As data centres fuel a sharp rise in energy demand, Singapore is turning to Australia’s vast solar potential and Malaysia’s rainforests for clean power solutions. The city-state, which aims to peak carbon emissions by 2030 and achieve net zero by 2050, faces a pressing energy challenge due to its reliance on imported fossil fuels and its limited space for large-scale renewable energy projects.
Australia has recently announced a groundbreaking solar farm project expected to provide Singapore with up to two gigawatts (GW) of power through an undersea cable.
This initiative aligns with Singapore’s ambitious renewable energy targets, including generating two gigawatts from local solar installations by 2030. However, Singapore’s compact size limits its ability to develop significant wind or hydropower resources, making imported energy crucial.
Currently, data centres in Singapore already consume about seven percent of the city-state’s electricity, with projections indicating this will rise to 12 percent by 2030. To meet this growing demand, Singapore’s Energy Market Authority has approved plans to import up to 5.2 GW of renewable energy from Cambodia, Indonesia, and Vietnam. These sources include a mix of solar, wind, and hydropower, though the latter has faced criticism for contributing to environmental issues like deforestation.
The ambitious plans are not without challenges. The proposed energy imports require the installation of 4,300 kilometers (2,670 miles) of undersea cable and must navigate regulatory approvals from multiple stakeholders, including Singapore’s energy regulators, the Indonesian government, and Australian Indigenous communities. Additionally, there are concerns about transmission distances, potential energy losses, and the intermittency of renewable sources.
Experts highlight the need for diversification in Singapore’s renewable energy strategy to mitigate risks associated with over-reliance on specific sources. As Euston Quah from Nanyang Technological University suggests, “The more one can diversify, the better in terms of energy security.”
This situation reflects a broader global trend where countries with high energy demands look abroad to fulfill their needs. For instance, Thailand imports 12 percent of its electricity from coal and hydropower. Singapore’s push for international renewable energy trade could accelerate the development of the region’s renewable resources and drive a cleaner energy transition.
