Setting the scene

This report examines the rapid expansion of data centres in Southeast Asia and the resulting pressure on power grids. It highlights that while the region is becoming a global hotspot for digital infrastructure, the reliance on fossil-fuel-dominated grids threatens climate targets, particularly in Malaysia, Indonesia, and the Philippines.

• The ICT sector is estimated to contribute between 2.1% and 3.9% of global greenhouse gas emissions, with data centres accounting for one-third (360 TWh) of the sector's total electricity use, which exceeded 1,000 TWh in 2023.
• Data centre electricity demand in ASEAN is projected to nearly double by 2030 compared to 2024 levels, with the Asia-Pacific region expected to hold 34% of global operational capacity by 2028.
• Malaysia is expected to experience the most significant increase in power consumption among the region's top six hotspots, with demand rising from 8.5 TWh in 2024 to 68 TWh by 2030, potentially representing 30% of the country's total national demand.
• The Philippines and Indonesia are also projected to see sharp rises in power consumption: the Philippines from 1.1 TWh in 2024 to 20 TWh in 2030, and Indonesia from 6.7 TWh in 2024 to 26 TWh by 2030.
• Due to fossil-dependent grids, data centre emissions are projected to surge significantly by 2030: a sevenfold increase in Malaysia, a rise from 5 MtCO2e to 19 MtCO2e in Indonesia's JAMALI grid, and a 14-fold increase in the Philippines' Luzon-Visayas grid (from 0.8 MtCO2e to 10.5 MtCO2e).
• To sustainably power data centres and avoid further fossil fuel dependence, the top five data centre-consuming countries in the region will require an estimated $45 to $75 billion in solar and wind capacity investments by 2030.
• Major tech companies face challenges in meeting carbon-free goals in Southeast Asia due to limited renewable availability; for example, in 2023, only 0.15% (4.1 GWh) of Google's 2.8 TWh electricity consumption in the region came from renewable sources.

APA

Ember (2025). Setting the scene. https://ember-energy.org/chapter/setting-the-scene/

Chicago

Ember. Setting the scene. 2025. https://ember-energy.org/chapter/setting-the-scene/.

Wikipedia

{{cite report |author=Ember |title=Setting the scene |date=27 May 2025 |url=https://ember-energy.org/chapter/setting-the-scene/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025setting, author = {{Ember}}, title = {{Setting the scene}}, institution = {Ember}, year = {2025}, month = may, url = {https://ember-energy.org/chapter/setting-the-scene/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }