Power plan for data centres readied

Thailand's energy authorities are accelerating efforts to finalize a pilot direct power purchase agreement (PPA) scheme, designed to fuel the rapid expansion of data centers and cloud service businesses within the country. This initiative is a key component of Thailand's strategy to attract foreign investment in the digital infrastructure sector.

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The Energy Ministry is weighing several critical factors, including setting clear targets for data centres relocating to Thailand and assessing the broader economic and environmental impacts.

An anonymous energy official revealed that while the second phase of the direct PPA scheme is in preparation, critical issues from the initial phase require resolution. The program's core function is to enable private renewable energy producers to sell clean electricity directly to major corporate consumers. This bypasses traditional peer-to-peer trading restrictions by utilizing the state-operated transmission network. The timeline for the initial phase's implementation remains unannounced.

The Energy Ministry is carefully evaluating several factors, including setting concrete targets for data centers relocating to Thailand and assessing the overall economic and environmental consequences. Initially conceived for the Eastern Economic Corridor (EEC) with a 2-gigawatt capacity, the scheme is slated for expansion to other regions, contingent on renewable energy availability and transmission infrastructure. This rollout underscores the government's ambition to secure data center investments before extending similar clean energy access to other industries like electronics and electric vehicles.

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New data centres will bring structures tied to artificial intelligence and digital industries, which will share resources with other industrial sectors.

Data centers are notoriously energy-intensive, requiring substantial electricity and water, particularly for cooling. The official noted that new data centers will integrate artificial intelligence and digital technologies, sharing resources with other industrial sectors. Balancing the investment burden between government transmission infrastructure and private electricity production is crucial, alongside safeguarding long-term energy security and ensuring equitable energy prices. Energy Minister Akanat Promphan highlighted that electricity demand from digital and data centers in the EEC alone is projected to approach 10GW, prompting government prioritization of power supply security. The Finance Minister has also established a panel to support data center investment.

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Demand for electricity from digital and data centres in the EEC alone is projected to reach nearly 10GW.