Singapore’s rapid growth as a leading data center hub is straining its limited clean energy supply. A new plan to connect to geothermal power from Sumatra via an undersea cable could offer a sustainable way to meet rising energy demands while supporting regional cooperation.
- Singapore’s data centers use 94% fossil fuel–based electricity.
- A new cable could access South Sumatra’s geothermal power.
- Regional grid links promote sustainable energy sharing.
What happened
Singapore’s data center market is booming, driven by AI growth and tech giants including Amazon, Google, and Microsoft. By late 2025, the city-state hosted 72 data centers with 1.4 gigawatts (GW) of installed capacity, expecting to grow annually by nearly 10%. However, most electricity in Singapore currently comes from imported liquefied natural gas (LNG), with renewables contributing less than 4%, making energy both costly and carbon-intensive.
To address this, Singapore is exploring a cross-border power link to South Sumatra, Indonesia, via a submarine cable under the Strait of Malacca. This interconnection would allow Singapore to utilize South Sumatra’s vast untapped geothermal energy, delivering stable, round-the-clock renewable power to the city’s data centers. This approach could also model future regional collaborations to enhance clean energy access while boosting economic value for resource-rich neighbors.
Why it feels good
This initiative promises multiple benefits for Singapore and the region. It aligns with Singapore’s strict environmental targets requiring new data centers to source at least half of their electricity from low-carbon options. By tapping geothermal power, it reduces reliance on expensive fossil fuels, lowers greenhouse gas emissions, and addresses challenges like high urban density and limited renewable land availability in Singapore.
Additionally, the interconnection encourages regional energy integration and cooperation, helping Indonesia maximize the value of its natural geothermal assets. It moves beyond simply exporting raw energy potential by fostering cross-border investments and infrastructure partnerships, supporting sustainable development for both countries and setting a positive example for Southeast Asia.
What to enjoy or watch next
Keep an eye on the progress of the Sumatra–Singapore grid interconnection project, as its successful implementation could transform how fast-growing urban centers secure clean, affordable energy while managing environmental impact. This collaboration could also influence other nations in the region to pursue similar grid integrations, enhancing energy security and sustainability across Southeast Asia.
Meanwhile, innovations in data center technology to improve efficiency and cooling will continue alongside sourcing cleaner energy. Watching how Singapore balances rapid tech growth with climate goals offers a valuable glimpse into the future of sustainable urban infrastructure and international energy partnerships.