Data centre growth will introduce a significant new load to ASEAN power systems. As digitalisation expands, sustainable integration of this demand will require coordinated approaches across power system planning, flexibility, regional connectivity and clean energy procurement frameworks.
1. Digitalisation could become a significant new source of electricity demand
ASEAN data centre electricity use could reach 171–258 TWh by 2035, compared with around 20 TWh in 2023. The range reflects uncertainty in market expansion, the pace of new capacity coming online, efficiency improvements and the shift towards hyperscale facilities.
2. The scale of additional power capacity depends strongly on how data centre growth unfolds
Under the modelled scenarios, meeting data centre demand could require 53.5–82.0 GW of additional capacity by 2035. In the Reference case, around 25.1 GW is gas capacity.
3. Power availability and connection timelines could increasingly shape where data centre growth occurs
Data centres can typically be developed within two to five years, while generation, transmission and grid reinforcement may require five to eight years or longer. This timing mismatch is already encouraging new approaches to capacity allocation and connection.
4. Flexibility can reduce capacity requirements, while regional interconnection has a greater impact on the generation mix and emissions.
In the modelled flexibility cases, flexibility lowers data centre-attributable capacity from 64.5 GW to 44.4 GW and reduces gas requirements by up to 30%, while the ASEAN Power Grid scenario avoids additional coal capacity and cuts battery storage needs by around two-thirds.
5. Data centre growth can become a catalyst for renewable investment when supported by credible procurement frameworks.
Among 100 tracked operators, 53 have disclosed net-zero targets covering 69% of capacity, while renewable procurement is already evident across a larger share. Robust mechanisms will be needed to translate this demand into credible renewable energy development.