Over two in five expect data centres to strain Singapore's energy supply

Only 13% expect the sector to expand renewable generation, a SEAS survey found.

Data centre growth is expected to put pressure on Singapore’s energy supply and infrastructure, with 44% expecting this impact, according to a survey by the Sustainable Energy Association of Singapore (SEAS).

Another 31% of respondents expect data centre growth to increase demand for energy storage and grid upgrades, whilst 13% expect data centres to expand renewable energy production, and only 5% see new financing and investment opportunities.

Energy professionals also identified data quality and availability and implementation costs as the main barriers to artificial intelligence (AI) adoption in Singapore, with 58% citing each factor. A further 31% pointed to regulatory uncertainty.

Across Southeast Asia, 92% of the 100 energy professionals surveyed expect AI to play a significant or moderately significant role in the energy transition over the next five years.

Some 60% of respondents said they are running AI pilot projects or implementing AI solutions, including 24% who said they are doing so successfully. Only 6% have no current plans to explore AI solutions within their businesses.

Edwin Khew, Chairman of SEAS, said AI could support renewable energy operations through output and weather forecasting, demand and grid responses, battery storage, microgrids, and predictive maintenance.

“However, respondents are also aware of the constraints around data quality and availability,” Khew said. “For AI to be successfully applied to grid and demand management, there needs to be real-time visibility from smart metering and sensors, supported by communications and data infrastructure.”

The survey found that 78% of respondents believe Southeast Asia’s energy transition is moving slower than it should, with geopolitical setbacks cited as a factor. More than 70% identified grid infrastructure and regional connectivity as the main barriers.

On the ASEAN Power Grid, 24% expect significant cross-border power trading to be established in the near term, whilst 61% expect bilateral and sub-regional agreements to expand. Another 15% believe national priorities will continue to outweigh regional integration.

SEAS conducted the State of the Energy Transition Survey 2026: How geopolitics and AI are reshaping Southeast Asia’s energy landscape online between July and August 2026. It surveyed 100 energy professionals across Southeast Asia.