Southeast Asia Eyes Nuclear Power as AI Demand Strains Energy Supply

 

BANGKOK, Thailand — March 26, 2026 — Countries across Southeast Asia are reconsidering nuclear energy as rising demand from Artificial Intelligence-driven data centers and global energy instability push governments to seek more reliable power sources.
The renewed interest comes as the ongoing Iran war disrupts global oil and gas supplies, highlighting the region’s dependence on fossil fuels. Analysts say the surge in oil prices has increased urgency for Southeast Asian nations to diversify their energy mix.
AI Boom Driving Energy Demand
Nuclear Plans Regain Momentum

Malaysia Targets AI Hub Status

Global Push for Nuclear Energy
Risks and Challenges Remain
A Turning Point for Energy in the Region
The rapid expansion of AI infrastructure is a major factor behind the shift. Thousands of data centers across countries like Malaysia, Indonesia, Vietnam, and the Philippines are consuming massive amounts of electricity.
According to the International Energy Agency, a single AI-focused data center can use as much power as 100,000 households. With over 2,000 data centers already operating in the region and more under development, energy demand is expected to surge significantly in the coming years.
Several Southeast Asian nations are now reviving long-delayed nuclear energy programs. Countries including Indonesia, Malaysia, Thailand, Vietnam, and the Philippines are actively exploring or developing nuclear power projects.
Vietnam is moving forward with plans to build two nuclear power plants in partnership with Rosatom, while Indonesia aims to deploy small modular reactors by 2034.
In the Philippines, the government has set a target to introduce nuclear energy by 2032, supported by a newly established regulatory authority and investment roadmap.
Among the region’s economies, Malaysia stands out as a major driver of this shift. The country aims to become a regional AI and data center hub, attracting investments from global tech companies such as Microsoft, Google, and NVIDIA.
To support this growth, Malaysia has revived its nuclear energy program and is targeting 2031 for its first operational plant. Officials say the expansion of industries like semiconductors, mining, and data centers is significantly increasing energy demand.
The renewed interest in nuclear energy is not limited to Southeast Asia. Nearly 40 countries, including the United States, Japan, and China, have committed to expanding nuclear capacity as part of efforts to reduce carbon emissions and secure long-term energy supplies.
Industry groups estimate that nuclear power capacity could triple globally by 2050, with Southeast Asia contributing a significant share of new installations.
Despite its potential, nuclear energy continues to face concerns over safety, cost, and waste management. Historical disasters such as Chernobyl disaster and Fukushima disaster still influence public opinion and policy decisions.
Experts caution that countries entering the nuclear sector must carefully consider risks, regulatory frameworks, and long-term sustainability. Some analysts argue that renewable energy sources like solar and wind may offer safer alternatives.
As Southeast Asia balances rapid technological growth with energy security, nuclear power is emerging as a potential solution to meet future demand.
With AI continuing to expand and energy markets becoming more volatile, the region’s shift toward nuclear energy could mark a major transformation in how it powers its digital future.