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Power, not chips, will decide where Asia’s AI gets built

Hong Kong's Sandy Ridge Data Facility Cluster, already under construction, is targeted to deliver 180,000 petaflops by 2032 — about 36 times the city's present computing power — as regional utility executives confront AI-driven electricity demand that CLP Power managing director Joseph Law said is growing 50 per cent faster each year than the average of the past decade. Speaking in Hong Kong on September 15 as president of AESIEAP, Law framed the next phase of Asia's energy transition as "resilience as the foundation, collaboration as the bridge," while Financial Secretary Paul Chan said "energy policy, in this sense, is also industrial policy." SP PowerGrid chief executive Jimmy Khoo told the plenary session on intelligent energy transformation that "energy infrastructure and digital infrastructure must be planned together from the beginning.

by read6 min views1 publishedSep 22, 2026
Power, not chips, will decide where Asia’s AI gets built
Image: Scmp (auto-discovered)

- At a Hong Kong meeting of Asia Pacific utility executives, decarbonisation ran into an AI-sized load. The next question is whether the wires keep up.

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Hong Kong is asking for more computing power and for the electricity to stay clean and steady while it arrives.

That was the bind put to regional utility executives on September 15 by Joseph Law, president of AESIEAP and managing director of CLP Power. It also aligned with the city’s first five-year development blueprint and the priorities set out in the Chief Executive’s 2026 Policy Address.

Construction of the Sandy Ridge Data Facility Cluster has already begun. By 2032 it is meant to deliver 180,000 petaflops, about 36 times Hong Kong’s present computing power.

The government’s stated direction for that work is “high efficiency computing power, stable electricity supply, low-carbon transition”. Years of decarbonisation efforts were planned for a different pace of demand growth. The rapid rise of generative AI and data centres is now reshaping assumptions about future electricity demand, creating new challenges for power systems across the region.

Hong Kong’s compact power system

Citing the International Energy Agency’s “Age of Electricity”, Law said electricity demand is growing 50 per cent faster each year than the average of the past decade. It is also growing at least two and a half times as fast as energy demand as a whole.

The change that matters is the kind of load turning up. Geopolitics, extreme weather, electric vehicles and AI-driven data centres are coming together, “in places and at a pace that challenges our planning frameworks”.

His line for the next phase of Asia's energy transition was “resilience as the foundation, collaboration as the bridge”.

“Resilience as the foundation, collaboration as the bridge.”

Joseph Law

President, AESIEAP, and managing director, CLP Power

That emphasis on collaboration echoed a broader message throughout the conference. While AI and data centre demand dominated many discussions, the broader message from Hong Kong was equally clear that the future of energy will be shaped not only by technology, but also by stronger regional cooperation, deeper partnerships and a more connected energy ecosystem.

A connector, if the electrons follow

In his keynote address, Financial Secretary Paul Chan said Hong Kong would play its part as “super connector” and “super value-adder” by deepening collaboration across borders and sectors, making green standards work better across markets and strengthening regional energy co-operation.

“Energy policy, in this sense, is also industrial policy,” he said, adding that access to clean, reliable and affordable power will help decide where firms put money.

Several international delegates noted that Hong Kong's unique position as a bridge between the Chinese Mainland and international markets makes it an ideal venue for regional energy dialogue. Beyond finance and professional services, the city provides a platform where policymakers, utilities, investors and technology innovators can exchange ideas and explore practical solutions to shared challenges facing the region.

Plan the campus with the power station

Energy infrastructure was the key topic of discussion covered by Jimmy Khoo, chief executive officer of SP PowerGrid, during the plenary session on intelligent energy transformation.

AI-driven electricity demand, he said, is growing at a scale and speed the industry has never experienced before. Growth in computing power demand outpaces generation and grid infrastructure.

The old model, in which a developer picks a site before utility infrastructure planning begins, has evolved. “Energy infrastructure and digital infrastructure must be planned together from the beginning.”

“Energy infrastructure and digital infrastructure must be planned together from the beginning.”

Jimmy Khoo

Chief executive officer, SP PowerGrid, SP Group

His message was specific. In order to reduce cost, shorten implementation time and increase flexibility, government agencies, utilities and developers must plan data centre locations, network requirements and generation sources together before land is allocated or development decisions are made.

T.K. Chiang, chief executive of CLP Holdings, kept the local meter reading short.

Sales to data centres in Hong Kong rose nearly 12 per cent in the first half of 2026 and now make up more than 7 per cent of CLP’s local sales. Citing a study by Wood Mackenzie, he said that electricity demand from Chinese data centres could more than triple to 774 terawatt-hours by 2030.

In Hong Kong, this is especially relevant as the Northern Metropolis is being developed into a major innovation and technology hub and a future growth engine. Its success, he said, will depend in part on a power system that is capable of supporting the digital infrastructure and advanced industries that will drive future growth. As the city’s electricity partner, CLP is working to anticipate these emerging needs and ensure the power system is ready to support them.

Wong Kim-yin, chair, Asia, the World Energy Council and group chief executive of Sembcorp Industries, called the new load a “tsunami” that runs into tight grid connections, scarce generation and long waits for kit.

“Our task is to harness intelligence to operate better, and to build the reliable power capacity digital growth requires.”

From CEO Conference 2026 to CEPSI 2027 The conversation is due to continue at Conference of the Electric Power Supply Industry (CEPSI) 2027, AESIEAP’s flagship gathering, which is expected to attract 2,000 delegates from utilities, governments, technology companies, research institutions and industry partners worldwide.

Building on the momentum of the CEO Conference, CEPSI 2027 will provide an even broader platform for the regional energy community to showcase innovation, explore emerging opportunities and deepen collaboration across the Asia-Pacific region.

| AESIEAP and the Hong Kong meeting | | | What it is | • Association of the Electricity Supply Industry of East Asia and the Western Pacific, founded in 1975. • A non-governmental platform for the regional power trade. | | Reach | • More than 67 organisations from 18 countries and regions. | | The Hong Kong meeting | • AESIEAP CEO Conference 2026 ran from September 14-16 at the Grand Hyatt Hong Kong. • Host and president for 2026-27 is CLP Power. Theme is Transforming Energy with Intelligence. • More than 200 leaders attended plenaries, roundtables, business matching and technical visits. | | AESIEAP Ambitions | • Build a more resilient energy future. • Power a new era of smart energy. • Shape an open and collaborative energy ecosystem. | | What’s next | • CEPSI 2027 returns to HK, with 2,000 delegates expected. (from October 31 to November 4, 2027) • HK previously hosted AESIEAP gatherings in 1975, 1977 and 1991. |

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