A new report by energy think tank EMBER reveals that solar and wind energy could supply up to 30 percent of the electricity demand for data centers across Southeast Asia by 2030 amid surging digital infrastructure growth.

The report, titled "From AI to emissions: Aligning ASEAN's digital growth with energy transition goals", highlights Indonesia as the country with the second-highest increase in electricity demand for data centers, projected to quadruple from 6.7 TWh in 2024 to 26 TWh in 2030. Without clean energy integration, this rise could triple emissions in Java, Madura, and Bali − from 5 MtCO₂e to 19 MtCO₂e.

Similar patterns are seen across the region. Malaysia, leading in data center expansion, is expected to see electricity demand jump from 8.5 TWh to 68 TWh, with emissions rising nearly sevenfold. The Philippines follows closely, where electricity use is forecast to grow from 1.1 TWh to 20 TWh, resulting in a 14-fold increase in emissions.

“Data center growth is straining ASEAN’s coal- and gas-heavy power grids,” Pritesh Swamy, Head of Data Centre Research & Insights, Asia Pacific at Cushman & Wakefield, said as quoted in a statement on Wednesday, May 28, 2025.

“Scaling up renewables and modernizing infrastructure through investment and regional collaboration is essential to ensure sustainable growth.” he added.

The report argues that with the right policy support, the region can decouple data center growth from carbon emissions. EMBER estimates that solar and wind could power nearly one-third of future data center needs − even without battery storage, which has been a key barrier to renewable adoption.

To enable this transition, EMBER calls for flexible green energy access for data center operators, including power purchase agreements (PPAs), virtual PPAs, and green tariffs. Currently, such options are limited in parts of the region. For example, Indonesia still lacks a green tariff scheme, unlike Malaysia, Singapore, Thailand, and the Philippines. Its proposed power wheeling regulation − allowing companies to directly procure renewable power − is still under legislative review.

Governments are also urged to enforce national data center frameworks that include energy efficiency mandates at the design stage, to reduce electricity use and grid burden.

“Without urgent action, ASEAN’s data center boom risks undermining regional energy transition goals,” Shabrina Nadhila, EMBER’s Southeast Asia Power Policy Analyst, said. “Prioritizing solar, wind, and efficiency − backed by strong policies and transparency − can align digital growth with climate ambition.”