Blog
Gensets and Its Role in Southeast Asia’s Critical Infrastructure
27 February 2025
The Growing Demand for Power Protection in Southeast Asia
Southeast Asia’s rapid urbanisation and industrial expansion have led to an increasing reliance on stable and uninterrupted power. However, with frequent power disruptions caused by aging grids, extreme weather conditions, and rising energy demands, businesses and critical infrastructure must invest in robust power protection systems. Among the most reliable solutions are generator sets (gensets), which provide essential backup power to ensure operational continuity. Gensets are deployed across various sectors, including healthcare, manufacturing, telecommunications, and data centres, to mitigate the risks associated with power failures. As the region continues to develop, ensuring power reliability has become a priority for both public and private enterprises.
Why Gensets Are Essential in Southeast Asia
Gensets serve as a crucial component of power protection strategies, particularly in industries where power failures can have serious consequences. Their role in ensuring business continuity and operational efficiency cannot be overstated. Here’s why gensets are indispensable in the region:
Frequent Grid Instability
Many parts of Southeast Asia experience voltage fluctuations and unplanned outages, making backup power essential for businesses and institutions. These fluctuations can damage sensitive equipment and disrupt critical operations.
Climate-Driven Disruptions
The region is prone to natural disasters such as typhoons, monsoons, and extreme heat, which increase the risk of power failures. Reliable gensets ensure that essential services remain operational during and after these events.
Industrial and Healthcare Needs
Facilities such as hospitals and manufacturing plants require 24/7 power to maintain operations, safeguard equipment, and ensure safety. In healthcare, uninterrupted power is crucial for life-support systems and emergency response units.
Growing Digital Economy
With the rise of cloud computing and data centres, continuous power is required to prevent downtime and data loss. Gensets serve as a crucial backup, ensuring seamless digital transactions and communication.
Infrastructure Development
Expanding urban areas require stable power for transportation, commercial buildings, and public utilities. Gensets support infrastructure projects by providing temporary or emergency power solutions where grid access is limited.
Industry-Specific Insights: How Southeast Asian Countries Are Driving Demand for Gensets
Data Centres
Malaysia & Indonesia as Emerging Digital Hubs
Malaysia is experiencing rapid growth in its data centre market, driven by significant investments from global tech companies. This growth is partly due to data centre operators seeking alternatives to Singapore, which has imposed a moratorium on new data centres due to space constraints from 2019 to 2022 (Kang, 2024).
For instance, Oracle plans to invest over $6.5 billion to establish its first public cloud region in Malaysia, aiming to help local organisations modernise applications and leverage data analytics and AI locally. This comes alongside billions of dollars’ worth of investments from other tech giants, such as Microsoft, Nvidia, Google, and ByteDance (Azhar, 2024; DCByte, 2024).
Indonesia is also emerging as a key player in the data centre industry, with projections indicating the potential to develop over 500,000 square feet for data centre usage by 2028 (Medina, 2023).
Healthcare
Singapore & Thailand’s Focus on Medical Excellence
Singapore and Thailand are recognised as leading medical hubs in the region (Lee, 2025), with world-class hospitals catering to both local and international patients. These facilities depend on gensets to power critical systems such as life-support machines, emergency rooms, and pharmaceutical refrigeration. Given the stringent requirements of healthcare operations, reliable and well-maintained genset solutions are essential.
Singapore, while previously attracting around 500,000 medical tourists annually (Medina, 2022), is facing challenges in maintaining its market share due to higher treatment costs compared to neighbouring countries like Malaysia and Thailand. For example, bypass surgery in Malaysia averages US$14,000, whereas in Singapore, it costs about US$23,000 (Medina, 2022).
Manufacturing
Vietnam & The Philippines as Rising Industrial Centres
Vietnam and the Philippines (Kennemer, 2024) are seeing a surge in industrial activities, particularly in electronics, automotive, and textile manufacturing (Hanh, 2024; Source of Asia, 2024), as companies adopt a China +1 strategy amidst the US-China geopolitical tensions (Tan, 2024). Many factories operate around the clock, requiring stable energy sources to maintain production efficiency. Power disruptions can lead to equipment malfunctions and financial losses, making gensets a necessary investment for manufacturing firms in these countries.
Infrastructure & Construction
Indonesia & Vietnam’s Rapid Urbanisation
Urbanisation rates in Indonesia (The World Bank Group, n.d.) and Vietnam (The World Bank Group, n.d.; Vietnamplus, 2024) are steadily increasing, with new airports, highways, and smart city developments underway. Many construction sites operate in areas with unreliable grid access, relying on gensets to power heavy machinery, lighting, and operational offices. Temporary and mobile gensets play a key role in keeping these projects on schedule.
Key Considerations When Selecting a Genset
Choosing the right genset involves evaluating multiple factors to ensure optimal performance and efficiency. Businesses should consider:
Diesel vs. Gas Gensets
Diesel gensets remain the preferred choice for critical infrastructure due to their reliability, fuel efficiency, and long runtime. However, gas-powered alternatives are gaining popularity due to lower emissions and increased sustainability, particularly in areas with strict environmental regulations.
Load Requirements
Gensets should be sized correctly to handle peak loads without overloading or underperforming. Incorrect sizing can lead to fuel wastage, increased maintenance costs, and reduced efficiency.
