AI Boom to Boost Southeast Asia’s LNG Demand
Demand for liquefied natural gas (LNG) in Southeast Asia has found a new major driver apart from the years-long efforts to switch away from coal-fired power generation. The AI boom and the data center construction in Asia are set to materially change Southeast Asia’s LNG demand outlook with a significant upside, as combined-cycle gas turbines (CCGT) remain the most reliable 24/7 power provider…
The rise of artificial intelligence is set to dramatically increase the demand for liquefied natural gas (LNG) in Southeast Asia, according to analysts at Wood Mackenzie. As data centers proliferate across Singapore, Malaysia, Indonesia, and Thailand, the need for additional LNG imports will grow through 2035. With data center construction projected to triple by 2035, power demand from hyperscalers will surge from 17 terawatt-hours to 57 TWh.
Grid-scale battery storage may remain commercially immature, making gas turbines the most reliable option for consistent 24/7 power. Southeast Asia's grid infrastructure may lag behind the surge in power demand, potentially constraining further data center investment. While India is constructing data centers, the country's high cost of gas-to-power generation makes it less viable for hyperscalers compared to renewables and battery storage.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
