Ekanat Confirms Data Centers Will Not Impact Household Electricity Supply

Bangkok: Ekanat emphasized that energy is crucial in unlocking a new economic landscape and attracting the data center industry to build confidence and enhance Thailand's competitiveness on the global stage. He affirmed that data centers will not affect household electricity supply and is pushing for the removal of quotas for Direct PPA (Power Purchase Agreement). Meanwhile, a major data center giant proposed the establishment of an industry association to serve as a platform for systematic discussions between the government and private sector.

According to Thai News Agency, at Thailand Focus 2026, a key topic of discussion was the energy transformation, shifting it from a "cost burden" to a "competitive advantage" for the country. This was especially true given the influx of global investment in data centers and AI. Both the public and private sectors agreed that "clean energy" is crucial to propelling Thailand into becoming a regional digital hub.

Energy Minister Ekanat Promphan confirmed that the government has revised measures and regulations to ensure that the influx of data centers will not burden households with increased electricity costs. New investors will be responsible for the marginal costs. Simultaneously, the government is providing more options for investors through direct power purchase agreements (PPA) to promote competition for cheaper clean energy. Furthermore, the government is injecting 200 billion baht to support citizens and SMEs in installing solar rooftop systems with net billing. The government is also accelerating investment in grid modernization, which will allow those with solar rooftops to generate their own electricity and sell any surplus back into the grid, directly reducing their living costs. Finally, the previous 2,000-megawatt quota will be completely abolished to enhance transparency and build investor confidence.

Furthermore, the Ministry of Energy is preparing to launch a new Power Development Plan (PDP) next month. This is a 25-year long-term plan (until 2050) aiming for a Net Zero goal, targeting a 60-90% share of clean energy. This not only aims to ensure energy security but also to create high-skilled jobs, such as AI scientists, and to upgrade Thai education to prepare for a new, Thai-centric economy.

Dr. Harald Link, Chairman of B.Grimm Power, stated that society should not panic about the competition for water resources in data centers, as most operators use air-cooling technology, and Thailand also has technology to extract seawater at a reasonable cost. He also proposed key strategies to boost Thailand's potential, including utilizing domestic supply chains, developing human resources, upgrading the education and vocational systems, collaborating with universities to create engineers and internet entrepreneurs. He expressed confidence in Thai personnel, citing his experience investing across Asia, confirming that Thai professional teams are internationally recognized for their negotiation and collaboration skills.

Mr. Yaniv Ghitis, Chief Commercial and Investment Officer of Digital Edge DC, a data center giant, views investment in AI and data centers as a long-term strategy of 20-30 years. He praised the BOI and the Thai government for facilitating rapid business operations, stating that the company's data center design focuses on minimizing impact on community water resources by utilizing a closed-loop water recycling system and air cooling. Furthermore, the company is ready to support the country's energy transition goals by collaborating with renewable energy project developers and accepting increased costs to avoid burdening household electricity prices. He revealed plans to establish large data center campuses in Chonburi and Rayong, creating significant employment and working with Thai SMEs. Finally, he suggested establishing an Industry Association to provide a systematic platform for public-private sector discussions.