Southeast Asian Data Center Boom Fuels LNG Demand

The rapid growth of hyperscale data centers in Asia is creating divergent outcomes for liquefied natural gas (LNG) demand, particularly in Southeast Asia. According to a new report from Wood Mackenzie, Southeast Asia's data center pipeline is expected to triple from 2.8 gigawatts (GW) today to 9.4 GW by 2035.

This growth in electricity demand from data centers will be met primarily through combined-cycle gas turbines (CCGT), as grid-scale battery storage remains commercially immature across the region until at least the mid-2030s.

Wood Mackenzie notes that large, creditworthy off-takers like data centers provide a stable power demand regardless of economic cycles, making them attractive for new LNG supply in Southeast Asia.

The report highlights Singapore as a key driver of LNG demand, with its grid running on approximately 95 percent gas today. As piped imports from Malaysia and Indonesia are expected to cease by the early 2030s, Singapore's reliance on LNG is set to reach 100 percent.