Data center growth drives LNG demand in Southeast Asia

The expansion of hyperscale data centers in Southeast Asia is driving a structural increase in liquefied natural gas (LNG) demand. According to an analysis by Wood Mackenzie, the data center project portfolio in Southeast Asia is expected to grow from 2.8 GW to 9.4 GW by 2035, with electricity demand rising from 17 TWh to 57 TWh in the same period. Combined cycle gas turbines (CCGT) are currently viewed as the most viable technology to provide the 24/7 reliability required by these centers, as grid-scale battery storage remains commercially immature in much of the region.

In Latin America, the energy landscape is facing a strategic shift as interest in hydrogen appears to be losing political momentum. While hydrogen projects continue, the International Energy Agency notes that investment momentum weakened in 2025 due to high costs, regulatory barriers, and insufficient infrastructure. This has led to a renewed regional focus on natural gas as an immediate energy solution, highlighting the tension between long-term decarbonization goals and current energy autonomy needs.