From AI to emissions: Aligning ASEAN’s digital growth with energy transition goals
While data centres could account for 2% to 30% of national power demand in 2030, a third of ASEAN data centres could be powered by solar and wind.
27 May 2025
32 Minutes Read
Table of Contents
Executive summary
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1
Setting the scene
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2
Greening data centres
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Conclusion
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Supporting materials
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Highlights
+59 TWh
Malaysia’s data centre anticipated power demand from 2024 to 2030 level, the sharpest among other ASEAN countries
7x
Malaysia’s increase in emissions between 2024 and 2030, resulting from data centre power demand
~30%
2030 data centre power demand in most ASEAN countries that can be met by solar and wind via the grids without needing storage
Executive summary
If ASEAN’s data centre hubs grow rapidly, how will this affect the energy transition agenda?
As the region’s data centre industry grows, a reliable energy supply is required to meet 24/7 demand. Solar, wind and energy efficiency options are key to building sustainable data centres and minimising the climate impacts from rapid growth.
Global digitalisation trends, such as cloud computing and generative Artificial Intelligence (AI), are driving rapid growth in the Information, Communication and Technology (ICT) industry, increasing pressure to align with climate commitments.
However, the power sector’s slower decarbonisation raises concerns about surging electricity demand and emissions. As a potential key hub for data centre operations, the IEA projects that Southeast Asia’s data centre electricity use will nearly double by 2030 compared to 2024. This underscores the urgent need to prioritise energy efficiency and clean energy to ensure sustainable growth.
The six major economies in ASEAN (the Association of Southeast Asian Nations)—Indonesia, Malaysia, the Philippines, Singapore, Thailand and Viet Nam—are emerging as the world’s next data centre hotspots, with around 2.9 GW of total capacity currently in the pipeline.
However, the power grids supplying most of these data centres remain heavily reliant on fossil fuels, posing a challenge for these tech giants striving to meet their renewable energy targets. With data centres projected to account for 2-30% of national electricity demand by 2030 in all these countries, excluding Viet Nam, the resulting rise in emissions poses a major challenge for their power sectors.
Key takeaways
01
Data centre power consumption is expected to grow unevenly across ASEAN
Malaysia is set to become ASEAN’s fastest-growing data centre hub, with power demand reaching 68 TWh by 2030 from 9 TWh in 2024, accounting for 30% of national power consumption and with this growth surpassing Singapore’s 57 TWh of total power use in 2023. While growth is expected to be slower in Singapore and Thailand, Indonesia and the Philippines show steady increases, and Viet Nam sees only a modest rise with a small share of overall power consumption.
02
ASEAN data centre boom could sharply increase emissions in Malaysia, Indonesia and the Philippines
Dominated by coal and gas, Malaysia’s rapid data centre growth could drive a sevenfold increase in emissions from 5.9 MtCO2e in 2024 to 40 MtCO2e in 2030, the highest among other countries. Indonesia’s data centre power sector emission is expected to quadruple (+13 MtCO2e), while the Philippines’ emission growth will rise by 14 times, from 0.8 MtCO2e in 2024 to 10.5 MtCO2e by 2030.
03
Solar and wind could meet up to 30% of data centres’ electricity demand without needing batteries
Around 30% of data centre electricity demand in 2030 can be fulfilled with wind and solar via the grids, without the need for battery storage. This indicates that battery costs are no barrier to adopting these technologies. Battery storage will still play a vital role in meeting more electricity demand over the medium to long term.
04
Corporate renewable procurement options are available, but not widely accessible in some countries
More robust procurement options in ASEAN countries, such as virtual PPAs and green tariffs, should be made more accessible and reliable to allow smaller data centre companies to afford a solar and wind supply. Expanding these options can improve access to and affordability of solar and wind, while broader programs and targeted incentives can accelerate storage adoption alongside intermittent renewables.
Supportive policies for data centres to procure solar and wind and adopt energy efficiency measures are essential to accommodate the growth of sustainable data centres. Beyond unbundled Renewable Energy Certificates, Power Purchase Agreements (PPAs) are a preferred way globally for giant tech companies to secure a stable and renewables supply with a guaranteed long-term agreement. Therefore, more accessible corporate PPAs can drive indirect investments in renewables.
Faster solar and wind power deployment in ASEAN, energy efficiency gains in the data centre industry and sectoral requirements guiding data centre growth are crucial to sustainably managing growing demand from the industry. Accelerating solar and wind deployment and integrating energy efficiency from the design phase are essential to reduce emissions from data centre power use.
Governments and industry should work together to set clear efficiency goals and support this transition through national frameworks and targeted incentives. Strengthening collaboration and improving data transparency will be key to ensuring that data centres in ASEAN drive both digital growth and sustainable energy progress.
ASEAN’s booming data centre industry risks derailing energy transition goals without urgent action. Prioritising solar and wind power, as well as energy efficiency, supported by strong policies, a national framework for data centres and collaboration, would help ensure data centres drive sustainable digital growth rather than deepen reliance on fossil fuels.
The rapid growth of data centres is placing pressure on power systems across ASEAN, where approximately 70% of electricity is still generated from coal, oil and gas. To ensure sustainable growth and accelerate the energy transition in this region, it is vital to scale up renewable energy and modernise the infrastructure in data centre hubs through strategic investments and regional collaboration.
Pritesh Swamy
Head of Data Centre Research & Insights for Asia Pacific, Cushman & Wakefield
Head of Data Centre Research & Insights for Asia Pacific, Cushman & Wakefield
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