Southeast Asia Eyes Nuclear Power for AI Data Center Boom

BANGKOK, Thailand — As geopolitical tensions escalate in the Middle East and disrupt global energy supplies, a surprising shift is underway in Southeast Asia: a renewed interest in nuclear power. Several nations across the region are revisiting long-held atomic ambitions, driven by surging energy demands fueled by the rapid growth of data centers and the necessitate for greater energy independence. The conflict in Iran is underscoring the vulnerability of existing energy infrastructure, accelerating this move towards alternative sources.

For decades, Southeast Asia has largely relied on fossil fuels to power its economies. However, the increasing demand for electricity, particularly to support the burgeoning artificial intelligence industry and the thousands of data centers springing up across the region, is prompting a reevaluation of nuclear energy. According to the International Energy Agency (IEA), Southeast Asia will account for a quarter of global energy demand growth by 2035. This growth is significantly linked to the more than 2,000 data centers already operating in Indonesia, Malaysia, Singapore, Thailand, Vietnam and the Philippines, with many more planned.

Data Centers and the Energy Equation

The energy consumption of these data centers is substantial. A single AI data center, the IEA notes, can consume as much electricity as 100,000 households. Malaysia, aspiring to turn into a regional AI hub, is experiencing a particularly acute need for reliable and sustainable power. The country already boasts over 500 operational data centers, with another 300 under construction and approximately 1,140 in the planning stages. This surge in demand is a key driver behind Malaysia’s decision to revive its nuclear program, setting a target of bringing atomic energy online by 2031.

This isn’t an isolated trend. Vietnam and Russia recently advanced a nuclear power deal amidst worsening regional energy security concerns. Bangladesh is also pushing to commission its new nuclear power plant, backed by Russia, to address its own energy shortfalls. Indonesia has added nuclear to its national energy plan, aiming to build two small modular reactors by 2034, with cooperation proposals already received from Canada and Russia. Thailand has set a target of adding 600 megawatts of nuclear generating capacity by 2037, recognizing it as a “promising solution” for affordable and clean electricity.

A History Revisited and Current Plans

The Philippines, despite having built a nuclear power plant in the 1970s that was never activated, is arguably the most engaged nation in this renewed push. A newly established atomic energy regulatory authority is expected to “usher in the integration of nuclear power,” with a 2032 target and a roadmap for potential investors approved in February. Officials acknowledge that nuclear electricity may not be immediately cheap, but anticipate long-term benefits in terms of energy reliability, security, and independence. Sedenak Data Center Park in Malaysia, for example, is a key location for this expansion, with a potential IT load of up to 500 MW.

Even countries previously hesitant are showing interest. Cambodia’s latest national strategy signals openness to nuclear energy, while Singapore has outlined plans to study its own atomic potential. Brunei has even informed the International Atomic Energy Agency (IAEA) that it is “carefully exploring nuclear energy.”

Global Momentum and the Role of the US

This resurgence in Southeast Asia mirrors a broader global trend. Nearly 40 nations are now committed to tripling installed nuclear energy capacity by 2050, according to the World Nuclear Association. Southeast Asia is projected to account for nearly a fourth of the 157 gigawatts expected from “newcomer nuclear nations” by mid-century. The United States is actively supporting this shift, with Secretary of State Antony Blinken signing an agreement with Malaysia last year to facilitate civil nuclear cooperation. President Trump has also expressed support for expanding nuclear power within the US, ordering a quadrupling of capacity over the next 25 years.

Risks and Considerations

Despite the growing momentum, significant challenges remain. Concerns over nuclear safety, waste disposal, and the potential for accidents continue to fuel public resistance. The catastrophic events at Chernobyl in 1986 and Fukushima in 2011 serve as stark reminders of the risks involved. Princeton Digital Group’s JH1 and JH2 data centers in Sedenak Tech Park, Malaysia, highlight the scale of infrastructure being developed, and the need for robust safety measures.

Experts caution that while nuclear energy can be a valuable component of a diversified energy portfolio, it should not be viewed as a panacea. Bridget Woodman, with the research group Zero Carbon Analytics, argues that nuclear can appear deceptively attractive when climate goals are falling behind, potentially overshadowing less risky alternatives like renewable energy sources. Countries embarking on nuclear programs from scratch must carefully consider the potential for accidents and the complexities of managing nuclear waste.

What Comes Next: A Cautious Approach

The development of nuclear energy in Southeast Asia is still in its early stages. Each nation faces unique challenges and opportunities, and the path forward will require careful planning, robust regulatory frameworks, and ongoing public engagement. The IAEA will continue to play a crucial role in providing technical assistance and promoting nuclear safety standards. Further research and development into advanced reactor technologies, such as small modular reactors, could also help to address some of the concerns surrounding nuclear power. The region’s energy future hinges on a balanced approach that prioritizes sustainability, reliability, and affordability, while mitigating the risks associated with all energy sources.

The ongoing conflict in the Middle East will undoubtedly continue to shape the energy landscape in Southeast Asia, accelerating the search for alternative sources and reinforcing the need for greater energy security. Vantage Data Centers’ Johor campus, with its 300MW of critical IT load, exemplifies the growing demand and the potential for nuclear energy to play a significant role in meeting it.