How Data Centres Are Redefining Asia's Energy Demand

Energy demand in some of Asia’s most developed countries had plateaued for years. Japan is the clearest example. Efficiency gains and a shrinking population led to a 10% year-on-year consumption decline since 2008. Surging demand from hyperscale data centers and semiconductor plants driven by the AI boom is now the primary engine for grid growth, forcing grid operators to rapidly rethink capacity.

As explained by Wood McKenzie Senior Analyst for Asia Pacific Power Research Yanqi Cao, “Data centres are no longer just a niche load; they are the primary driver of transformational demand across Asia Pacific. In markets like Japan, which have seen energy demand decline for a decade, data centres are single-handedly reversing the trend.”

According to PwC, Asia Pacific’s data centre capacity is projected to grow at a compound annual rate (CAGR) of 21% from 2024 to 2028, while electricity consumption is expected to jump from 320 terawatt-hours in 2024 to 780 terawatt-hours by 2030.

In a high digital adoption scenario, Deloitte projects data centre electricity consumption across the region could increase by more than 5X, from under 200 TWh in 2025 to over 1,000 TWh by the mid-2030s. Total electricity demand is projected to rise 50% by 2035 as new data centre investments are expected to hit $800 billion in 2030.

This isn’t simply “more demand.“ It’s potentially disruptive with requirements arriving faster and more concentrated than anything Asia’s energy planners have to accommodate before.

Asia's Power Grid at a Tipping Point

Before getting into individual key data centre hubs, let’s answer the key question: is there enough power for all of this?

On current evidence, not comfortably.

More than 32 gigawatts of planned data centre capacity is under way across 1,150 projects in Asia Pacific. This is reshaping how power grids accommodate large electricity users across the region.

Regulators are responding by implementing stricter terms of access rather than allocating more supply. Data centre developers and operators must increase battery storage. They must also manage curtailment risk and meet tighter clean energy procurement rules.

Why Renewables Can’t Close the Gap Alone

Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam are emerging as global data centre hotspots. Yet solar and wind are expected to meet only 30% of the region's data centre electricity demand by 2030, and that's without even needing battery storage.

Looking at the bigger picture, without urgent action to factor data centre power demand into new renewables capacity planning, ASEAN’s energy transition goals may be derailed.

For example, Indonesia's data centre electricity demand is expected to quadruple, from 6.7 terawatt hours in 2024 to 26 terawatt hours in 2030. Without clean energy integration, emissions in the Java, Madura and Bali grid could nearly quadruple as a consequence, from 5 to 19 million tonnes of CO2 equivalent.

Malaysia is another example. The country‘s projected data centre electricity demand can potentially jump from 8.5 to 68 terawatt hours over the same period. The associated emissions may rise by as much as 7X if the power mix doesn't change.

A Closer Market by Market Look at Asia’s Data Centre Hockey Stick Growth

The Johor-Singapore Special Economic Zone (JS-SEZ) As A Bi-National Data Centre Corridor

The (JS-SEZ) is a key development to track in Asia Pacific’s data centre landscape. This economic hub about four times the size of Singapore’s total land area has 9 flagship zones and 11 targeted zones, bannered by the 745-acre Sedenak Tech Park and the 509-acre Nusajaya Tech Park.

Johor’s operational data centre capacity more than doubled in 2025 alone, from 401 megawatts to 897 megawatts, with an additional 2,099 megawatts already in the pipeline. Empyrion Digital, a Singapore-headquartered next-generation data centre developer and operator, is targeting the first phase of its 200+MW hyperscale campus called MY1 to be Ready-for-Service in Q4 of 2026. For this campus alone, Tenaga Nasional Berhad (TNB) has committed 145MW of initial power allocation with earliest energisation projected for September 2026.

Bangkok as Southeast Asia's Emerging Data Centre Capital    

Thailand’s data centre growth is in the spotlight as it’s set to overtake Indonesia in planned data centre capacity between 2026 and 2031. The pipeline of under-construction, announced, and planned projects already exceeds 2.87 gigawatts as of September 2025, roughly 3.7 times more than that of Indonesia.

In May 2026, Thailand’s Board of Investment approved a wave of projects worth a combined $29 billion, the largest of which is a $25 billion expansion by TikTok across Bangkok, Samut Prakan, and the Chachoengsao provinces.

Cost is one factor that makes Thailand an attractive data centre destination. The construction cost in the country ranges from $7 million to $8 million per MW, which is lower compared to other hubs such as Singapore, Indonesia, and Malaysia

A Continuous Influx of Hyperscalers Against Japan’s Ageing Grid

If the current trend stays, Japan’s data centres will consume as much electricity as 15 to 18 million households by 2034. This represents 60% of the country’s total power demand growth.

