Data Center Boom Sets Stage for Southeast Asia's LNG Demand Surge
The Southeast Asian region is set to see a surge in liquefied natural gas (LNG) demand due to the growing number of data centers being built, particularly in countries such as Singapore, Malaysia, Indonesia, and Thailand. According to Wood Mackenzie, these data centers will require reliable 24/7 power supply, which can be provided by combined-cycle gas turbines (CCGT).
The demand for LNG is expected to increase by 16% through 2035, driven by the construction of new data centers, with a pipeline capacity that could more than triple to 9.4 gigawatts by then. This will lead to a significant increase in power demand from hyperscalers, jumping from 17 terawatt-hours (TWh) currently to 57 TWh.
Malaysia is building new regasification terminals to import LNG and meet growing power demand, while Thailand's reliance on LNG could reach 50% by 2035 as pipeline gas imports decline. In contrast, India's data center boom will not lead to a significant increase in LNG demand due to the country's focus on renewable energy sources.