Articles

Data centres are becoming a major infrastructure asset class, and financial institutions are increasing exposure through lending, investing and underwriting. The growth of cloud computing and AI infrastructure presents a financing opportunity. This opportunity is coupled with resilience related risks such as climate exposure, energy constraints and operational disruption that traditional underwriting and valuation frameworks may not capture. For banks, insurers, private credit funds and institutional investors, managing this exposure becomes a matter of importance to protect cash flows, asset value and insurability of the investment. Annual investment in data centres is projected to double from around US $500 billion in 2024 to more than US $1 trillion as early as 2027. A major share of the expansion is moving towards the Asia Pacific, with overall capacity (excluding China), projected to increase from around 9GW, to more than 28GW by 2030.

India stands at a defining moment in its industrial transition. As the country pursues its ambition of becoming a global manufacturing powerhouse while advancing towards its net-zero commitments, industrial decarbonisation has become both an economic imperative and a strategic opportunity.

Small Island Developing States (SIDS) stand at the frontline of the climate crisis. Rising sea levels, increasingly frequent tropical storms, ocean warming and changing rainfall patterns are reshaping livelihoods, disrupting food production and placing growing pressure on public health systems. These impacts are not isolated. Climate change simultaneously affects agricultural productivity, fisheries, nutrition, water security and disease burdens, creating an interconnected food–climate–health nexus that has become central to the resilience of island economies.

The article examines how IFRS S1 and S2 are transforming sustainability reporting from a voluntary transparency exercise into a central pillar of global financial architecture. It analyses regulatory convergence, emerging market transitions, and alignment with nature-related frameworks such as TNFD.