Southeast Asia weighs nuclear power as AI data centers strain energy

Southeast Asia is revisiting nuclear power plans as artificial intelligence-driven demand for electricity accelerates across the region and governments seek alternatives to oil and gas. The urgency has intensified as the Iran war has disrupted energy supplies and helped push up crude oil prices, according to analysts cited by the Associated Press. For several countries, that combination of rising power needs and concerns about volatility in fossil-fuel costs has revived interest in nuclear, including among states that have not yet generated any nuclear electricity.

The Associated Press analysis said five of the 11 Association of Southeast Asian Nations members—Indonesia, Malaysia, Thailand, Vietnam and the Philippines—are pursuing nuclear energy goals, even though Southeast Asia has never produced a single watt of nuclear power. It also reported that countries without firm nuclear plans have signaled their interest, as climate and energy-security pressures mount alongside the growth of AI infrastructure.

The report pointed to Vietnam’s nuclear expansion as a central example. Vietnam is building two nuclear plants backed by Rosatom, which Prime Minister Pham Minh Chinh described as “nationally significant, strategic projects,” and the analysis said the country’s revised atomic energy law took effect in January. It described Indonesia as adding nuclear to its energy plans last year, aiming to build two small modular reactors by 2034, and said officials there have reported cooperation proposals from Canada and Russia.

Thailand’s approach, the report said, includes a target set last year to add 600 megawatts of nuclear generating capacity by 2037, with officials describing nuclear as a “promising solution” for supplying affordable, clean electricity to meet rising demand. The Associated Press analysis also highlighted the Philippines, noting that the country built a nuclear power plant in the 1970s that it never turned on, and that a new nuclear regulatory authority launched last year is intended to “usher in the integration of nuclear power,” with a 2032 target and a roadmap for potential investors approved in February.

The pressure is tied to electricity demand from data centers. The Associated Press said the region now has more than 2,000 data centers, citing the think tank Ember, and it reported that many more are in the pipeline. Malaysia’s role stood out in the analysis: it described Malaysia as aspiring to be Southeast Asia’s AI computing hub and said the country has more than 500 operational data centers, about 300 under construction and roughly 1,140 planned, according to Ember.

The report also connected that buildout to the motivation created by energy insecurity. It said the Iran war has underscored the vulnerability of Asia’s energy supplies and raised the sense of urgency for alternatives to oil and gas. In that context, the analysis quoted Alvie Asuncion-Astronomo of the Philippine Nuclear Research Institute as saying the surge in crude oil prices has raised motivation for countries to speed up nuclear efforts.

The Associated Press analysis further described Malaysia’s decarbonization and energy mix as part of the nuclear reconsideration. It reported that fossil fuels generate 81% of Malaysia’s electricity, while solar and wind provide just 2%, citing Ember. It also reported that Ember’s Dinita Setyawati said “Malaysia’s decarbonization is both urgent and critical as rising demand from AI and data centers is anticipated,” but added that “the nuclear option should be approached cautiously.” Zayana Zaikariah of the Kuala Lumpur-based Institute of Strategic & International Studies similarly linked the wider pull for electricity to expansion in industries including data centers, semiconductors and mining, saying “Everything requires energy.”

The analysis placed the region’s nuclear reset within a broader global trend. It said nearly 40 countries have joined a global push to triple installed nuclear capacity by 2050, and it cited the World Nuclear Association’s expectation that Southeast Asia could account for nearly a fourth of the 157 gigawatts projected for “newcomer nuclear nations” by mid-century. It also quoted World Nuclear Association representative King Lee saying, “There is a more serious, new and growing momentum for the development of nuclear energy in Southeast Asia.”

Still, the Associated Press report said nuclear power risks remain a significant part of the debate. It described concerns over safety and waste as continuing drivers of public resistance in places affected by the 1986 Chernobyl and 2011 Fukushima meltdowns, and it noted that even Japan—after idling its plants following Fukushima—has restarted nuclear generation. Bridget Woodman of the research group Zero Carbon Analytics told the report that as the world strays farther off track from climate goals, nuclear can look “deceptively more enticing” than other less risky alternatives such as renewables, and said that countries considering building nuclear from scratch need to consider “the possibility of accidents.”