The Information, Communication and Technology (ICT) industry is expanding rapidly across the Association of Southeast Asian Nations (ASEAN). The analysis explores how this rapid growth is driving up electricity demand, raising concerns over rising emissions as many ASEAN power grids remain reliant on fossil fuels.
The report shows that six major ASEAN economies—Indonesia, Malaysia, the Philippines, Singapore, Thailand and Viet Nam—are emerging as global data centre hotspots, with 2.9 GW of new capacity currently in the pipeline.
The power sector’s slow pace of decarbonisation further threatens progress. Malaysia is projected to see the fastest growth in data centre electricity use, with demand expected to rise from 9 TWh in 2024 to 68 TWh in 2030. This would account for 30% of national power consumption and exceed Singapore’s total national electricity use in 2023.
The resulting emissions from Malaysia’s data centres could increase sevenfold, reaching 40 MtCO2e by 2030, the highest in the region. The Philippines is projected to see a rise of up to 14 times in emissions, while Indonesia’s could quadruple.
Data centre growth is straining power systems in ASEAN, where most electricity still comes from coal and gas. Scaling up renewables and modernising infrastructure through proactive investment and regional collaboration is key to ensuring sustainable growth and advancing the energy transition.
However, greening data centres is feasible: around a third of data centre electricity demand in 2030 could be met with solar and wind, without the need for battery storage—one of the biggest perceived barriers to clean energy adoption. With the right mix of policy support, market access and infrastructure planning, ASEAN can power data centre growth without driving up emissions.
“ASEAN’s booming data centre industry risks derailing energy transition goals without urgent action,” said Shabrina Nadhila, Energy Analyst at Ember. “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.”
While large tech companies rely on Power Purchase Agreements (PPAs) to secure clean electricity, smaller operators need better access to flexible options like virtual PPAs and green tariffs. These can also support storage, helping manage the variability of renewables.
Energy efficiency also remains a key lever. Embedding efficiency from the design phase and setting national guidelines would help lower electricity use and ease pressure on the grid.
Governments and industry should work together to align data centre expansion with the energy transition. National frameworks, stronger collaboration and better transparency are critical to ensuring that ASEAN’s digital growth also drives progress.
Ember is an independent energy think tank that aims to accelerate the clean energy transition with data and policy. It creates targeted data insights to advance policies that urgently shift the world to a clean, electrified energy future.
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