AI Demand Boosts Thai Digital Sentiment Despite Soaring Energy Costs
Strong AI demand and a weaker baht boosted Q2 digital confidence, though depa warns rising energy and component costs continue to weigh on firms
- Thailand's digital industry sentiment rose significantly in Q2 2026 to 48.4 points, an improvement driven by strong global demand for AI, though the score remains just below the 50-point positive threshold.
- The primary drivers for the improved confidence were a global boom in AI, increased capital expenditure in data centres, and a weaker Thai baht which boosted export competitiveness.
- Despite the positive trend, overall sentiment is being held back by soaring global energy and freight costs, as well as rising prices for semiconductors and electronic components.
- A World Bank assessment reinforces this dynamic, identifying Thailand as a key beneficiary of AI supply chain investment but also warning that high input costs remain a major constraint.
Strong AI demand and a weaker baht boosted Q2 digital confidence, though depa warns rising energy and component costs continue to weigh on firms.
Confidence across Thailand’s digital sector rebounded significantly in the second quarter of 2026, driven by an accelerating global boom in artificial intelligence (AI) demand and a competitive export environment, according to the Digital Economy Promotion Agency (depa).
However, the state agency cautioned that volatile global energy prices and rising semiconductor costs continue to keep overall industry sentiment in negative territory.
Releasing its Q2/2026 survey results on Tuesday (11 August), depa revealed that the overall Digital Industry Sentiment Index rose to 48.4 points, up from 44.5 in the previous quarter.
Although any score below 50 indicates a lack of business confidence, the multi-point gain reflects a widespread recovery across all core metrics, including production volumes, trade performance, project partnerships, and business investment.
Three of the five surveyed sub-sectors crossed back into positive territory during the quarter:
Software: 51.1 (up from Q1)
Digital Service: 50.6
Telecommunications: 50.0
Digital Content: 46.8
Hardware & Smart Devices: 42.9
Dr Supakorn Siddhichai, acting president and CEO of depa, attributed the quarterly rise to expanding capital expenditure in data centres; sustained global demand for electronics and printed circuit boards (PCBs) from key trading partners, including the US and China; and short-term domestic stimulus that helped support consumer spending power.
A weaker Thai baht—which fell to its lowest point in a year during the quarter—further bolstered export competitiveness for local technology vendors.
External Pressures and Cost Headwinds
Despite the positive trajectory, global macroeconomic friction continues to squeeze tech margins.
Depa noted that escalating geopolitical tensions between the US and Iran have driven up crude oil and freight costs, while supply bottlenecks have triggered a rapid surge in raw semiconductor and electronic component prices.
These domestic findings align closely with broader analysis by the World Bank, which identified Thailand as a key regional beneficiary of global tech realignments.
In its 2026 digital economy assessment, the World Bank ranked Thailand fifth among developing nations positioned to capture investment in AI supply chains, semiconductor assembly, and data centre infrastructure.
However, the World Bank similarly warned that high input costs, tight credit conditions, and external trade disruptions remain lingering constraints on broader regional growth.
Entrepreneurs Call for Strategic Infrastructure
To sustain momentum, digital entrepreneurs in Thailand are urging the government to extend tax incentives aimed at retaining high-skilled technical talent and accelerating workforce upskilling.
Business leaders also highlighted the need for direct state support for high-growth consumer segments, such as gaming and digital content, alongside expanded e-commerce access.
Furthermore, industry leaders emphasised the necessity of public investment in shared digital infrastructure and green transition frameworks to lower research and development overheads for domestic firms.
Looking ahead, depa expects the industry to cross back into full growth territory in the third quarter. The three-month forward-looking index is projected to reach 51.6 points, bolstered by anticipated government budget disbursements at the close of the fiscal year and the lagged impact of previous fiscal stimulus measures.
