Southeast Asian data-centre power demand is set to explode

In Southeast Asia, power demand for data centres is set to quadruple from 2.6 GW to 10.7 GW between 2025 and 2035, accounting for 3-4% of peak demand by 2035, up from 1% in 2025, according to Wood Mackenzie’s base-case scenario. 

What’s more, demand from data centres could surge even further, to 13.7 GW by 2035 under our high-demand scenario, should 75% of proposed data-centre projects be built rather than the 50% we assume in our base case. 

In a recent report entitled 'Feeding the Cloud', Wood Mackenzie Power and Renewables analysts took an in-depth look at the demand and cost outlook for Southeast Asia’s data centres over the coming decade. Fill in the form at the top of the page for a complimentary slide deck from the report, and read on for a brief outline. 

Power hungry 

Some 7-10%, or 48-70 TWh, of all power demand growth in Southeast Asia could stem from data centres over the next 10 years. That is roughly equivalent to Singapore’s total electricity demand in 2024. 

Singapore currently accounts for 1.4 GW or 54% of the region’s data centre load, followed by Malaysia at 0.6 GW. By 2035, Malaysia and Thailand will lead data-centre load demand in the region, at 4.5 GW and 2.6 GW, respectively, outpacing the 1.9 GW forecast in Singapore. 

Malaysia has the biggest data centre project pipeline in Southeast Asia, accounting for 3.4 GW, or 60%, of all proposed projects across the region. By 2035, more than 10% of Malaysia and Singapore’s electricity demand could come from powering data centres alone. 

It’s not just about proliferation, however; data centres are also getting more power hungry. The average load requirement per proposed facility is four times that of existing projects, at 106 MW compared with 24 MW. 

Costs are on the rise 

The on-grid electricity cost for data centres in Southeast Asia is expected to quadruple between 2025 and 2035, too, as demand burgeons, rising from US$2.6 billion to US$10.2 billion. 

On-grid costs for data centres vary significantly across the region. Singapore has the most expensive on-grid tariffs, at US$178/MWh in 2025. This compares with US$60/MWh in Indonesia, the lowest-cost market thanks to fuel and power-tariff subsidies. 

Singapore is closely followed by the Philippines, at US$154/MWh, and Malaysia, at US$133/MWh. The data-centre tariff in Thailand is US$108/MWh, while Vietnam is second-lowest for hyperscalers, at US$74/MWh. This puts the regional average at US$118/MWh. 

Data centres across Southeast Asia enjoy a 7% discount, on average, on their on-grid tariffs relative to a typical industrial user (a textile factory). Peninsular Malaysia is an exception; since July 2025, qualified hyperscalers fall under the country’s ultra high voltage time-of-use scheme, which requires them to pay 8% more than a textile factory. 

High load demand from data centres in Peninsular Malaysia could push spot power prices 21% above our base-case scenario to US$76/MWh by 2035, up from US$43/MWh in 2024. 

The power cost for a typical hyperscale data centre in Southeast Asia can vary enormously, from US$123 million per year in Singapore to US$42 million in Indonesia. Despite its high costs, Singapore remains the data-centre favourite, however, because of its grid reliability – something that is a major concern in other markets.

Not very green 

Southeast Asia has the lowest renewable generation mix and the second-highest grid emissions intensity in Asia Pacific. 

Thailand operates the ‘cleanest’ grid for data centres, boasting the lowest grid emissions intensity in Southeast Asia, at 0.37 kg CO2/kWh, compared with the regional average of 0.54 CO2/kWh. This is despite its renewables share being the third-lowest in the region, trailed only by Indonesia and Singapore. 

Thailand’s grid emissions are lower because it relies on gas for two-thirds of its power, with just 17% coming from coal, while all other markets except Singapore rely on coal for at least half of total generation. 

Things are changing gradually, however. In September 2024, for instance, Malaysia unveiled the Corporate Renewable Energy Supply Scheme (CRESS), allowing business customers to contract renewable power directly from suppliers.

Learn more 

To receive a complimentary selection of slides from our recent report, 'Feeding the Cloud', fill in the form at the top of the page.