Thailand Data Centers Surge as AI Meets Green Goals

"We're at a critical intersection of AI advancement and sustainability concerns," notes Rich Farrell, Asia-Pacific Regional Director – Digitalization & Data Centre Business at Eaton, who visited Bangkok for the convention. Farrell, a 25-year veteran in technology and sustainability, sees two major forces reshaping the industry. "Everything is driven by artificial intelligence now, which requires massive computing power housed in data centres. Simultaneously, major cloud providers are pushing ambitious sustainability targets – creating a delicate balancing act."  

Efficiency vs Ecology: Data Centers Face Tradeoffs 

This tension between expanding AI capabilities and environmental responsibility comes as Thailand positions itself as a regional data centre hub. The exponential growth in data generation – from everyday mobile apps to sophisticated AI models – is driving demand for more storage capacity, even as operators face mounting pressure to control energy costs and reduce environmental impact. 

The economics of data centre development are becoming increasingly complex, according to Farrell. "Initial costs begin well before construction, with critical decisions around site selection, expansion potential, and connectivity options," he explains. "But power consumption remains one of our biggest challenges – particularly as AI-driven facilities demand unprecedented amounts of energy." 

The industry faces mounting pressure to balance performance with sustainability. Modern data centres must maintain precise environmental conditions, typically operating at 22-24°C, requiring extensive cooling systems that consume substantial power and water resources. "We can't continue building massive data centres that draw enormous power, not just due to costs but also because they divert power from residential and commercial buildings," Farrell notes. 

Industry metrics like Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) have become critical benchmarks. While a PUE of 1.0 represents perfect power utilisation, most facilities aim for 1.3 or lower – though achieving such efficiency often comes at considerable cost. The water usage challenge is equally pressing, as many facilities currently rely on potable water for cooling systems. 

These operational challenges are pushing the industry to explore creative solutions. Some operators are experimenting with higher operating temperatures – up to 35°C – to reduce cooling costs, while others explore alternative construction materials like compressed timber to lower carbon impact. 

Borderless Data: Thailand's Regional Hub Advantage 

Beyond the physical infrastructure considerations, data centre design must account for increasingly complex connectivity requirements. The geographical reach of modern data centres extends far beyond physical boundaries through interconnected "availability zones," Farrell explains. "These zones don't have to be limited to one physical area – that's the beauty of cloud technology. Major providers like AWS operate multiple facilities across Thailand, Indonesia, Malaysia, and Singapore, all working in concert." 

This interconnected infrastructure enables sophisticated data management that most users take for granted. When a Bangkok-based user travels to Singapore, their data initially streams from local servers but is then replicated to Singapore-based facilities to reduce latency. This seamless experience relies on complex networks of subsea cables, satellites, and other connectivity solutions. 

For businesses, however, data centre strategy requires careful consideration of security and regulatory requirements. "Many organisations opt for a hybrid cloud model," says Farrell. "This allows them to maintain sensitive data on-premise while leveraging cloud services for less critical operations." Highly regulated sectors like banking, government, and defence often face strict requirements about data location and storage conditions, sometimes requiring specially secured areas within data centres. 

Thailand's strategic position and favourable market conditions are attracting major global data centre investments, according to Farrell. While neighbouring markets like Singapore face moratoriums on new facilities due to power and land constraints, Thailand offers distinct advantages: affordable power costs, available land, and an impressive 85% internet penetration rate. 

"Major players like AWS, Google, and Microsoft see the same advantages here," notes Farrell. AWS already commands 40% of Thailand's cloud market, while Chinese tech giants like ByteDance are establishing their presence. This dominant market presence reflects growing confidence in Thailand's digital infrastructure capacity. With projected economic growth of 2.6% annually through 2028, Thailand continues to attract private equity backing for data centre projects. 

Skills and Growth: Building Thailand's Tech Workforce 

Government initiatives like Thailand 4.0 and the Cloud First policy signal strong support for the sector. "It's like waving a green flag that says, 'We're open for business,'" Farrell explains. This commitment extends beyond technology to broader economic benefits, including job creation and supply chain development. 

Suppatra Ramasoot, Country Manager at Eaton Electric Thailand, sees this as a pivotal moment. "With large-scale data centres arriving, we're not only attracting investment but also gaining technology transfer from global players. It's essential that these investment plans are executed on schedule to maximise their impact." 

While Thailand's physical and regulatory infrastructure presents compelling opportunities, human capital development remains crucial. The rapid growth of Thailand's data centre sector highlights another critical challenge: the need for skilled workforce development. While Thai workers, particularly younger generations, demonstrate strong adaptability to new technologies, specific technical expertise remains in high demand. 

"We need electrical and mechanical engineers who can handle the physical aspects of data centre operations," explains Farrell. "While many are pursuing fields like data analytics and AI, we still face a shortage in hands-on electrical, mechanical, and design work." This skills gap presents both a challenge and an opportunity for Thailand to develop specialised training programs and build a robust talent pipeline. 

Suppatra Ramasoot emphasises the importance of knowledge transfer: "Engineering teams are very active in transferring expertise from senior professionals to newer employees. With increasing projects and technology transfer from major companies, Thai workers are continuously developing their capabilities to meet market demands." 

For Eaton, success in the Thai market goes beyond immediate sales. "Many clients operate with a regional or global outlook, seeking scalable solutions," notes Farrell. "Long-term partnerships and reliability are crucial, especially in a competitive space where trust makes the difference."