Southeast Asia's Data Center Boom Sets Stage for LNG Demand Surge
Southeast Asia's liquefied natural gas (LNG) demand is set to surge due to the rapid growth of the data center industry in the region. According to a report by Wood Mackenzie, the AI boom and data center construction will drive LNG demand growth in countries such as Singapore, Malaysia, Indonesia, and Thailand.
The report estimates that the combined-cycle gas turbines (CCGT) will remain the most reliable 24/7 power provider for hyperscalers due to relatively immature renewable energy-plus-batteries across the region. As a result, Southeast Asian nations where data centers are booming will need additional LNG imports through 2035 as domestic natural gas output peaks.
The data center boom could raise annual LNG demand growth in Southeast Asia by 16% through 2035, with Southeast Asia's data center project pipeline expected to more than triple to 9.4 gigawatts (GW) by 2035. The power demand from hyperscalers will jump from 17 terawatt-hours (TWh) now to 57 TWh.