Nuclear Power Returns to Southeast Asia’s Energy Strategy as Demand Surges

Southeast Asian governments are increasingly turning to nuclear energy to meet rising electricity consumption, a shift that exposes the region’s heavy reliance on fossil fuels. The surge in demand is primarily fueled by industrial expansion, the proliferation of electric vehicles, and a competitive race among countries to host data centers for the artificial intelligence sector.

Currently, no nation in Southeast Asia operates a commercial nuclear facility. However, several governments are reviving stalled projects or initiating new studies. On September 8, Vietnam’s state-owned Petrovietnam and South Korea’s KEPCO agreed to strengthen cooperation on the planned Ninh Thuan 2 nuclear plant. Vietnam aims to have its two Ninh Thuan units operational by 2035 and is also pursuing at least one small modular reactor (SMR) project.

Singapore announced it is studying nuclear power and SMRs with an “open mind,” though officials emphasized no final decision has been made. Meanwhile, Indonesia is targeting 500 megawatts of initial capacity by 2032, and the Philippines is working toward 1,200 MW from the same year. Thailand has proposed its first SMR for 2037, while Malaysia and Singapore remain in the research phase.

This renewed interest marks a significant departure from the caution that followed Japan’s 2011 Fukushima disaster, which had delayed regional nuclear ambitions. According to Alvin Chew, a senior fellow at the S. Rajaratnam School of International Studies (RSIS) at Nanyang Technological University in Singapore, recent geopolitical instability has reshaped the energy debate.

The International Energy Agency (IEA) reports that Southeast Asia’s electricity generation has grown by approximately 60% since 2015, with coal accounting for most of that increase and rising from 37% to 47% of the regional mix. Conflicts such as the war in Ukraine and the ongoing Middle East crisis have intensified energy-security concerns for developing nations, even as most Southeast Asian countries have committed to net-zero emissions by 2050 or 2060.

Electricity demand in the region is projected to grow by an average of 5.3% annually between 2026 and 2030. “Nuclear energy is deemed to be the viable solution to address both challenges of climate and energy security,” Chew said.

A key factor driving the reconsideration of nuclear power is the advancement of technology. Modern SMRs differ significantly from the conventional reactors used in Fukushima. Unlike traditional plants, SMRs are smaller, modular units that can be constructed incrementally.

“SMRs have changed the nuclear conversation in Southeast Asia because they potentially make nuclear compatible with smaller grids, smaller countries and more incremental investment,” said Jie-Sheng Tan-Soo, assistant professor and director at the Lee Kuan Yew School of Public Policy in Singapore. He noted that conventional nuclear deployment previously required massive upfront capital, long construction timelines, and grids capable of absorbing large generating units.

However, SMRs do not automatically solve economic challenges. Many designs are still in early stages, and promises of cost reductions through mass production remain unproven on a commercial scale. Additionally, the rapid expansion of data centers is placing new pressure on energy systems. The IEA expects electricity consumption from Southeast Asian data centers to more than double by 2030, with over 70% of current capacity concentrated in Singapore and Johor, Malaysia.

Julius Cesar Trajano, a research fellow at RSIS, observed that countries are approaching nuclear energy with greater emphasis on governance and regulatory capacity than in previous attempts. Nevertheless, significant hurdles remain, including the need for independent regulators, specialized workforces, and robust radioactive waste and emergency response systems. The region’s susceptibility to earthquakes, volcanoes, and tsunamis further complicates site selection and planning.

Public opinion remains divided. A recent Philippine government survey indicated that more than 70% of respondents support nuclear energy’s potential role in electricity generation. In contrast, the Indonesia Energy Transition Outlook 2026 reported that 78% of respondents view nuclear as their least-preferred energy source.

“The biggest obstacle is the political will to proceed with adoption of nuclear energy, which, to a certain extent, is dependent on public perception,” Chew said. While political momentum for nuclear power in Southeast Asia is stronger than a decade ago, experts warn that moving from ambition to operational reality involves a complex process of financing, licensing, construction, and safe operation.