Thailand is experiencing a surge in foreign direct investment, particularly in the burgeoning data centre sector. However, a leading economist from CIMB Thai (CIMBT) is calling for a strategic shift, emphasizing the quality and sustainability of these investments over sheer volume. Amonthep Chawla, chief economist at CIMBT, warns that unchecked data centre expansion could strain the nation’s energy, water, and infrastructure resources without proper management.
Prioritizing Value in Data Centre Investment
As Thailand solidifies its position as a key regional hub for data centre development, Mr. Amonthep advises the Board of Investment (BoI) to leverage this opportunity. He suggests moving beyond a sole reliance on tax incentives to attract foreign capital. Instead, the focus should be on attracting projects that deliver substantial economic value to the country.
“The Board of Investment [BoI] should seize the opportunity to prioritise projects that generate greater value for the economy, rather than relying solely on tax incentives to attract foreign investors,” Mr. Amonthep stated. He advocates for the BoI to implement sustainability-focused investment criteria. These could include setting stringent standards for power usage effectiveness (PUE), actively promoting the adoption of renewable energy sources, encouraging water recycling initiatives, and mandating waste heat recovery systems. Furthermore, requiring demonstrable reductions in lifecycle greenhouse gas emissions should be a key consideration.
Maximizing Domestic Economic Benefits
Beyond environmental considerations, Mr. Amonthep highlighted the importance of maximizing the domestic economic impact of data centre investments. This involves fostering stronger connections with local suppliers, encouraging the use of local materials and components, and investing in the development of local engineering and digital talent. Facilitating the transfer of technology and knowledge, alongside supporting domestic research and development (R&D), are also crucial steps.
“If Thailand can strike the right balance between attracting investment, generating economic value and mitigating environmental impacts, the expansion of the data centre industry could become a key pillar of the country’s digital economy and enhance its long-term competitiveness,” he explained. This balanced approach, he believes, will ensure the data centre industry contributes significantly to Thailand’s long-term economic strength and digital transformation.
Thailand’s Data Centre Investment Landscape
The first half of 2026 has seen a remarkable influx of investment applications in Thailand, with figures exceeding 1.47 trillion baht, marking a substantial 37% increase year-on-year. Data centres represent a significant portion of this growth. Between 2024 and May 2026 alone, the BoI has approved investment promotion for 44 data centre projects, collectively valued at an impressive 1.59 trillion baht.
Regional Data Centre Development and Thailand’s Potential
Panida Tangsriwong, head of corporate and investment banking coverage at CIMBT, noted the steady evolution of the data centre industry across Southeast Asia over the past two decades. This growth trajectory began in Singapore and has since expanded to include Malaysia, Thailand, and Indonesia.
“Data centres are more than a standalone industry; they have a multiplier effect by stimulating investment across the supply chain. As this trend continues, data centre development will benefit the regional digital economy,” Ms. Panida commented. She emphasized that data centres act as catalysts, driving investment not just within the sector itself but also across a wide array of supporting industries.
Thailand possesses considerable potential within various segments of the data centre value chain. This includes strengths in areas such as printed circuit board manufacturing, the production of advanced electronic materials, and the fabrication of electrical equipment and power systems. Critical components like transformers, switchgear, uninterruptible power supply (UPS) systems, and high-quality power cables are all areas where Thailand can excel.
Ms. Panida further identified other sectors poised for significant growth, including:
- Cooling systems and energy-efficient solutions
- Specialized construction and engineering services
- Development of industrial estates and other essential infrastructure to support data centre operations
CIMB Group’s Regional Support
CIMB Group, a prominent Malaysia-based regional banking institution, has been actively involved in supporting investors engaged in data centre projects and their associated supply chains throughout the region. Their involvement spans key markets, including Singapore, Malaysia, Thailand, and Indonesia, underscoring the group’s commitment to fostering digital infrastructure development across Southeast Asia.
Conclusion: A Balanced Future for Data Centres
The call for sustainable investment in Thailand’s data centre sector is clear. By prioritizing quality, environmental responsibility, and domestic economic integration, the nation can harness the full potential of this critical industry. A strategic approach that balances investment attraction with value generation and environmental stewardship will be instrumental in establishing data centres as a cornerstone of Thailand’s digital economy and bolstering its global competitiveness for years to come.