Japan’s Ministry of Economy, Trade and Industry expects the country’s data centre capacity to skyrocket by 68% between 2022 and 2026. This is equivalent to an increase in power requirements from just over 1.2 gigawatts to over 2 gigawatts. To meet this additional demand, Tokyo Electric Power Company is responding with $3.25 billion in planned grid investment by 2027.

Japan is also ramping up its data centre-related clean energy initiative. The government has launched a subsidy programme offering up to $3.2 million per project to cut data centre emissions. It runs from fiscal 2026 through fiscal 2029. The move responds in part to IEA findings that global electricity demand from data centres rose 17% in 2025, with AI-focused facilities alone up 50%.

Indonesia’s Data Centre Pipeline Could Be Outrunning Its Power Grid

Indonesia's build-out is arguably the clearest real-time test of whether generation can keep pace with commitments. ST Telemedia Global Data Centers, soon under KKR and Singtel ownership following a roughly S$9 billion deal, is expanding its Jakarta campus with a pipeline exceeding 360 megawatts. Batam is emerging as a second hub: in April 2026, state utility PLN and operator DayOne agreed to build a 450-megawatt campus there, which would make it the country's single largest data centre power customer.

Whether the grid can actually absorb all of this is the open question. Indonesia's colocation data centre capacity is projected to more than double, from 900 megawatts in 2023 to 2,000 megawatts by 2028, against total installed generation capacity of roughly 83 gigawatts. One analysis frames this plainly: capital is arriving faster than the power grid, or the labour market, can absorb it.

Gas-fired Power Starts at the Wellhead

Meeting the power demand for Asia’s data centres is not just about building enough power plants. Data centres‘ electricity demand is now significant enough to show up in planning for gas production, processing, and delivery.

There are no solid numbers for Asia yet, but if what’s happening in more mature data centre markets is indicative of where the region is heading, the oil and gas sector should prepare for increased production.

For example, the Hamm Institute for American Energy projects that supplying AI-driven power demand will likely require the United States to boost natural gas production by 10% to 15% by the early 2030s. According to their report, assuming a conservative estimate for a data centre capacity of 55 GW that will be 100% supplied with natural gas, roughly 10 billion cubic feet per day of additional gas would be needed by 2030.

Linked to LNG production is a potential labour and workforce challenge. The construction or fabrication of most structures similar activities and skills, whether for pipelines, power plants, or data centres. In 2025, an International Energy Agency report warned of critical hiring bottlenecks that threaten to hamper the building of energy infrastructure, delay projects, and increase system costs.

A similar Brunel report concurs with 51% of C-suite leaders in conventional energy citing skills shortages as the biggest barrier to scaling.

This is where Brunel can play a crucial role in Asia’s data centre expansion with 50 years of experience globally and 30 years in Asia. With our extensive track record in conventional energy recruitment, coupled with expertise in global mobility, compliance, and workforce solutions, we work collaboratively with the sector at large to anticipate talent needs.

Renewables as Simultaneous Buildouts

Operators want greener power behind their facilities, but "green" only happens if someone builds the renewable capacity and grid connections to deliver it. This is exactly where the labour bottleneck bites.

In ASEAN alone, where the majority of the data centre boom in the region is concentrated, it’s estimated that the renewables sector needs to fill 11 million jobs by 2050 to meet the Paris Agreement objectives. Globally, jobs requiring “green skills“ increased by 22.4%, but qualified workers only grew by 12.3%. This means that the demand for renewables talent is outpacing supply twice as fast.

Regular recruitment channels may not suffice. Taylor Hopkinson, powered by Brunel, with 17 years of dedicated niche expertise in finding and deploying renewables specialists, focuses on bridging this gap. With a global renewables talent pool, Taylor Hopkinson is equipped to staff renewable energy projects at every stage of their lifecycle, whether it’s through expat deployment or local hiring.

Manpower is the Common Denominator Across Data Centres and the Energy that Will Power Them

The conversation around Asia's data centre boom tends to stop at gigawatts and capital expenditure, but that's only half the story. Every new facility coming online in Malaysia, Thailand, Vietnam or Indonesia is a bet on power that doesn't exist yet with gas plants still waiting to be commissioned, solar and storage projects still to be built, and grid connections still to be strung up. 

You can't talk about the data centre boom in Asia without talking about the energy needed to power it. And you can't talk about that energy without talking about the workforce needed to build and run it. While it’s often overlooked, it's probably where the real constraint on Asia's data centre ambitions shows up first.