Southeast Asia's Data Center Boom Fuels LNG Demand Surge

The AI boom in Southeast Asia is driving up demand for liquefied natural gas (LNG) as data centers sprout up across the region, particularly in Singapore, Malaysia, Indonesia, and Thailand. According to Wood Mackenzie analysts, this trend will increase LNG demand growth by 16% through 2035.

Data centers are being built at an unprecedented rate, with the project pipeline expected to more than triple to 9.4 gigawatts (GW) by 2035, up from 2.8 GW today. This surge in power demand will lead to a significant increase in LNG imports through 2035.

The reliance on gas for power generation is already high in Southeast Asia, with Singapore's grid being 95% dependent on gas even now. In the early 2030s, pipeline gas imports from Indonesia and Malaysia are expected to cease, further increasing LNG dependence in Singapore.