Thailand’s labour crisis and the refugees building its AI future

A recent Nikkei Asia report highlighted a striking image of Myanmar refugees working on a data centre construction site in Chonburi, eastern Thailand. These refugees, who spent years in border camps without legal work rights, are now contributing to the construction of AI training and server hall facilities. This story goes beyond human resources; it raises questions about the region's startup ecosystem and whether it is building for the actual economy or the one it markets.

The labour shortage in Thailand was triggered by the deadly Thailand-Cambodia border conflict in July 2025. Hundreds of thousands of Cambodian workers returned home, leaving behind a significant gap in construction, farming, and fisheries. Thailand's economy heavily relies on workers from neighboring countries, with Myanmar nationals comprising nearly 2.27 million of the 3.14 million legal workers. The country's ageing population and low birth rate further exacerbate the labour shortage.

In response, Thailand has taken several measures, including holding onto Myanmar workers already in the country, initiating a pilot scheme for Sri Lankans, and opening refugee camps to work legally outside. This historic move came as US aid cuts forced organizations like The Border Consortium to halt most assistance, leaving over 100,000 camp residents without food and healthcare.

However, only about one in six eligible refugees have joined the labour force, as many face poor working conditions, lack of contracts, and debt from recruitment fees.

The tech industry's solution to labour shortages is automation, but experts warn that physical AI applications will not be implemented in the near future. These jobs are mostly found in longan farms, fishing boats, and on scaffolding, which are messy, unstructured environments run by small businesses with thin margins. Automation's assumption is that these workers are a temporary inconvenience that can be engineered away.

However, Thailand has over 3 million documented migrant workers and a significant undocumented population, making them an essential part of the economy rather than a temporary issue.

The report argues that the better approach is to formalise these workers rather than replacing them with technology. This includes issuing non-citizen Thai ID cards, creating e-KYC systems tailored for refugees, fixing debt issues through digital contracts, and improving remittance channels. By focusing on formalising these workers, Thailand can create a more stable and inclusive economy while addressing the labour shortage effectively.