Dublin, Aug. 25, 2025 (GLOBE NEWSWIRE) -- The "Asia-Pacific HVO for Data Center Backup Market: Focus on Data Center Type, Feedstock Type, and Country - Analysis and Forecast, 2025-2034" report has been added to ResearchAndMarkets.com's offering.
The Asia-Pacific HVO for data center backup market was valued at $112.1 thousand in 2024 and is projected to grow at a CAGR of 10.17%, reaching $359.5 thousand by 2034.
The market for hydrotreated vegetable oil (HVO) as a data-center backup fuel is expanding quickly in Asia as operators look for drop-in, low-carbon diesel substitutes. HVO reduces lifecycle CO2 emissions by up to 90% while providing dependable backup power in the face of increasing uptime needs brought on by digital transformation. Fuel stability, storage life, and genset performance are being improved by advances in HVO production and its smooth integration with on-site solar, battery storage, and microgrid systems.
With the help of national biofuel laws, tax breaks, and decarbonisation requirements, international providers like Neste, TotalEnergies, Repsol, and Shell are expanding their operations in Singapore, Japan, Australia, and India. APAC data centre operators are increasingly turning to HVO for an affordable, scalable, and emissions-aligned backup solution as regulatory pressure increases and corporate sustainability standards tighten, driving the region's transition to a greener digital infrastructure. 
The APAC HVO for data-center backup market is expected to grow rapidly because to the combination of corporate sustainability pledges, regulatory requirements, and changing energy-security concerns. In addition to meeting urgent continuity needs, this change supports longer-term goals of building a more resilient and environmentally friendly digital economy throughout the Asia-Pacific area.
APAC HVO for Data Center Backup Market Trends, Drivers and Challenges
Market Trends
- Shift to Low-Carbon Backup Solutions: Major data center operators in APAC are trialing and adopting hydrotreated vegetable oil (HVO) as a cleaner alternative to conventional diesel generators, aligning with corporate net-zero targets.
- Integration with Hybrid Power Architectures: HVO systems are increasingly being paired with battery energy storage and on-site renewables to optimize overall backup capacity and reduce genset runtime.
- Strategic Partnerships & Pilot Projects: Technology providers, fuel suppliers, and hyperscale data center operators are collaborating on pilot deployments - particularly in Singapore, Japan, and Australia - to validate performance, emissions, and cost metrics.
- Government & Regulatory Encouragement: Several APAC governments (e.g., Japan's Green Growth Strategy, India's National Biofuel Policy) are offering incentives or streamlined approvals for biofuel-powered backup generation.
Market Drivers
- Emissions Reduction Mandates: Tightening regional targets for greenhouse gas and particulate emissions are pushing data centers to seek compliant backup fuels.
- Corporate Sustainability Commitments: With major global cloud providers pledging 24/7 carbon-free operations by 2030, HVO offers an immediate drop-in route to cleaner backup power.
- Grid Reliability Concerns: Frequent grid outages or voltage fluctuations in developing APAC markets (e.g., Southeast Asia, India) drive demand for robust, long-duration backup solutions that maintain business continuity.
- Lifecycle Cost Advantages: Although HVO carries a slight price premium over diesel, lower maintenance requirements (due to its cleaner combustion profile) and potential carbon credits can offset total cost of ownership.
Market Challenges
- Feedstock Supply Constraints: Scaling HVO production sustainably - without impacting food crops or land use - remains a bottleneck. Feedstock competition with other industries can drive up prices.
- Fuel Infrastructure Upgrades: Existing diesel storage and handling systems may require modifications (e.g., material compatibility checks, filtration enhancements) before HVO can be used safely at scale.
- Price Volatility & Premium: HVO currently trades at a 10-30% premium over ultra-low-sulfur diesel, making budget approvals more complex for cost-focused operators.
- Regulatory & Certification Hurdles: Lack of unified APAC standards for biofuel blending and generator certification can slow roll-out across multiple countries
Competitive Strategy:
Key players in the APAC HVO for data center backup market have been analyzed and profiled in the study of HVO for data center backup products. Moreover, a detailed competitive benchmarking of the players operating in the APACHVO for data center backup market has been done to help the reader understand how players stack against each other, presenting a clear market landscape.
Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 70 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value (USD) in 2025 | $150.4 Thousand |
| Forecasted Market Value (USD) by 2034 | $359.5 Thousand |
| Compound Annual Growth Rate | 10.1% |
| Regions Covered | Asia Pacific |
Key Topics Covered:
1 Markets
1.1 Trends: Current and Future Impact Assessment
1.2 HVO Supply Chain Overview
1.3 Research and Development Review
1.4 Regulatory Landscape and Industry Initiatives
1.5 Stakeholder Analysis
1.6 Market Dynamics Overview
1.6.1 Market Drivers
1.6.1.1 Carbon Emission Reduction Goals
1.6.1.2 Growth of Power Demand by Data Centers
1.6.2 Market Restraints
1.6.2.1 Infrastructure and Compatibility Costs
1.6.2.2 Supply Chain Limitations
1.6.3 Market Opportunities
1.6.3.1 Regulatory Support and Incentives
1.6.3.2 Partnerships and Collaborations with Biofuel Producers
1.7 Data Center Power Backup Market Overview
1.8 Market Adoption Scenario
1.8.1 Adoption of New Generators
1.8.2 Conversion of Existing Systems
1.9 Data Centers Adopting HVO for Backup
1.9.1 STT GDC Pte Ltd
2 Regions
2.1 Regional Summary
2.2 Asia-Pacific
2.2.1 Regional Overview
2.2.2 Driving Factors for Market Growth
2.2.3 Factors Challenging the Market
2.2.4 Application
2.2.5 Product
2.2.6 China
2.2.7 Japan
2.2.8 Singapore
2.2.9 South Korea
2.2.10 Rest-of-Asia-Pacific
3 Markets - Competitive Benchmarking & Company Profiles
3.1 Next Frontiers
3.2 Geographic Assessment
For more information about this report visit https://www.researchandmarkets.com/r/20he6u
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