AI-driven data centre growth set to reshape energy demand in Singapore

Published: Asian Power

Singapore’s electricity demand is set to rise significantly as AI-driven data centre growth accelerates, with usage projected to nearly triple between 2025 and 2030.

In an interview with Asian Power, Bob Johnson, VP Analyst at Gartner, and Gentrack’s Jason Ong outlined the scale of this shift and its implications for the energy system.

Data centre demand is expected to grow by around 25% annually, increasing its share of total electricity consumption from 4% to approximately 11%. This growth is projected to account for roughly one third of the increase in generation capacity.

The impact is also highly localised. Data centres operate continuously and can draw large amounts of electricity, which, when concentrated in specific areas, can create significant spikes in peak demand and place pressure on transmission infrastructure.

Electricity demand overall is projected to grow at around 3.2% annually, with supply expected to grow faster. However, the continuous, high-load nature of this demand limits the use of intermittent renewable energy sources, increasing reliance on gas in the near term.

Rising demand is already affecting costs, with electricity prices increasing by up to 12% as supply pressures build. At the same time, many grid systems are not yet able to respond quickly enough to fluctuations in demand, highlighting the need for smarter controls and greater automation.

Listen to the full discussion >>

If you are exploring how to respond to these shifts, we are working with utilities globally on similar challenges. Talk to us.