The former Prime Minister of Thailand, Thaksin Shinawatra, suggests expanding solar energy to lower electricity prices. (Photo: Thaksin Shinawatra's Instagram)
To attract investment from high-tech industries such as data centers, the de facto leader of Thailand’s ruling Pheu Thai Party and former Prime Minister Thaksin Shinawatra announced that the government will increase the use of renewable energy sources like solar power.
They also plan to lower electricity prices to 2.5 baht per kWh (about 0.074 USD), making energy costs more competitive while meeting economic development and carbon reduction goals.
Thaksin targets solar expansion to lower power costs
Thailand's electricity prices are currently high, with rates for both commercial and residential users at 4.15 baht per kWh (about 0.12 USD). Speaking at a business forum in Bangkok on March 14, Thaksin stated that the government would gradually reduce electricity prices, potentially bringing them down to 2.5 baht per kWh by next year, a reduction of nearly 40%.
Thaksin pointed out that energy costs are a major barrier to attracting investment in key areas such as data centers, artificial intelligence, and cloud system development. He emphasized that controlling electricity prices below 2.5 baht per kWh is a reasonable and achievable goal. “We must develop a solid plan to reduce energy production costs; otherwise, we simply cannot compete,” he said.
Currently, Thailand relies heavily on fossil fuels for electricity generation and is highly dependent on imported natural gas, putting upward pressure on electricity prices. Thaksin mentioned that in the future, renewable energy use, particularly solar power, would be expanded, and the price of electricity could even fall to below 1 baht per kWh (about 0.03 USD), although he did not elaborate on how low-carbon energy would reduce electricity prices.
Regarding the feasibility of nuclear power in Thailand, Thaksin believes that nuclear energy investment costs are high and would offer limited benefits to current electricity consumption.
Thaksin pointed out that Thailand's electricity price could drop below 2.5 baht per kWh to attract more data center investments. (Image source: iStock)
Thailand’s data centers set to attract billions in 2030
Thaksin is the father of current Prime Minister Paetongtarn Shinawatra. Although he does not hold a senior cabinet position, he is still seen as having considerable influence over government policy. In his speech, Thaksin shared his vision of turning Bangkok into a hub for global data centers and an artificial intelligence center.
So far, major tech companies, including Amazon, Google, TikTok, and Alibaba, have committed to building large data centers and executing cloud service projects in Thailand, with total investment amounting to billions of dollars.
According to market research company Research And Markets, the value of Thailand's data center industry is expected to reach 1.56 billion USD in 2024, and it is projected to grow to 3.19 billion USD by 2030, with a compound annual growth rate of 12.66%.
The report mentioned that the construction cost of data centers in Thailand is around 8 million to 9 million USD per megawatt, which is lower than in countries like Singapore, Indonesia, and Malaysia, leading to optimism about substantial growth in Thailand’s data center sector.
Market research company Research And Markets estimates that Thailand's data center industry value will grow to $3.19 billion by 2030. (Chart: Research And Markets)
Source: Bloomberg, The Nation, Research and Markets
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