Asia's grid constraints tighten as AI and data centres drive power demand, says Fitch report


Photo from South China Morning Post

SINGAPORE (Xinhua): Grid capacity constraints across Asia are becoming increasingly binding as rising electricity demand from artificial intelligence (AI) and data centres puts pressure on power systems, a Fitch research unit has said.

BMI Country Risk and Industry Research said in a note that it had raised its electricity consumption forecasts for several markets, including Thailand, Malaysia and Vietnam, mainly due to data centre investment and expanding AI workloads.

"Over the next decade, we now expect electricity consumption to grow by an annual average of 2.9 per cent in Thailand, 3.3 per cent in Malaysia and 5.6 per cent in Vietnam," it said.

BMI said regulatory tightening in Thailand, Malaysia and Australia was limiting grid-connected load growth, and expected scrutiny to continue as regulators seek to protect grid stability.

It expects a resurgence in thermal power, particularly in emerging markets, as policymakers turn to dispatchable capacity amid stronger demand and deteriorating grid conditions. -- Xinhua

 

 

 

 

 

 

 

 

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