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 anticipates its electricity demand to surge at the fastest pace in over nine years, driven by a global boom in artificial intelligence and data centre investment. Electricity consumption is expected to increase by 5.3% in 2026, according to the Energy Policy and Planning Office. Overall energy use is forecasted to rise as well, supported by electronics exports, public investment, and domestic consumption.
Electronics manufacturing is a significant contributor to the surge in power demand, alongside auto production. The sector's expansion is fueled by the electronics sector, which is benefiting from the AI investment boom and global supply chain requirements. Additionally, data centre projects, valued at billions of dollars, are adding to the future electricity demand.
Domestic energy consumption has also risen, with industry accounting for over 40% of total use. Thailand has become a beneficiary of the AI investment surge, attracting technology investment that boosts manufacturing while simultaneously increasing power system requirements. The government has recently halted several data centre projects to develop new regulations covering their electricity and water use, as it reassesses the country's ability to accommodate the technology investment.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
