Southeast Asia Is Betting on Nuclear Power to Feed AI's Hunger for Electricity

Southeast Asia is making a dramatic pivot toward nuclear energy, driven by the explosive growth of AI data centers that demand more electricity than entire cities. Five nations in the region are actively pursuing nuclear power for the first time in their histories, with Vietnam, Indonesia, Thailand, Malaysia, and the Philippines all setting ambitious targets to bring reactors online between 2031 and 2037 . This represents a fundamental shift in how the world's fastest-growing tech hub plans to power its digital infrastructure.

The urgency is real. Southeast Asia will account for roughly one-quarter of global energy demand growth by 2035, according to the International Energy Agency (IEA) . A single AI data center consumes as much electricity as 100,000 households, the IEA estimates . With more than 2,000 data centers already operating across Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines, and hundreds more under construction, the region faces an energy crisis if it relies solely on fossil fuels .

Why Is Southeast Asia Suddenly Embracing Nuclear Energy?

The timing is no accident. Recent geopolitical tensions, particularly the escalating conflict in the Middle East, have exposed the fragility of Asia's energy supply chains. Rising crude oil prices caused by the Iran war have accelerated nuclear ambitions across the region . Beyond security concerns, Southeast Asian nations recognize that their finite fossil fuel reserves cannot sustain the AI boom indefinitely. Malaysia, for example, generates 81% of its electricity from fossil fuels while solar and wind provide just 2%, making nuclear an attractive alternative for long-term energy independence .

The global momentum matters too. Nearly 40 nations, including the United States, Japan, South Korea, and China, have committed to tripling installed nuclear capacity by 2050 . Southeast Asia is expected to account for nearly one-quarter of the 157 gigawatts of new capacity from "newcomer nuclear nations" by mid-century, according to the World Nuclear Association . This global shift has legitimized nuclear as a climate-friendly solution in the eyes of Southeast Asian policymakers.

"There is a more serious, new and growing momentum for the development of nuclear energy in Southeast Asia," said King Lee, with the World Nuclear Association.

King Lee, World Nuclear Association

What Are the Specific Nuclear Plans Across the Region?

Each Southeast Asian nation is pursuing nuclear on its own timeline and with different international partners. Here's what's happening on the ground:

  • Vietnam: Building two nuclear plants backed by Russian state corporation Rosatom, with Prime Minister Pham Minh Chinh calling them "nationally significant, strategic projects." The country's revised atomic energy law took effect in January .
  • Indonesia: Added nuclear to its energy plan last year, aiming to build two small modular reactors by 2034. Officials say Canada and Russia have issued formal cooperation proposals .
  • Thailand: Set a target last year of adding 600 megawatts of nuclear generating capacity by 2037, calling nuclear a "promising solution" for meeting rising electricity demand .
  • Malaysia: Revived its nuclear program last year and set a 2031 target for bringing atomic energy online. The country has more than 500 operational data centers, with another 300 under construction and around 1,140 planned .
  • Philippines: Built a nuclear power plant in the 1970s that it never activated. A new atomic energy regulatory authority launched last year will "usher in the integration of nuclear power," with a 2032 target and an approved roadmap for investors .

Even nations without firm plans are signaling interest. Cambodia's latest national strategy expressed openness to nuclear, Singapore outlined plans to study atomic potential, and Brunei told the International Atomic Energy Agency (IAEA) it is "carefully exploring nuclear energy" .

Singapore

How Are Governments Preparing for Nuclear Energy Deployment?

Southeast Asian nations are taking concrete steps to build the regulatory and diplomatic infrastructure needed for nuclear power. Here's what they're doing:

  • Regulatory Frameworks: The Philippines launched a new atomic energy regulatory authority last year and approved an investor roadmap in February. Vietnam's revised atomic energy law took effect in January, creating the legal foundation for nuclear development .
  • International Partnerships: Countries are securing cooperation agreements with established nuclear powers. Russia's Rosatom is backing nuclear projects in Vietnam and Bangladesh, while Canada and Russia have issued formal proposals to Indonesia. The U.S. State Department also signed a civil nuclear cooperation agreement with Malaysia .
  • Capacity Building: Experts like Alvie Asuncion-Astronomo of the Philippine Nuclear Research Institute are helping policymakers understand nuclear's long-term benefits, even if initial costs are higher than fossil fuels .

"We are not anticipating that nuclear electricity will be cheap at the onset. But in the long term, it will improve the Philippines' energy reliability, security, independence and eventually costs," explained Alvie Asuncion-Astronomo, Philippine Nuclear Research Institute.

Alvie Asuncion-Astronomo, Philippine Nuclear Research Institute

Asuncion-Astronomo added that the ongoing conflict in the Middle East demonstrates how volatile fossil fuel costs are, making nuclear "an alternative solution that can give us more self-reliance in terms of energy" .

What Are the Risks and Concerns?

Despite the momentum, significant challenges remain. Southeast Asian nations are "considering starting a nuclear industry from scratch," which means they must grapple with the possibility of accidents, nuclear waste management, and supply chain vulnerabilities . Public resistance to nuclear power has deep roots, stemming from catastrophic events like the 1986 Chernobyl and 2011 Fukushima disasters .

Experts also warn that nuclear can appear deceptively attractive as climate goals slip further out of reach. Bridget Woodman, with the research group Zero Carbon Analytics, cautioned that renewable energy alternatives like solar and wind may carry less risk than building an entirely new nuclear industry from scratch . The region will need to balance the urgency of meeting AI energy demands with the long-term safety and sustainability of nuclear infrastructure.

Still, the global nuclear renaissance is real. More than 400 reactors in about 30 countries currently generate around 380 gigawatts of energy, making up between 4.5% to 10% of the world's electricity supply . Even Japan, which idled all its plants after Fukushima, is restarting reactors. If Southeast Asian nations follow through on their targets, the region could become a significant player in the global nuclear energy landscape by the 2030s, fundamentally reshaping how the world powers artificial intelligence.