Thailand’s aspirations to become a leading regional digital and industrial hub are facing a significant resilience challenge. To maintain competitiveness and attract crucial investment, the nation must accelerate its efforts in ensuring reliable energy supplies and advancing decarbonization strategies, according to business leaders and policymakers at the recent Bangkok Business Summit 2026. The overarching message emphasized the need to transition long-term ambitions into practical investments while securing affordable and reliable energy.
Securing Clean Power for Future Growth
The advancement of technology, particularly in artificial intelligence (AI) and the digital economy, is critical for Thailand’s future growth. However, these burgeoning industries, alongside existing ones, require a stable and secure energy infrastructure. The government is actively collaborating with ministries to support the increasing demand for electricity, driven by data centers and industrial expansion. Ensuring a continuous, clean electricity supply while maintaining energy security and affordability is paramount.
One potential solution identified for meeting data center demands and providing a stable, secure, and clean energy supply 24/7 is the use of Small Modular Reactors (SMRs). These reactors could answer all the energy questions, according to Mr. Prasert Sinsukprasert, Permanent Secretary for Energy. Thailand plans to develop its first 300-megawatt SMR unit within the next decade, contingent on sufficient human resources, appropriate regulation, and public support.
The eventual scale of SMR development in Thailand hinges on how quickly advanced technologies and AI are adopted. Thailand is well-positioned to capture the investment wave, owing to its combination of power, land, policy, and domestic consumption. Mr. Karnrawat Chutintaranond, Vice President-APAC for Google, noted that data centers should increasingly be viewed as critical national infrastructure, rather than just facilities serving technology companies.
“The choice is very simple: Do you build it yourself, or do you depend on someone else for this critical asset?” Mr. Karnrawat stated. He advised that governments and businesses should adopt an AI-first approach to maximize the economic benefits of new digital infrastructure. Thailand requires a clear and consistent policy framework, faster execution, and stronger domestic demand. Businesses are ready to invest in both data centers and the necessary power infrastructure, provided they receive proper support from the government through stable policies.
Energy Advantage
The energy transition necessitates combining existing energy sources with technologies that reduce emissions. While conventional fuels will remain essential during this transition, they must be coupled with decarbonization methods. Mr. Krongkarn Phornprapha, President and Chief Executive Officer of PTT Global Public Company Limited (GC), highlighted that Thailand needs to expand renewable energy, batteries, and energy storage. Carbon Capture and Storage (CCS) is particularly important, as industries still rely on conventional fuels. He added that Thailand’s energy infrastructure and technical expertise, coupled with investment in facilities, can give the country an advantage in maintaining stable and affordable clean energy.
To remain competitive, Thailand must accelerate its energy infrastructure development, including exploration in the Gulf of Thailand. A central agency is needed to coordinate regulations and other measures, providing investors with greater certainty. Mr. Somsak Limlom, Chief Strategy Officer of Gulf Energy Development Public Company Limited, stated that Gulf Energy is prepared to invest not only in data centers but also in the power facilities required for them, provided there is proper government support and stable policies. Under a new power development plan, developers could be allowed to build captive power plants and supply renewable electricity directly to data centers through Direct Power Purchase Agreements (DPPAs).
Reducing Carbon Emissions
Climate change has shifted from being an environmental issue to a direct economic concern for Thailand. Ms. Purichan Srisayai, Director-General of the Department of Environmental Quality Promotion and Climate Change, emphasized that adaptation is necessary to protect current economic output, while mitigation is essential for preserving Thailand’s future competitiveness and attracting investment. Thailand has moved its net-zero target forward from 2050 to between 2040 and 2050 and submitted its third Nationally Determined Contribution (NDC), targeting a 40% absolute emissions reduction by 2035.
Achieving this target will require approximately 2 trillion baht in investment, combining private sector mobilization, government spending, and international climate finance. Thailand is developing a Climate Change Act to provide a whole-of-economy framework for adaptation and decarbonization, including carbon pricing mechanisms and climate finance. Heavy industry must undergo decarbonization without undermining competitiveness, according to Mr. Thammachat Thammachart, President and CEO of Siam Cement Group (SCG). SCG has focused on low-carbon cement technologies, with over 80% of its cement sales in Thailand using low-carbon products.
However, technology alone is insufficient, as new products require broader industrial adoption and regulatory approval. SCG is working with regulators and industry associations to move low-carbon cement beyond individual companies into the wider market. Mr. Thammachat also noted the potential competitive advantage for Thailand if biomass is sourced through communities around cement plants. He added that the company is working with industry associations and regulators to move low-carbon cement beyond individual companies into the wider market.
Financing Execution
Translating climate ambitions into action is essential for attracting foreign investment and maintaining competitiveness. Mr. Rathanaporn Nakaratanapong, Executive Vice President for Corporate Sustainability at TTP, stated that they are developing the Eastern Thailand SCC Hub, with a planned capacity of at least 5 million tons of carbon dioxide capture and storage. This initiative involves examining potential storage sites while integrating low-carbon energy. TTP is using an area-based model called PARCS (Power Area Circularity System) to integrate low-carbon energy, shared infrastructure, and circular economy industries around its bio-based industrial estates in Map Ta Phut.
The project aims to demonstrate how decarbonization and employment can be pursued together into a functioning regional system. Mr. Chai Isarangkul Na Ayuthaya, Chief Executive Officer of Thai Airways International Public Company Limited (THAI), noted that sustainable aviation fuel (SAF) will be crucial for the industry to meet its 2050 targets. THAI is proposing mandatory FAS (Fuel Aviation Standard) requirements in Thailand, starting with a small percentage annually, increasing over time. This is necessary because airlines must protect financial returns for their shareholders.
Mr. Mark Forino, a lead urban resilience specialist at the World Bank, commented that financing is not necessarily the main constraint. Small, numerous investments can be aggregated into larger opportunities. Governments and cities have historically faced difficulties in borrowing and signing long-term contracts. Thailand needs to address contract aggregation, procurement, and investment consolidation to unlock larger opportunities.
Regional Opportunity
Thailand has an opportunity to strengthen its position as a regional carbon market by building on its domestic carbon credit standards. Mr. Rathanaporn stated, “The feasibility of projects like the Eastern Thailand SCC Hub can be improved, and demand can be created for Thai credits through close integration with Singapore’s carbon market.” He added that this could lead to greater cross-border recognition and pursue broader cross-ASEAN recognition.
Meanwhile, Mr. Thammachat called for deepening regional energy integration, including cooperation on advanced grid and clean technologies. He suggested that Thailand’s carbon market experience could provide a model for wider ASEAN cooperation. Ultimately, Thailand’s resilience depends on connecting its industrial capabilities, infrastructure, finance, and climate and energy ambitions into a functioning regional system, creating jobs, investment, and long-term competitiveness.
