Southeast Asia reconsiders nuclear energy as power demand surges

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Nuclear energy is drawing renewed attention across Southeast Asia, as governments look for ways to meet rapidly rising electricity demand driven in part by competition to host artificial intelligence-focused data centers.

Across the region, several countries are reviving previously shelved nuclear initiatives and setting ambitious timelines. If these plans move forward, nearly half of Southeast Asia could introduce nuclear power in the 2030s, while even nations without concrete programs have begun signaling interest.

Despite decades of ambition, Southeast Asia has yet to generate any nuclear power. However, that could soon change as governments face mounting pressure to cut emissions contributing to climate change while also meeting expanding energy needs.

Analysts say the Iran war has highlighted the fragility of Asia’s energy supply chains, intensifying urgency to find alternatives to oil and gas. Rising crude prices linked to the escalating conflict have further incentivized countries to accelerate nuclear development efforts, according to Alvie Asuncion-Astronomo of the Philippine Nuclear Research Institute.

Energy security concerns were underscored this week as Vietnam and Russia advanced a nuclear power agreement. Elsewhere in Asia, Bangladesh is pushing ahead with a Russian-backed nuclear plant to address persistent energy shortages.

The International Energy Agency projects Southeast Asia will account for a quarter of global energy demand growth by 2035. This surge is partly driven by more than 2,000 data centers spread across Indonesia, Malaysia, Singapore, Thailand, Vietnam and the Philippines, according to Ember, with many more facilities under development.

Malaysia stands out in particular, aiming to position itself as a regional AI computing hub. The country has attracted major investments from global technology firms including Microsoft, Google and Nvidia.

The region’s renewed interest reflects a broader global shift. Nearly 40 countries — among them the United States, Japan, South Korea and China — have joined an initiative to triple nuclear energy capacity by 2050. The World Nuclear Association estimates Southeast Asia could contribute nearly a quarter of the 157 gigawatts expected from new nuclear nations by mid-century.

“There is a more serious, new and growing momentum for the development of nuclear energy in Southeast Asia,” said King Lee of the association.

Five members of the Association of Southeast Asian Nations — Indonesia, Malaysia, Thailand, Vietnam and the Philippines — are actively pursuing nuclear energy programs.

Vietnam is moving forward with two nuclear plants supported by Russia’s state nuclear corporation, Rosatom. Prime Minister Pham Minh Chinh described the projects as “nationally significant, strategic projects,” following the enactment of a revised atomic energy law in January.

Indonesia incorporated nuclear energy into its national energy plan last year, targeting the construction of two small modular reactors by 2034. Officials say proposals have already been submitted by Canada and Russia, with additional offers expected.

Thailand has set a goal of adding 600 megawatts of nuclear capacity by 2037. Officials from the country’s Electricity Generating Authority described nuclear as a “promising solution” for delivering affordable and clean electricity amid rising demand.

The Philippines, which built but never activated a nuclear plant in the 1970s, has taken significant steps toward adoption. A new regulatory authority established last year is expected to “usher in the integration of nuclear power,” officials said, as the country targets 2032 for deployment and unveiled an investment roadmap in February.

“We are not anticipating that nuclear electricity will be cheap at the onset,” said Asuncion-Astronomo. But in the long term, she said it will improve the Philippines’ energy reliability, security, independence and eventually costs.

“The ongoing conflict in the Middle East definitely demonstrates how volatile fossil fuel costs are and the instability of the supply,” she said. “Nuclear is an alternative solution that can give us more self-reliance in terms of energy.”

Interest is also emerging among countries without firm commitments. Cambodia’s latest national strategy indicates openness to nuclear energy, while Singapore has begun studying its feasibility. Brunei has also informed the International Atomic Energy Agency that it is “carefully exploring nuclear energy.”

The rapid growth of AI-driven data centers is a key factor behind rising electricity demand. These facilities, typically large and windowless, house extensive computing infrastructure. According to the IEA, a single standard AI data center can consume as much electricity as 100,000 households.

Malaysia currently hosts more than 500 operational data centers, with roughly 300 under construction and over 1,100 more planned, Ember reports. The country revived its nuclear ambitions last year and aims to bring atomic energy online by 2031.

“A lot more industries are expanding in Malaysia,” said Zayana Zaikariah of the Institute of Strategic & International Studies in Kuala Lumpur, pointing to growth in data centers, semiconductors and mining. “Everything requires energy.”

The United States has also stepped in to support nuclear cooperation. Secretary of State Marco Rubio signed an agreement with Malaysia last year, describing it as “a signal to the world of how civil nuclear cooperation is something that is available.” President Donald Trump has likewise promoted nuclear expansion, ordering a fourfold increase in U.S. nuclear capacity within 25 years in 2025.

“There’s more incentive to follow through compared to previous flirtations with nuclear energy,” said Amalina Anuar of the ISEAS-Yusof Ishak Institute, noting that Malaysia’s finite oil and gas reserves are driving the shift toward alternative energy sources.

Fossil fuels currently account for 81% of Malaysia’s electricity generation, while solar and wind contribute just 2%, according to Ember.

“Malaysia’s decarbonization is both urgent and critical as rising demand from AI and data centers is anticipated,” said Dinita Setyawati with Ember. “But the nuclear option should be approached cautiously.”

Globally, nuclear capacity could more than triple to approximately 1,446 gigawatts by 2050 if current reactors remain operational and national targets are achieved, according to the World Nuclear Association. At present, more than 400 reactors across about 30 countries generate roughly 380 gigawatts, accounting for between 4.5% and 10% of global energy supply, estimates from the IEA and nuclear industry groups show.

However, concerns about safety, waste disposal and supply risks persist. Public opposition intensified following the 1986 Chernobyl disaster and the 2011 Fukushima meltdown. Even so, Japan has begun restarting reactors that were shut down after the Fukushima incident.

Bridget Woodman of Zero Carbon Analytics cautioned that as climate targets slip further out of reach, nuclear energy may appear more attractive than less risky renewable options.

Southeast Asian nations “considering starting a nuclear industry from scratch” need to weigh “the possibility of accidents,” she said.

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