metrics from your data center partner, your ESG reporting won’t be complete or reliable. And yet, few providers in Asia Pacific have visibility into their own ESG metrics, let alone the ability to align with global standards, like EcoVadis, LEED and SBTi, or satisfy the criteria for ICMA-compliant green finance networks. 

You need to know that your infrastructure partners are meeting the same high standards you are. Here are five questions to help you assess whether your data center provider is supporting your ESG goals or quietly hindering them.

1. Do you publish annual ESG impact reporting? 

A provider that publishes auditable performance data on an annual basis demonstrates a commitment to transparency and progress, especially when tracking performance against stated targets. When that reporting aligns with global standards – like those under the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB) – your teams have reliable data for your own ESG disclosures. 

Look for providers that acknowledge industry challenges while maintaining accountability. Access to high-quality renewables, credible energy instruments and transparent equipment carbon footprint data often lags behind demand in developing markets. However, transparency remains achievable. Expect your partners to move beyond aspirational statements by setting data-driven ESG targets, such as emissions reduction goals aligned with the Science Based Targets initiative (SBTi) and evidence-based risk assessment under the Task Force on Climate-related Financial Disclosures (TCFD) and Taskforce on Nature-related Financial Disclosures (TNFD) frameworks.

2. Are ESG metrics standardized across all markets?

For any ESG reporting to be meaningful, the underlying data must be consistent. Ask your data center partners how they define, track and report ESG metrics across regions – and whether they apply the same standards across every facility, not just the flagship ones. This matters even more in Asia Pacific, where data centers increasingly face multiple challenges through proximity to water-stressed regions, dense urban environments or sensitive ecosystems. Without standardized measurement, it’s impossible to compare performance or assess portfolio-level risks.

Look for consistency across key performance indicators, such as:

• Greenhouse gas emissions (Scope 1, 2 and 3)
• Power and water usage effectiveness (PUE and WUE)
• Renewable energy sourcing
• Operational waste diversion and reuse and recycling of construction materials
• Health and safety (TRIR and SIF)
• Leadership diversity, employee engagement and other DEI metrics
• Volunteer hours and community and stakeholder engagement initiatives
• Ethics training completion rates
• ISO certifications for information security, safety, environment, energy and quality
• Independent ESG ratings, such as EcoVadis 

Standardization isn’t just good governance — it gives you confidence in the data you depend on.

3. Have you secured green financing with third-party validation? 

A data center that issues green loans or bonds under a recognized framework is showing real ESG commitment. Look for alignment with ICMA Green Bond Principles and the Green Loan Principles issued by the Asia Pacific Loan Market Association (APLMA) — and check whether the framework has been supported by an independent Second Party Opinion or external assurance. These mechanisms typically require strict eligibility criteria, like low PUE, sustainable water management and certified green buildings (meeting LEED or similar standards). They also call for transparent tracking and annual impact disclosures – which support your own ESG reporting.

4. Do you have a supply chain code of conduct in place? 

Your data center provider’s contractors, vendors and construction partners can introduce serious compliance and reputational risks – unless they’re held to clear, enforceable standards. A robust Business Partner Code of Conduct should go beyond policy language and include practical safeguards: thorough onboarding due diligence, regular performance monitoring and annual refresher training to reinforce expectations around environment, ethics, labor rights and safety. This kind of ongoing engagement helps reduce risk and build trust across the supply chain. 

5. Who is accountable for ESG – and how is it governed? 

ESG can’t be a side project. Ask your provider about internal accountability: 

• Is there a senior ESG Lead with clear authority?
• Does an ESG Steering Committee exist – and how senior are its members? 
• Are sustainability goals tracked, reported and linked to employee incentives and training? 

When ESG is embedded in corporate governance – not just delegated to a function – performance becomes consistent, credible and proactive.

Conclusion

Your ESG outcomes don’t exist in isolation. They depend on your partners. The right data center partner will help you meet evolving reporting standards, avoid compliance risks and deliver meaningful impact to your long-term sustainability goals.

As a company on a mission to build high-performance digital infrastructure across Asia Pacific, Digital Edge has made environmental stewardship and social responsibility integral to all of our operations. Our latest ESG Report outlines measurable progress in 2024: 

• Earning a global top 1% EcoVadis Platinum rating
• Securing LEED Silver and achieving a full-load design PUE of 1.25 at Seoul SEL2
• Completing a Moody’s-rated green finance framework
• Maintaining 100% uptime across all operational data centers
• Achieving an above average 73% employee engagement rate

We’re now focused on securing comprehensive ESG-related certifications for each operational data center, while also further enhancing our responsible supply chain practices and community engagement programs. Our certification framework targets eight key standards, from ISO 14001 for environmental management to ISO 45001 for health and safety and PCI DSS and SOC 2 for data security.

For our customers, this means greater transparency, smoother audit readiness and a partner that aligns not just with your ambition – but with your execution. If you’re interested in knowing more about our services and facilities, please reach out to us at sales@digitaledgedc.com