Southeast Asian Nations Turn to Nuclear Power to Meet AI Data Center Energy Demands

Thursday, March 26, 2026 at 2:37 AM

Multiple Southeast Asian countries are reviving nuclear power programs to address surging electricity needs from artificial intelligence data centers. The ongoing conflict in Iran has intensified concerns about energy security, pushing nations like Vietnam, Malaysia, and the Philippines to accelerate atomic energy plans for the 2030s.

BANGKOK, Thailand (AP) — Countries across Southeast Asia are taking a fresh look at atomic energy as they scramble to satisfy massive electricity demands from artificial intelligence data centers.

Multiple nations in the region are dusting off abandoned nuclear programs and establishing bold goals, with nearly half potentially operating atomic power by the 2030s. Even nations without existing nuclear strategies have expressed interest in pursuing this energy source.

Despite decades of atomic ambitions, Southeast Asia has never generated any nuclear electricity. However, this situation appears poised to shift as governments face mounting pressure to cut greenhouse gas emissions while accommodating expanding power requirements.

The conflict involving Iran is highlighting Asia’s energy supply vulnerabilities, creating additional urgency around discovering alternatives to petroleum and natural gas throughout Southeast Asia, according to industry experts.

Rising crude prices from the intensifying Middle East conflict have increased motivation for nations to accelerate their atomic programs, according to Alvie Asuncion-Astronomo from the Philippine Nuclear Research Institute.

Vietnam and Russia moved forward with a nuclear energy agreement this week as regional energy security worries intensified. In South Asia, Bangladesh is working quickly to activate its new atomic facility, also supported by Russia, to tackle the nation’s power shortages.

The International Energy Agency projects Southeast Asia will represent 25% of worldwide energy demand growth through 2035. This stems partly from over 2,000 data facilities across Indonesia, Malaysia, Singapore, Thailand, Vietnam and the Philippines, according to research organization Ember.

Additional data centers are currently being developed.

Malaysia provides the clearest example, seeking to become Southeast Asia’s artificial intelligence computing center while attracting investments from technology leaders including Microsoft, Google and Nvidia.

Southeast Asia’s renewed nuclear focus reflects worldwide patterns.

Almost 40 countries — including the United States, Japan, South Korea and China — have committed to tripling nuclear capacity by 2050. Southeast Asia will represent nearly 25% of the 157 gigawatts anticipated from “newcomer nuclear nations” by mid-century, the industry-supported World Nuclear Association reports.

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

Five Association of Southeast Asian Nations members — Indonesia, Malaysia, Thailand, Vietnam and the Philippines — are pursuing atomic power.

Vietnam is constructing two nuclear facilities with backing from Russian state corporation Rosatom. These represent “nationally significant, strategic projects,” according to Prime Minister Pham Minh Chinh. Vietnam’s updated atomic energy legislation became effective in January.

Indonesia incorporated nuclear power into its latest energy blueprint last year, targeting construction of two small modular reactors by 2034. Indonesian officials report that Canada and Russia have submitted formal partnership proposals with others expected to follow.

Thailand established a goal last year of adding 600 megawatts of nuclear capacity by 2037. Atomic energy represents a “promising solution” for providing sufficient affordable, clean electricity to satisfy increasing demand, Thailand’s Electricity Generating Authority officials told a Bangkok conference.

The Philippines has the longest history with atomic energy among Southeast Asian nations, constructing a nuclear facility in the 1970s that was never activated.

A newly established atomic energy regulatory body launched last year will “usher in the integration of nuclear power,” Philippine officials stated. The country established a 2032 timeline and approved an investment roadmap in February.

“We are not anticipating that nuclear electricity will be cheap at the onset,” said Asuncion-Astronomo. However, she noted it will enhance the Philippines’ energy reliability, security, independence and eventually reduce 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.”

Southeast Asian countries without concrete plans are also expressing interest.

Cambodia’s recent national strategy indicated receptiveness to nuclear power, while Singapore outlined plans last year to examine its atomic possibilities.

Even Brunei, the small oil and gas sultanate, informed the International Atomic Energy Agency that it is “carefully exploring nuclear energy.”

The artificial intelligence data centers driving Southeast Asia’s expanding energy requirements are massive windowless structures containing rows of computers.

A typical AI data center uses electricity equivalent to 100,000 homes, the IEA reports.

Malaysia operates more than 500 data centers. Approximately 300 additional facilities are under construction with around 1,140 in planning stages, Ember data shows.

Malaysia reactivated its nuclear program last year and established a 2031 target for bringing atomic energy online.

“A lot more industries are expanding in Malaysia,” said Zayana Zaikariah, with the Kuala Lumpur-based Institute of Strategic & International Studies, citing growing interest in data centers, semiconductors and mining. “Everything requires energy.”

The United States is providing assistance.

Secretary of State Marco Rubio signed an agreement with Malaysia last year. He called it “a signal to the world of how civil nuclear cooperation is something that is available.” President Donald Trump also views nuclear power as essential for meeting data center demands. In 2025, he ordered quadrupling U.S. nuclear capacity within 25 years.

“There’s more incentive to follow through compared to previous flirtations with nuclear energy,” said Amalina Anuar, with the ISEAS-Yusof Institute, a Singapore-based research organization. Malaysia’s finite oil and gas reserves are driving the search for alternative energy sources.

Fossil fuels produce 81% of Malaysia’s electricity, Ember research found, while solar and wind contribute only 2%.

“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.”

Global nuclear capacity will more than triple — reaching approximately 1,446 gigawatts — by 2050 if current reactors remain operational and governments achieve stated objectives, the World Nuclear Association projects.

Over 400 nuclear reactors across roughly 30 countries produce around 380 gigawatts of energy, the IAEA’s Power Reactor Information System reports. This represents between 4.5% to 10% of global energy, according to IEA and nuclear association estimates.

Safety, waste disposal and supply chain concerns persist. Public opposition intensified following the catastrophic 1986 Chernobyl and 2011 Fukushima nuclear disasters. However, even Japan, which shut down all plants after Fukushima, is reactivating its nuclear facilities.

Bridget Woodman with research group Zero Carbon Analytics noted that as the world falls further behind climate targets, nuclear energy can appear deceptively attractive compared to other less risky options like renewable energy.

Southeast Asian nations “considering starting a nuclear industry from scratch” must consider “the possibility of accidents,” she warned.

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