Southeast Asia's AI Boom Drives Surge in LNG Demand
The rapid growth of data centers for artificial intelligence systems in Southeast Asia could lead to a significant increase in demand for liquefied natural gas (LNG) in the region. According to analysts at Wood Mackenzie, LNG demand in Southeast Asia is expected to grow by 16% annually through 2035 due to the expansion of AI-related data centers.
The consulting firm estimates that the data center project pipeline in Southeast Asia could more than triple from its current 2.8 GW to 9.4 GW by 2035, resulting in a substantial increase in electricity consumption. The analysts expect major cloud-computing operators' electricity demand to rise from 17 TWh to 57 TWh during the same period.
Wood Mackenzie considers combined-cycle gas turbines as one of the reliable options for round-the-clock power supply to data centers due to limitations in renewable generation systems and industrial energy storage in the region. Fadlullah Omarali, Wood Mackenzie's chief analyst, noted that data centers are large, creditworthy consumers with stable electricity demand that does not depend on economic cycles, changing the risk assessment for supplying new LNG volumes to Southeast Asian countries.