At a recent gathering of Asia-Pacific utility leaders in Hong Kong, the accelerating demand for electricity driven by artificial intelligence (AI) and data centers took center stage, highlighting urgent challenges for regional power systems amid ongoing decarbonization efforts. The session, held on September 15 under the auspices of the Association of the Electricity Supply Industry of East Asia and the Western Pacific (AESIEAP), emphasized how the rapid growth of computing power is reshaping energy planning across the region.
Joseph Law, AESIEAP president and managing director of CLP Power, framed the discussion around Hong Kong’s evolving energy needs as the city advances its first five-year development blueprint, consistent with priorities outlined in the 2026 Policy Address. Construction of the Sandy Ridge Data Facility Cluster is underway, aiming to deliver 180,000 petaflops by 2032, a significant increase—roughly 36 times—the city’s current computing capacity. The government’s objectives for this project include high-efficiency computing, a stable electricity supply, and a continued shift toward low-carbon energy sources.
Law cited the International Energy Agency’s characterization of a new “Age of Electricity,” where electricity demand is rising 50 percent faster annually than the previous decade’s average and outpaces overall energy demand by at least 2.5 times. He noted that the nature of electricity load is undergoing rapid transformation due to factors including geopolitical developments, extreme weather events, the growth of electric vehicles, and surging demand from AI-powered data centers. For utilities like CLP, this means not only increasing clean energy generation but also accelerating grid modernization and maintaining public trust amid these shifts.
Financial Secretary Paul Chan underlined Hong Kong’s role as a “super connector” by deepening cross-border energy cooperation and harmonizing green standards regionally. He asserted that energy policy functions as an industrial policy, with access to clean, reliable, and affordable power being a decisive factor in attracting investment.
Several international participants acknowledged Hong Kong’s unique position as a gateway linking the Chinese Mainland with global markets, serving as a hub for dialogue among policymakers, utilities, investors, and technology innovators addressing shared regional challenges.
Energy infrastructure coordination was another key theme. Jimmy Khoo, CEO of SP PowerGrid, stressed the need to integrate digital infrastructure planning with energy infrastructure from the outset, departing from the traditional model of siting data centers before grid planning. He advocated for collaborative planning among government agencies, utilities, and developers to enhance flexibility, reduce costs, and expedite implementation.
In Hong Kong, data centers’ electricity consumption rose nearly 12 percent in the first half of 2026 and now accounts for over 7 percent of local sales for CLP Holdings, according to CEO T.K. Chiang. Citing industry research, Chiang forecasted that electricity demand from Chinese data centers could more than triple by 2030. He emphasized that the power system’s capacity to support the Northern Metropolis—a forthcoming innovation and technology hub—will be vital for sustaining the city’s digital and industrial growth.
Wong Kim-yin, chair for Asia at the World Energy Council and CEO of Sembcorp Industries, described the surge in AI-related electricity demand as a “tsunami” confronting limited grid connections and generation capacity. She highlighted the importance of deploying intelligent systems to ensure reliable power delivery meets the needs of digital expansion.
The dialogue on the intersection of AI growth and energy infrastructure is set to continue at the Conference of the Electric Power Supply Industry (CEPSI) 2027. This marquee AESIEAP event is anticipated to assemble over 2,000 stakeholders from utilities, governments, technology firms, research bodies, and industry partners across Asia-Pacific to foster innovation and deeper regional cooperation at a critical juncture for the energy transition.