Sembcorp Says AI Boom Is Turning Into a Global Energy Race

The rapid expansion of artificial intelligence is intensifying competition for power infrastructure, with Sembcorp Industries warning that countries seeking to attract data centres and AI investment will increasingly need to secure reliable, scalable and sustainable electricity supplies.

Global electricity consumption from AI facilities is projected to reach around 1,000 terawatt-hours annually by 2030, more than double the roughly 415 TWh consumed today, according to International Energy Agency figures cited by Sembcorp.

Meeting that demand will require greater investment in power generation, energy storage and grid infrastructure as AI and digital infrastructure place additional pressure on electricity systems.

AI Growth Raises Demand for Reliable Power

As countries compete to attract data centres, semiconductor plants and other AI-related investment, access to dependable electricity is becoming an increasingly important factor in deciding where new infrastructure is built.

Sembcorp said the growth of AI is changing priorities across the energy sector.

While decarbonisation remains important, electricity systems must also provide the reliability, resilience and scalability required by energy-intensive digital infrastructure.

Renewable energy sources such as solar and wind also create new operational requirements because their output changes with weather conditions, time of day and seasonal patterns.

This increases the need for energy storage, flexible generation and stronger grid management as renewable capacity expands alongside AI-driven electricity consumption.

Sembcorp Uses AI Across Energy Operations

AI is also being applied within Sembcorp’s own energy operations.

The company is using digital tools to analyse operating data, predict equipment behaviour and support faster decision-making across its portfolio of thermal generation, renewable energy and energy-storage assets.

AI-enabled video analytics is deployed at gas plants, wind farms and solar sites to identify potential safety risks and support workforce training.

Sembcorp is also deploying Hyperspace, an AI-powered predictive maintenance platform developed by its digital and engineering teams.

The platform analyses equipment performance and identifies potential problems before they escalate, allowing engineers to respond earlier and improve asset reliability.

Sembcorp Supplies One-Third of Singapore’s Data Centre and Semiconductor Power Demand

Sembcorp currently supplies close to one-third of the electricity demand from Singapore’s data centre and semiconductor sectors.

Its customers include Equinix, ST Telemedia Global Data Centres and Singtel through long-term power purchase agreements.

The company has also expanded its electricity supply agreement with Micron Technology by another 150 MW, bringing the total contracted capacity with the semiconductor manufacturer to 600 MW.

The agreement strengthens Sembcorp’s role in supplying power to one of Singapore’s major semiconductor manufacturing operations.

Alongside gas-fired generation, Sembcorp provides renewable energy solutions to help customers meet their decarbonisation targets while maintaining reliable power supplies.

AI Infrastructure Expansion Extends Across APAC

Sembcorp is also developing energy and infrastructure projects supporting AI and data-centre growth outside Singapore.

In Vietnam, the company is involved in developing the country’s first AI-ready data-centre campus at Saigon Hi-Tech Park.

In Indonesia, its Tembesi Innovation District in Batam is being developed to support data centres and other advanced digital infrastructure through large-scale power infrastructure.

The company is also developing the Wilton International Data Centre in the UK, while Alinta Energy’s generation and development portfolio in Australia provides another platform for serving future AI-related electricity demand.

Sembcorp is simultaneously strengthening its energy portfolio through investments in liquefied natural gas, renewable generation and grid-scale energy storage.

Energy Infrastructure Becomes Part of the AI Race

The rapid growth of AI is creating requirements that extend well beyond computing hardware and data centres.

New AI infrastructure requires large amounts of continuous electricity, increasing pressure on power generation, transmission networks, energy storage and grid reliability.

Sembcorp said the next phase of AI growth will therefore require stronger grids, greater storage capacity and a balanced energy mix capable of delivering reliable and sustainable electricity at scale.

At the same time, AI is increasingly being used within the energy sector itself to support predictive maintenance, safety monitoring and more efficient power-system operations.

The result is a growing link between the two industries: energy infrastructure is becoming essential to the expansion of AI, while AI is becoming an increasingly important tool for operating energy infrastructure.