Southeast Asia's LNG Demand Jumps 16% Amid Data Centre Boom
Rapid growth in Southeast Asia's data centre capacity is driving up demand for liquefied natural gas (LNG), according to energy research consultancy Wood Mackenzie.
The company projects that LNG demand will jump by 16% annually through 2035, fueled by the expansion of data centres in the region. By 2035, Southeast Asia's data centre capacity is expected to reach 9.4 gigawatts, up from 2.8 gigawatts today.
This growth trajectory contrasts with South Asia, where renewable energy sources such as solar and wind power are becoming increasingly cost-competitive, making natural gas less viable for data centres.
Wood Mackenzie Principal Analyst Fadhlullah Omarali noted that 'these are large, creditworthy offtakers with power needs that remain stable regardless of economic cycles.'