Fuel Efficiency & Cost
Fuel consumption rates impact operational expenses, making efficiency a key consideration. Modern gensets incorporate advanced fuel management systems to optimise performance and reduce costs.
Integration with Existing Systems
Smart genset solutions can be integrated with UPS systems, renewable energy sources, and automated transfer switches for seamless power transitions. Hybrid gensets, combining diesel with solar or battery storage, are becoming a preferred option.
Regulatory
Compliance
Emission standards and noise regulations vary across Southeast Asian countries, necessitating compliance with local requirements. Businesses must ensure their gensets meet national energy policies and environmental guidelines.
Maintenance & Monitoring
Routine maintenance and real-time performance tracking are essential for ensuring gensets remain operational when needed. Many modern gensets come with remote monitoring capabilities, allowing operators to detect faults and schedule proactive maintenance.
Future Trends: Sustainable and Smart Genset Solutions
As Southeast Asia advances its energy strategies, genset technology is evolving to incorporate cleaner fuels, hybrid power solutions, and smart monitoring systems. These advancements ensure that gensets remain a viable and sustainable power protection solution for the region’s evolving energy landscape.
Remote Diagnostics &
IoT Integration
Advanced gensets now include remote diagnostics, real-time performance tracking, and AI-powered predictive maintenance, reducing downtime and optimising operations.
Hybrid Solar-Diesel
Solutions
Many businesses are adopting hybrid solutions that integrate gensets with solar panels and battery storage, reducing dependency on fossil fuels and cutting operational costs.
Hydrogen Fuel & Biofuels
With growing emphasis on decarbonisation, next-generation gensets are integrating hydrogen fuel cells and biofuels to reduce carbon footprints without compromising performance.
Modular & Scalable Systems
Scalable genset solutions are being designed to accommodate growing energy needs, particularly in rapidly expanding urban areas and industrial zones.
Conclusion
Gensets remain a vital part of Southeast Asia’s power protection landscape, ensuring resilience across industries. As businesses face growing energy challenges, investing in the right genset solutions will be crucial for maintaining uptime and operational security.
Power Partners Group is committed to delivering reliable, high-performance power protection solutions tailored to the region’s unique demands. Contact us to learn more about how our genset solutions can support your critical infrastructure needs.
References
Azhar, D. (2024). Oracle to invest $6.5 billion to set up cloud facilities in Malaysia. Retrieved from Reuters: https://www.reuters.com/technology/oracle-invest-65-billion-set-up-cloud-facilities-malaysia-2024-10-02/
DCByte. (2024). DATA CENTER WORLD ASIA 2024 - SOUTHEAST ASIA SPOTLIGHT. Retrieved from DCByte: https://www.dcbyte.com/wp-content/uploads/2024/10/DCWA-DC-Byte-Partnership-Content-3-SEA.pdf?hsCtaAttrib=181676795547
Hanh, V. (2024). An Introduction to Vietnam’s Leading Import and Export Industries. Retrieved from Vietnam Briefing: https://www.vietnam-briefing.com/news/introduction-vietnams-export-import-industries.html/
Kang, W. (2024). South-east Asia emerges as global data centre hot spot as AI usage rises. Retrieved from The Straits Times: https://www.straitstimes.com/business/south-east-asia-emerges-as-global-data-centre-hot-spot-as-ai-usage-rises
Kennemer, J. (2024). What Products Are Made In The Philippines // Philippine Product Manufacturing And Sourcing. Retrieved from Cosmo Sourcing: https://www.cosmosourcing.com/blog/what-products-are-made-in-the-philippines-philippine-product-manufacturing-and-sourcing
Lee, L. (2025). Why Singapore is sitting out the fight for medical tourists in Southeast Asia. Retrieved from The Straits Times: https://www.channelnewsasia.com/today/big-read/medical-tourism-thailand-malaysia-singapore-4862176
Medina, A. (2022). Singapore’s Healthcare Industry: Gateway to ASEAN’s Healthcare Market. Retrieved from ASEAN Briefing: https://www.aseanbriefing.com/news/singapores-healthcare-industry-gateway-to-aseans-healthcare-market/
Medina, A. (2023). Indonesia's Data Centre Industry: Investment Outlook and Regulations. Retrieved from Asean Briefing: https://www.aseanbriefing.com/news/indonesias-data-center-industry-investment-outlook-and-regulations/
Source of Asia. (2024). Manufacturing Industry in Southeast Asia 2024-2025. Retrieved from Source of Asia: https://www.sourceofasia.com/manufacturing-industry-in-southeast-asia-2024-2025/
Tan, A. (2024). Singapore and other major Asean economies see stronger investments amid supply chain shifts. Retrieved from The Straits Times: https://www.straitstimes.com/business/singapore-and-other-major-asean-economies-see-stronger-investments-amid-supply-chain-shifts
The World Bank Group. (n.d.). Urban population (% of total population) - Indonesia. Retrieved from The World Bank Group: https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=ID
The World Bank Group. (n.d.). Urban population (% of total population) - Viet Nam. Retrieved from The World Bank Group: https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=VN
Vietnamplus. (2024). Vietnam’s urbanization ratio to exceed 50% by 2030. Retrieved from Vietnamplus: https://en.vietnamplus.vn/vietnams-urbanization-ratio-to-exceed-50-by-2030-post300562.vnp
