Thailand accelerates data center expansion with green energy transformation

Thailand accelerates data center expansion with green energy transformation

Siemens, along with Krungthep Turakij, hosted the "Siemens data Center Conference 2025: Redefining Data Center Infrastructure" on June 5th, 2025, to shed light on the latest trends in the data center realm. Ross Conlon, President and CEO of Siemens Thailand, kickstarted the event with his opening remarks.

🔋 Sustainable and Clean Energy for Thailands Data Center Growth

Addressing the topic, "Empowering Sustainable Data Centre Growth through Thailands Clean Energy Policy," Sarat Prakobchat, Deputy Director of the Energy Policy and Planning Office (EPPO), underlined the significant energy demands of data centers, reporting that global data centers consumed 415 TWh of electricity (1.5% of global power usage) in 2024. Projections show that consumption will nearly double to 945 TWh (3% of global use) by 2030.

The Thai government aims to foster the data center sector as a future industry, with the data center industry expected to grow annually at 7.5%-8.5% from 2025-2027 due to the expanding digital economy. Sarat highlighted the impact of government measures, such as the BOI's investment incentives, which align better with national strategies for digital prosperity.

Thailands Power Development Plan (PDP) Strategy

Thailands Ministry of Energy has revised the PDP with three main objectives:

1. Energy security - ensuring consistent power availability
2. Environmental sustainability - targeting 50% renewable energy by 2037 and a 30-40% cut in power sector carbon emissions
3. Cost competitiveness - keeping retail power prices below 4 baht per unit

Additionally, the PDP encourages a 2.99% average annual economic growth from 2025 to 2037 and introduces targets for clean technologies, such as hydrogen (5% energy use by 2030), Small Modular Reactors (SMRs), demand response measures, and smart grid development.

The government supports the data center ecosystem through several initiatives, including a smart grid policy, clean electricity procurement policies, and Direct PPA pilot projects. to ensure energy policy aligns with business and consumer needs.

Challenges in the Booming Data Center Industry

Samir Borkar, Senior Vice President and Head of the Regional Data Center Business at Siemens, commented on the rise in Thailand's data center industry. According to Siemens' research, proposals for projects have escalated exponentially, moving beyond traditional 12-20 MW bids towards 100 MW behemoths.

Samir also pointed out that hyper-scalers and AI workloads introduce operational challenges, highlighting the need for early collaboration on design and management strategies.

🚑 Addressing Fire Risks in Data Centers

Suwong Ratchawong, Fire Detection Technical Expert at Siemens ASEAN, emphasized the essential role of adhering to international safety standards, primarily those from the National Fire Protection Association (NFPA), to minimize fire risks in data centers and protect staff's lives.

Rapid Growth in Thailand's Data Center Sector

Saneh Pienrattanakul, Head of Operations at True IDC, acknowledged the rapidly growing demand for large-scale data centers and AI-focused clients. To ensure efficient service, partnerships across every operation function are vital.

Jodi Pieterse, Director at WT Partnership, added that while the rising cost per megawatt remains a challenge, precise design decisions, structure planning, and cost-control techniques can help manage costs and ensure long-term growth.

🚀 AI and 5G Drive Foreign Investment in Thailand Data Centers

Researcher Rapeepoom Lapmak from Krungsri Research shared his insights on the industry outlook, noting an increase in foreign direct investment in Thailand's data center sector. Key players like Amazon Web Services, Google, and Microsoft have invested over 240 billion baht collectively into Thailand, with more investments in the pipeline.

In 2025 alone, investments totaled over 94 billion baht as regional powerhouses like TikTok and SIAM AI Cloud entered the market.

Triple Drivers of Thailands Data Center Growth

Thailands data center industry is expected to witness a 7.5%-8.5% annual growth from 2025 to 2027 due to three significant factors:

1. Rising Internet and Digital Payment Usage: Thailand's e-payment transactions totaled 4.9 trillion baht in 2024, projected to reach 8.7 trillion baht by 2030.
2. Widespread Cloud Adoption: Thailand's cloud industry revenue is on track to hit 80 billion baht in 2025, doubling annually thereafter.
3. AI Integration Across Sectors: Thailand ranks high in AI adoption, with 17.8% of organizations using AI.

Thailands Economic Outlook

appreciation, reflecting the country's increasing importance in Asia's digital landscape.

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1. The environment plays a crucial role in the sustainable growth of the data center industry, considering the significant energy demands.
2. Businesses should embrace clean energy policies to empower sustainable data center growth.
3. The Thai government aims to make the data center sector a future industry, targeting an annual growth rate of 7.5%-8.5% from 2025-2027.
4. Energy security, environmental sustainability, and cost competitiveness are the three main objectives of Thailand's Power Development Plan (PDP).
5. The revised PDP encourages a 2.99% average annual economic growth from 2025 to 2037 and introduces targets for clean technologies.
6. Government measures, such as the BOI's investment incentives, support the growth of the data center ecosystem.
7. Samir Borkar commented on the rise in Thailand's data center industry, highlighting the shift from traditional 12-20 MW bids to 100 MW projects.
8. Hyper-scalers and AI workloads introduce operational challenges, requiring collaboration on design and management strategies.
9. Adhering to international safety standards, like those from the National Fire Protection Association (NFPA), is essential to minimize fire risks in data centers.
10. Saneh Pienrattanakul acknowledges the growing demand for large-scale data centers and AI-focused clients, emphasizing the importance of partnerships.
11. Jodi Pieterse added that managing costs and ensuring long-term growth requires precise design decisions, structure planning, and cost-control techniques.
12. Foreign direct investment in Thailand's data center sector has increased, with key players investing over 240 billion baht collectively.
13. The data center industry is expected to grow due to rising internet and digital payment usage, widespread cloud adoption, and AI integration across sectors.
14. Thailand ranks high in AI adoption, with 17.8% of organizations using AI.
15. The booming data center industry in Thailand reflects the country's increasing importance in Asia's digital landscape.
16. Sustainable living involves choosing a lifestyle that minimizes harm to the environment and supports the efficient use of resources.
17. A greener business model can lead to reduced costs and greater financial independence, thus contributing to wealth management and investing practices.
18. The housing market benefits from investments in energy-efficient infrastructure, particularly in home insulation, solar panel installations, and green technologies.
19. Renewable energy, such as solar and wind power, plays a vital role in reducing carbon emissions and achieving energy independence.
20. The global fashion industry contributes significantly to pollution and waste, emphasizing the need for sustainable choices in the fashion-and-beauty sector.
21. Consumers are becoming more conscious of the environmental impact of their food choices, pushing the food-and-drink industry towards sustainable and local practices.
22. Investing in renewable energy not only presents economic opportunities but also promotes environmental responsibility in the industry.
23. Wealth management strategies should include investing in companies that prioritize sustainability and renewable energy adoption.
24. Financial institutions and investors are increasingly recognizing the importance of sustainable and clean energy in their investment decisions.
25. Adopting renewable energy sources can lead to energy cost savings and increased productivity, benefiting both businesses and households.
26. Electric vehicles (EVs) are rapidly gaining popularity, offering numerous benefits such as reduced carbon emissions, energy savings, and improved performance.
27. Career development in the renewable energy industry is on the rise, presenting numerous job opportunities in sectors like solar, wind, and energy efficiency.
28. Job-seekers can invest in education and self-development to acquire skills relevant to the renewable energy sector, driving career growth in this area.
29. Skills training and lifelong learning are essential for staying competitive in the job market and adapting to new industry trends, such as data and cloud computing, AI, and renewable energy.

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