Thailand's 2.87GW Data Centre Ambition Hinges on Power Grid Overhaul, Expert Warns

 

 

The kingdom has attracted billions in hyperscale investment, but closing the "megawatt gap" between power generation and delivery will be critical to its success.

 

Thailand has emerged as one of Southeast Asia's leading data centre destinations, drawing billions of baht in investment from American, Chinese and Japanese technology giants — but an expert has warned that the country's ability to capitalise on this momentum depends on urgently resolving deep-rooted energy infrastructure constraints.

 

Jerin Raj, senior vice president and managing director at engineering firm Black & Veatch, said Thailand's planned data centre pipeline now stands at roughly 2.87 gigawatts — a figure that, if fully realised, would place it among the region's largest emerging markets.

 

In 2025 alone, the country's Board of Investment approved 36 data centre projects worth approximately 728 billion baht, with a further seven projects valued at over 96 billion baht approved in January this year.

 

 

 

Yet Raj cautioned that capital commitments alone will not secure Thailand's position in the global race for hyperscale infrastructure.

 

"The real challenge lies between generation sources and end-use demands," he said, describing the problem as a "megawatt gap" that must be closed before the country can fully capitalise on investor interest.
 

 

 

 

 

Grid infrastructure under strain

 

Thailand enters this period of rapid digital expansion with a power reserve margin exceeding 25 per cent, meaning generation capacity is not the primary concern.

 

The challenge, Raj argued, is delivery — moving power reliably to where it is needed, at the scale and consistency that modern artificial intelligence workloads demand.

 

Data centre development has been heavily concentrated in the Eastern Economic Corridor (EEC), spanning the provinces of Chonburi, Rayong and Chachoengsao. Of the 36 projects approved in 2025, Rayong accounted for 33 per cent and Chonburi 32 per cent.

 

The energy infrastructure serving this corridor, however, was designed for conventional industrial loads and is ill-suited to the sudden, concentrated power demands of hyperscale campuses.

 

The Electricity Generating Authority of Thailand (EGAT) has responded with a 31-billion-baht investment roadmap to upgrade transmission capacity across the EEC, with significant expansion at critical hubs expected in the coming years.

 

 

 

Balancing clean energy with reliability

Thailand is simultaneously pursuing an ambitious energy transition, targeting a 51 per cent renewable share in its generation mix.

 

Raj said this creates an additional layer of complexity, as the grid must now accommodate both growing variable renewable capacity and the always-on, high-density demands of data centres.

 

 

 

 

 

He argued that no single energy source can resolve the tension between clean, reliable and competitively priced power.

 

Fast-ramping combined-cycle gas plants provide dispatchable capacity to stabilise the grid when solar and wind output fluctuates, while battery energy storage is becoming increasingly critical to smoothing variability.

 

Raj noted, however, that Thailand has recently paused the development of some gas-fired capacity.

 

On the policy front, a new Direct Power Purchase Agreement (DPPA) framework now allows data centres to contract directly with renewable energy producers — a development Raj described as a prerequisite for global operators under pressure to meet sustainability mandates.

 

 

 

Lessons from the United States

Raj pointed to the United States as an instructive example, noting that developers who engaged earlier with engineering firms and utilities to forecast load requirements and identify optimal sites achieved markedly better outcomes, both in terms of delivery timelines and cost management.

 

"The policy environment is consistent and the strategic intent is clear," Raj said. "What determines whether the country captures this moment is execution and a willingness to draw on lessons from markets that have already lived through rapid data centre growth."
 

 

He added that flexibility — achieved through the integrated design of transmission, generation, storage and procurement mechanisms — was the critical factor separating successful markets from those that fell short of their potential.