GSMA: Data Centre Energy Demand from Southeast Asian Telcos Poses Limited Risk

According to Steven Moore, head of climate action at global mobile network trade body GSMA, energy demand and emissions growth from new data centres built by Southeast Asian telecommunications companies do not pose a "big risk." This is primarily because telcos in the region have not planned significant expansions of their data centre capabilities, unlike operators in China, India, and South Korea. In addition, the region faces local energy constraints in Singapore, grid pressure in southern Malaysia, and a global shortage of specialized semiconductor chips for artificial intelligence.

A GSMA report released on Thursday (Sep 10) highlights that about 70 percent of a telco's operational emissions stem from mobile networks and cell towers, meaning limited data centre expansion over the next few years will not heavily add to electricity consumption. In contrast, markets such as South Korea have announced plans to build over 6 gigawatts (GW) of new AI data centre capacity by 2030 and more than 16 GW by 2035. If fully developed, these South Korean data centres could consume 30 to 40 terawatt-hours of electricity in 2030, five times their current usage.

Across the wider Asia-Pacific region, operational emissions from telcos grew by 6 percent between 2019 and 2024. In Southeast Asia, emissions rose by 20 percent between 2019 and 2025, yet renewable energy accounted for only 4 percent of the region's electricity consumption, compared to 15 percent across Asia-Pacific. Fuel costs for operators reached an estimated US$400 million in 2024, with operators consuming around 350 million litres of petrol and diesel and tower companies using an additional one billion litres. These costs are expected to be considerably higher in 2026 as fuel prices surge due to the Iran war.

The report noted that mobile operators in South and Southeast Asia face obstacles in accessing renewable power because national grids remain heavily reliant on fossil fuels and procurement mechanisms, such as power purchase agreements, remain limited or under development. Despite these challenges, Moore stated that Southeast Asian operators are eager to decarbonize by improving energy efficiency and adopting solar, battery, and lower-carbon energy solutions. The GSMA expects energy markets to undergo further liberalisation in the coming years, positioning mobile network operators as ready buyers of renewable energy as soon as it becomes accessible.