Southeast Asian Data Centers Fuel LNG Demand Boom

The AI boom in Southeast Asia is set to significantly boost demand for liquefied natural gas (LNG) in the region, according to energy consultancy Wood Mackenzie. The company forecasts that LNG demand growth in Southeast Asia will rise by 16% through 2035 due to the expansion of data centers and hyperscalers.

Data centers are a major driver of power demand, and combined-cycle gas turbines (CCGT) remain the most reliable source of power for these facilities. In Southeast Asia, countries such as Singapore, Malaysia, Indonesia, and Thailand will need additional LNG imports to meet their growing energy needs.

Wood Mackenzie analysts note that data center investment is growing quickly in Malaysia and Thailand, just as domestic gas output peaks and declines. This trend presents opportunities for LNG sellers and traders over the next decade. By 2035, Southeast Asia's data center project pipeline could more than triple to 9.4 GW.