Thailand power demand growth set for nine-year high on AI boom

Thailand's Energy Policy and Planning Office forecasts electricity consumption will rise 5.3 percent in 2026, the fastest growth in nine years, driven by electronics manufacturing and data centre investment tied to the global AI boom. Domestic energy consumption already climbed 6 percent in the first half, with industry accounting for more than 40 percent of total use, and the government recently halted dozens of data centre projects while drafting regulations on their electricity and water use. The International Monetary Fund has identified Thailand among Asian economies benefiting from the technology cycle through electronics exports.

Thailand power demand growth set for nine-year high on AI boom 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 https://www.businesstimes.com.sg/international/asean/thai-data-centre-capacity-may-triple-surging-demand-ai . 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 https://www.businesstimes.com.sg/international/asean/thailand-approves-958-billion-baht-investment-projects-including-tiktok 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 https://www.businesstimes.com.sg/international/asean/thailand-puts-49-data-centres-hold-over-resource-strain-community-impact while it develops new regulations covering their electricity and water use. BLOOMBERG Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services