Bangkok – A confluence of factors, from surging demand for energy to power artificial intelligence infrastructure to geopolitical instability, is prompting a dramatic reassessment of nuclear power in Southeast Asia. For decades, the region largely avoided atomic energy, but a renewed focus on energy security and decarbonization is driving several nations to revive long-dormant plans and set ambitious targets. The escalating conflict in the Middle East, and its impact on global oil prices, is only accelerating this shift.
Although Southeast Asia has never generated a single watt of nuclear energy, that is poised to change. Nearly half the region – Indonesia, Malaysia, Thailand, Vietnam, and the Philippines – are actively pursuing nuclear power, with potential for operational reactors by the 2030s. Even nations previously hesitant, like Cambodia and Singapore, are now signaling openness to exploring the technology. This regional pivot mirrors a global trend, with nearly 40 countries worldwide now backing a tripling of installed nuclear energy capacity by 2050, according to the World Nuclear Association.
The primary catalyst for this renewed interest is the exponential growth in energy demand, particularly driven by the proliferation of data centers. Southeast Asia is rapidly becoming a hub for artificial intelligence, attracting significant investment from tech giants like Microsoft, Google, and Nvidia. These data centers, essential for AI processing, are incredibly energy-intensive – a single facility can consume as much electricity as 100,000 households, according to the International Energy Agency (IEA). Malaysia, aiming to become a regional AI hub, currently has over 500 operational data centers, with another 1,400 planned or under construction.
Geopolitical Instability and Energy Security
The recent escalation of conflict in the Middle East has underscored the fragility of global energy supply chains and the vulnerability of Asian nations reliant on fossil fuels. The resulting surge in crude oil prices is a key driver behind the accelerated push for nuclear energy, according to Alvie Asuncion-Astronomo of the Philippine Nuclear Research Institute. “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.”
This concern is not limited to the Philippines. Vietnam recently advanced a nuclear power deal with Russia, while Bangladesh is pressing ahead with the commissioning of its Russian-backed nuclear power plant to address chronic energy shortages. These developments highlight a broader trend of nations seeking to diversify their energy sources and reduce dependence on potentially unstable regions.
National Approaches to Nuclear Power
Each Southeast Asian nation is approaching nuclear power with a unique strategy. Vietnam is building two nuclear plants with support from Russia’s Rosatom, projects Prime Minister Pham Minh Chinh has described as “nationally significant, strategic.” Indonesia aims to construct two tiny modular reactors (SMRs) by 2034, and has received cooperation proposals from both Canada and Russia. Thailand has set a target of adding 600 megawatts of nuclear capacity by 2037, viewing it as a crucial component of its clean energy transition.
The Philippines, which began construction of a nuclear power plant in the 1970s but never brought it online, is now making a renewed push. A newly established atomic energy regulatory authority is spearheading the effort, with a 2032 target for operational nuclear power and a roadmap for investors approved in February. While acknowledging the initial costs will be high, Asuncion-Astronomo believes nuclear power will ultimately enhance the Philippines’ energy reliability, security, and independence.
Malaysia’s Data Center Driven Demand
Malaysia’s ambition to become a regional AI hub is particularly driving its nuclear ambitions. Zayana Zaikariah, with the Institute of Strategic &. International Studies in Kuala Lumpur, notes the expansion of industries like data centers, semiconductors, and mining is fueling the demand for energy. The U.S. Has signaled its support for Malaysia’s nuclear program, with Secretary of State Marco Rubio signing a civil nuclear cooperation agreement last year. The U.S. Also has plans to quadruple its own nuclear power capacity within the next 25 years, as stated by President Donald Trump.
Currently, fossil fuels account for 81% of Malaysia’s electricity generation, with solar and wind contributing a mere 2%, according to Ember. Dinita Setyawati of Ember emphasizes the urgency of Malaysia’s decarbonization efforts, given the anticipated surge in demand from AI and data centers, but cautions that the nuclear option requires careful consideration.
Challenges and Concerns Remain
Despite the growing momentum, significant challenges remain. Concerns surrounding nuclear safety, radioactive waste disposal, and the potential for accidents – underscored by the Chernobyl and Fukushima disasters – continue to fuel public resistance. Bridget Woodman, with the research group Zero Carbon Analytics, cautions that nuclear power can appear deceptively attractive as the world falls behind on its climate goals, potentially overshadowing the risks associated with the technology.
The World Nuclear Association estimates that global nuclear capacity could more than triple to 1,446 gigawatts by 2050 if existing reactors remain operational and planned projects reach to fruition. Currently, over 400 reactors in approximately 30 countries generate between 4.5% and 10% of the world’s energy, according to the IAEA and the World Nuclear Association.
The region’s embrace of nuclear power is not without its complexities. Southeast Asian nations must carefully weigh the benefits of energy security and reduced carbon emissions against the inherent risks and long-term costs associated with nuclear technology.
The next key development to watch will be the progress of Vietnam’s nuclear plant construction, backed by Russia, and Indonesia’s selection of partners for its planned SMRs. These projects will serve as crucial test cases for the broader regional shift towards nuclear energy.
What are your thoughts on the potential for nuclear power in Southeast Asia? Share your comments below and join the conversation.
Related reading
