SE Asia’s Power Demand From Data Centres, EVs To Grow By More Than 100TWh In Next 5 Years
Adedokun Waliyu
1 min read
Power demand growth for green industrial parks, data centres and electric vehicles in Southeast Asia is forecast to grow by more than 100 terawatts per hour (TWh) in the next three to four years, according to a report published by Bain & Company and Standard Chartered.
The demand from these sectors is expected to require more than $200 billion of investments, according to the 2026 Southeast Asia’s Green Economy Report.
More than half of this investment will go to data centres with almost all operators willing to pay a premium to avoid grid connection delays.
Southeast Asia’s green economy is currently valued at $290 billion and on track to reach $430 billion by 2030.
However, only around 60% of the $540 billion in green spending announced across the region’s power and EV value chains between now and 2030 is on a credible path to deployment under current conditions.
About 50-60% of renewable energy projects in Vietnam, Thailand, and Indonesia have been cancelled in the last five years due to system constraints including unclear power purchase agreement structures, permitting, and grid connection rules.
Southeast Asia’s power demand growth is expected to exceed the pace of grid upgrades, as there is an estimated $18 billion annual shortfall in grid investments by 2035.
Also, rules of the green economy have changed due to structural shifts globally with security and growth taking priority over sustainability.
