AI and Data Center Growth Expected to Boost LNG Demand in Southeast Asia
The rapid expansion of artificial intelligence (AI) and data centers across Southeast Asia is expected to significantly increase the region’s liquefied natural gas (LNG) demand. Analysts at Wood Mackenzie note that combined-cycle gas turbines remain a reliable power source for hyperscalers due to underdeveloped renewable energy infrastructure, leading to higher LNG import needs in countries like Singapore, Malaysia, Indonesia, and Thailand through 2035. The data center project pipeline is projected to grow from 2.8 gigawatts today to over 9.4 GW by 2035, with power demand rising from 17 terawatt-hours (TWh) now to 57 TWh in the same period. This trend could raise annual LNG demand growth in Southeast Asia by 16% through 2035. Grid-scale battery storage is still immature regionally, making gas turbines a preferred solution for ensuring stable power supply. Countries like Singapore and Thailand are expected to rely increasingly on LNG as pipeline imports decline.
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Topics: AI Data Centers Natural Gas (LNG) Southeast Asia Energy Market