Thaksin Shinawatra Suggests Lowering Electricity Rates to Enhance Thailand's Data Center Sector
The former Prime Minister is promoting reduced energy expenses to boost the country's competitiveness in the digital economy.
Former Thai Prime Minister Thaksin Shinawatra has suggested lowering the nation's electricity tariff from the current 4.15 baht per kilowatt-hour to 3.70 baht per unit.
This initiative aims to reduce living expenses and enhance Thailand's competitiveness in the digital economy.
The private sector has welcomed this proposal, expecting advantages for both businesses and households.
Thaksin's plan resonates with Thailand's increasing attractiveness to data center investors.
The country's data center market is forecasted to expand at a compound annual growth rate of 27% from 2019 to 2026. In July, the Board of Investment approved 37 projects related to data centers and cloud services, amounting to an investment of 98.5 billion baht, primarily in Bangkok, Samut Prakan, Chonburi, and Rayong.
Global tech firms have also shown interest in Thailand's digital infrastructure.
Amazon Web Services intends to invest $5 billion over 15 years to set up a data center in the country.
Moreover, TikTok has pledged $8.8 billion for data centers in Thailand over the coming five years.
Google's $1 billion investment in data centers and cloud infrastructure is projected to generate 14,000 jobs and add $4 billion to Thailand's GDP. These initiatives are part of Thailand's broader strategy to develop its digital economy, with the government targeting a 30% contribution from this sector to the GDP by 2030. The administration is also prioritizing enhanced cybersecurity and promoting artificial intelligence to fortify the agriculture sector and boost exports, especially to China.
Thaksin envisions transforming areas in Bangkok to host data centers from various nations, followed by establishing an artificial intelligence hub.
He acknowledges that achieving a reduction in electricity costs to a range of 0.7 to 2.1 baht per unit—levels favorable to some investors—is difficult due to the dependence on fossil fuels and natural gas imports for power generation.
Nevertheless, he believes that a gradual drop to 2.50 baht per unit is feasible.
The return of a civilian government in 2023, after a decade of military-backed rule, has spurred increased foreign investment in sectors like electric vehicles, advanced electronics manufacturing, and various tech services.
Investment commitments from both foreign and domestic firms reached 1.14 trillion baht last year, marking the highest level in a decade.
This initiative aims to reduce living expenses and enhance Thailand's competitiveness in the digital economy.
The private sector has welcomed this proposal, expecting advantages for both businesses and households.
Thaksin's plan resonates with Thailand's increasing attractiveness to data center investors.
The country's data center market is forecasted to expand at a compound annual growth rate of 27% from 2019 to 2026. In July, the Board of Investment approved 37 projects related to data centers and cloud services, amounting to an investment of 98.5 billion baht, primarily in Bangkok, Samut Prakan, Chonburi, and Rayong.
Global tech firms have also shown interest in Thailand's digital infrastructure.
Amazon Web Services intends to invest $5 billion over 15 years to set up a data center in the country.
Moreover, TikTok has pledged $8.8 billion for data centers in Thailand over the coming five years.
Google's $1 billion investment in data centers and cloud infrastructure is projected to generate 14,000 jobs and add $4 billion to Thailand's GDP. These initiatives are part of Thailand's broader strategy to develop its digital economy, with the government targeting a 30% contribution from this sector to the GDP by 2030. The administration is also prioritizing enhanced cybersecurity and promoting artificial intelligence to fortify the agriculture sector and boost exports, especially to China.
Thaksin envisions transforming areas in Bangkok to host data centers from various nations, followed by establishing an artificial intelligence hub.
He acknowledges that achieving a reduction in electricity costs to a range of 0.7 to 2.1 baht per unit—levels favorable to some investors—is difficult due to the dependence on fossil fuels and natural gas imports for power generation.
Nevertheless, he believes that a gradual drop to 2.50 baht per unit is feasible.
The return of a civilian government in 2023, after a decade of military-backed rule, has spurred increased foreign investment in sectors like electric vehicles, advanced electronics manufacturing, and various tech services.
Investment commitments from both foreign and domestic firms reached 1.14 trillion baht last year, marking the highest level in a decade.
