Thailand’s digital dreams could stall as investors warn the nation’s patchy clean energy supply risks scaring off billion-baht data centre projects.
Thailand risks losing out on major digital economy investments unless it strengthens its clean energy supply, according to Gunkul Engineering, a leading renewable energy developer.
Chief executive Naruechon Dhumrongpiyawut said that data centres, artificial intelligence firms, electric vehicles, and smart electronics were vital to Thailand’s digital future. However, without sufficient renewable energy, the country could struggle to attract foreign investors and meet its carbon reduction commitments.
Thailand’s current Power Development Plan (PDP) outlines an increase in renewable energy from 22% of total supply in 2024 to 51% by 2037. But progress has stalled. Although the plan passed a public hearing last year, the National Energy Policy Council (NEPC) has yet to approve it following objections from energy analysts.
Photo courtesy of Bangkok Post
Naruechon argued the targets were insufficient.
“The 51% renewable power proportion is too low.”
She said that global tech companies demand higher clean energy guarantees before committing to new projects in Thailand.
Foreign data centre operators have expanded rapidly across Southeast Asia since 2022, with renewable energy supply emerging as a decisive factor for investment. Investors want reassurance that Thailand can power their operations sustainably.
While the NEPC, chaired by former Prime Minister Srettha Thavisin, approved a pilot direct power purchase agreement (PPA) last year to boost renewable power, implementation has been slow. Direct PPAs would allow data centres and other heavy users to buy electricity directly from producers, bypassing traditional channels.
Peer-to-peer renewable power trade remains prohibited, further complicating investment conditions.
Naruechon suggested the previous government showed little urgency.
“It seems to me the outgoing government was not enthusiastic about facilitating the supply of clean energy to data centres.”
Analysts warn that without faster progress, Thailand risks being overtaken by regional rivals better prepared to meet the clean power needs of foreign tech giants, reported Bangkok Post.
For Thailand’s ambition to become a regional digital hub, bridging the gap between energy policy and investor expectations may prove decisive.
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