Tech investment is boosting the country’s manufacturing but straining its power system
THAILAND expects electricity demand to grow at the fastest pace since at least 2018, fuelled by industrial activity including electronics production amid a global boom in artificial intelligence and data centre investment.
Electricity consumption is forecast to increase 5.3 per cent in 2026, the highest growth rate in nine years, according to the Energy Policy and Planning Office.
Overall energy use is also expected to rise, supported by electronics exports, public investment and domestic consumption.
The surge highlights a growing challenge for Thailand as it attracts technology investment that is both boosting manufacturing and placing greater demands on the country’s power system.
Electronics producers are expanding output of components used in global technology and data centre supply chains, while billions of dollars of new data centre projects are creating an additional source of future electricity demand.
Domestic energy consumption rose 6 per cent in the first half, led by industry, which accounted for more than 40 per cent of total use.
Electronics manufacturing was among the biggest contributors to the increase, followed by auto production, according to the Energy Ministry data. Energy use also increased among businesses including retailers, hotels and other tourism-related operators.
Thailand has emerged as a beneficiary of the global AI investment boom as demand rises for electronics used in computing and data centre infrastructure.
The International Monetary Fund has identified the country among Asian economies benefiting from the technology cycle through its electronics exports.
The growing power requirements come as Thailand is reassessing how quickly it can accommodate the technology investment.
The government recently halted dozens of data centre projects while it develops new regulations covering their electricity and water use. BLOOMBERG
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