Data center expansion! Electricity demand in Southeast Asia is rising rapidly!

Solar and wind power are expected to power 30% of data centers in Southeast Asia by 2030, without storage.

But data center expansion could deepen ASEAN’s reliance on fossil fuels if measures are not taken to slow renewable energy deployment.

Energy think tank Ember noted that the region’s six largest economies – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – are becoming global data center hotspots, with a total of 2.9GW of new capacity currently under construction.

Malaysia is expected to see the fastest growth in data center electricity use, with demand expected to climb from 9TWh in 2024 to 68TWh in 2030.

Carbon emissions from Malaysian data centers could grow sevenfold to 40 million tonnes of carbon dioxide equivalent (MtCO2e) by 2030, the highest in the region. Emissions in the Philippines are expected to surge by as much as 14 times, while those in Indonesia could quadruple.

Ember said the “right mix of policy support, market access and infrastructure planning” is needed to drive data center growth without driving up emissions.

“Prioritizing solar and wind and improving energy efficiency, supported by strong policies, national data center frameworks and collaboration, will help ensure data centers drive sustainable digital growth rather than deepen reliance on fossil fuels,” said Shabrina Nadhila, Southeast Asia power policy analyst at Ember.

While large tech companies rely on power purchase agreements (PPAs) to ensure access to clean electricity, smaller operators need better access to flexible options such as virtual PPAs and green tariffs. These approaches can also support Energy Storage systemand help manage the volatility of Renewable Energy.

“National frameworks, closer collaboration and greater transparency are critical to ensuring ASEAN’s digital growth also drives energy transition progress,” said Nadhila.