Power demand from data centres, electric vehicles and green industrial parks across Southeast Asia is expected to rise by more than 100 terawatt-hours over the next three to four years, according to the 2026 Southeast Asia Green Economy Report published by consulting firm Bain & Company and Standard Chartered.
The report said meeting the surge in electricity demand will require investments exceeding $200 billion, with more than half expected to flow into data centres as operators seek faster access to power and aim to avoid delays linked to grid connections.
Southeast Asia’s green economy is currently valued at $290 billion and is projected to expand to $430 billion by 2030, reflecting growing investment in clean energy and low-carbon industries across the region.
However, only around 60% of the $540 billion in announced green investments across power and electric vehicle supply chains is considered likely to proceed under current conditions, the report found.
Renewable energy projects in countries including Vietnam, Thailand and Indonesia have faced setbacks, with 50% to 60% cancelled over the past five years due to regulatory uncertainty, permitting issues and limited grid capacity.
The report warned that electricity demand growth is expected to outpace infrastructure development, with annual grid investment shortfalls estimated at $18 billion by 2035.
It added that shifting global priorities have altered the direction of the green economy, with energy security and economic growth increasingly taking precedence over sustainability targets.