Post by : Anis Farhan

AI Needs Energy, and Gas Delivers

Artificial Intelligence may be driving innovation across sectors, but its hunger for energy is reshaping entire industries — and nowhere is this more visible than in Southeast Asia’s growing natural gas trade. In 2025, as hyperscalers, cloud providers, and AI startups push for data center expansion, countries like Malaysia, Indonesia, and Thailand are experiencing a fresh wave of liquefied natural gas (LNG) demand.

From new terminals and floating storage regasification units (FSRUs) to revamped pipeline projects and long-term offtake agreements, Southeast Asia’s energy map is being redrawn — all thanks to AI’s insatiable appetite for stable, low-carbon power.

Why Gas, and Why Now?

At first glance, AI and natural gas might seem worlds apart. But powering massive GPU clusters and cooling sprawling data centers requires uninterrupted, scalable, and relatively clean power. In regions where renewable infrastructure is still catching up and coal remains dominant, natural gas is the fastest transition fuel — offering a lower-emission alternative without sacrificing reliability.

In countries like Vietnam and Indonesia, data center operators are lobbying for dedicated LNG-based power plants. And in Malaysia, state-owned Petronas has inked new deals with hyperscalers to supply LNG for integrated data park projects through 2030.

AI is, quite literally, fueling the new gas economy in Southeast Asia.

Malaysia: The Regional LNG Leader

Malaysia stands out as the largest LNG exporter in Southeast Asia and the fifth largest globally. As AI demand rises, so do Malaysia’s ambitions.

In early 2025, Petronas launched a new LNG bunkering facility in Johor and began upgrading its regasification terminals in Peninsular Malaysia. The goal is twofold:

• To ensure stable domestic supply for the growing number of data parks

• To increase re-export capabilities for regional AI clusters, especially in Singapore and the Philippines

Petronas has also signed multi-billion dollar agreements with U.S. and Japanese tech firms, providing long-term energy security in exchange for AI infrastructure investments in Malaysian tech parks.

This strategic trade-off — gas for GPUs — is creating new forms of bilateral digital-energy diplomacy.

Indonesia’s Floating Infrastructure Advantage

Indonesia, another key LNG player, is embracing FSRUs (Floating Storage and Regasification Units) to meet decentralized demand near AI hubs. With major data centers coming up in Batam, Surabaya, and Central Java, floating LNG import stations offer flexible and cost-effective solutions.

In January 2025, Pertamina Gas Negara (PGN) deployed two new FSRUs off the Sumatra coast, supplying power to local grids that serve AI-backed industrial parks.

The Indonesian government is also fast-tracking approvals for AI-infrastructure-linked energy projects, combining digital and traditional economic growth agendas under one roof.

Thailand and Vietnam Join the Game

Both Thailand and Vietnam, traditionally importers of LNG, are scaling up import capacity and aligning energy policy with digital development. Thailand’s PTT Public Company has formed joint ventures with Gulf-based LNG suppliers to ensure a 10-year energy runway for planned hyperscale facilities near Bangkok.

Vietnam, meanwhile, recently opened its first privately-operated LNG terminal in Ba Ria-Vung Tau, tied directly to a digital industrial cluster co-developed with Korean and U.S. partners.

These developments signal a blurring of lines between tech and trade, where AI infrastructure is directly influencing energy investment decisions and cross-border partnerships.

The New Trade Map: LNG Meets AI Logistics

What’s emerging is a complex but coherent regional system where:

• LNG flows support AI hub expansion

• AI companies co-invest in energy infrastructure

• Cross-border digital trade depends on natural gas security

Ports like Tanjung Pelepas (Malaysia) and Tanjung Priok (Indonesia) are being upgraded to handle AI infrastructure shipments alongside LNG, creating hybrid logistics hubs.

Meanwhile, Singapore, which lacks its own gas reserves, is positioning itself as the AI coordination capital, linking upstream gas flows from neighbors with downstream AI services and innovation.

Environmental Tensions and Long-Term Questions

The irony isn’t lost on observers: AI is often hailed as the path to decarbonization — yet its energy footprint is leading to a second gas boom.

Environmental groups are raising concerns about long-term dependency on fossil fuels, even cleaner ones like LNG. They argue that Southeast Asia risks locking itself into gas-based infrastructure when renewables should be scaling faster.

Governments, for their part, maintain that gas is a “bridge fuel” — and with AI now critical to economic competitiveness, stability takes precedence over purity.

Conclusion: The Future of Trade is Hybrid

In many ways, Southeast Asia’s new gas rush is not about LNG or AI alone. It’s about how infrastructure, energy, and digital trade now move together — often influencing one another in real-time.

As nations prepare for the next phase of growth, those who can align their energy strategy with their digital ambitions will dominate the regional landscape. In 2025, AI isn’t just transforming business models — it’s redrawing the very blueprint of trade and infrastructure in Southeast Asia.

Disclaimer

This article is intended for editorial and informational purposes only. It does not constitute energy investment, trade policy, or business advice. Readers are encouraged to conduct independent research and consult experts before making decisions related to energy infrastructure or technology sectors.