Thailand's Data Centre Boom Faces Power Infrastructure Bottleneck

Power, not land prices, has become the biggest hurdle for data centre investors evaluating Thailand, as growing demand is increasingly constrained by limited electricity and water infrastructure, according to property consultancy Savills Thailand. While the market is dominated by a small number of hyperscale operators requiring extensive infrastructure, inquiries from data centre investors continue to pour in. Most inquiries originate from our overseas offices, including those based in Singapore, Hong Kong, China, and Europe, which have been evaluating Thailand against competing markets such as Indonesia, according to Deputy Managing Director of the consultancy, Prapaporn Chonprapalun. Several Chinese investors are exploring opportunities to develop independent projects, focusing on sites in the Eastern Economic Corridor (EEC), such as Rayong, Chonburi, and Samut Prakan. Meanwhile, Chinese investors are also exploring opportunities to develop independent projects, focusing on sites in the Eastern Economic Corridor (EEC), such as Rayong, Chonburi, and Samut Prakan. Investors prioritize access to reliable electricity, water, and fibre optic networks over infrastructure, Mr Prapaporn said. "They are not particularly sensitive to land prices." In some cases, if the asking price is too low, they question whether the site has hidden issues. Most overseas investors are seeking plots of 50-100 rai with access roads and proximity to power, water, and fibre optics. Electricity remains the biggest obstacle, with many investors requiring power capacity of up to 500 megawatts (MW). Developers often have to queue for electricity allocations, while projects requiring around 150MW are approved in each area due to concerns over local grid capacity. Although data centres prefer sites close to urban communities to reduce network latency, projects located further from residential areas often face fewer electricity constraints. In addition, flood risk is a decisive factor during site selection, with investors conducting extensive due diligence before committing to acquisitions. Ayutthaya continues to raise concerns, as parts of the province are designated as flood retention areas, despite improved flood protection. Other provinces face different challenges. Chachoengsao has limitations in water and electricity availability, while parts of Chonburi have similar utility constraints, despite remaining among investors' preferred locations. The EEC, particularly Chonburi and Rayong, continues to attract the strongest interest due to its established industrial infrastructure. Savills noted that industrial estates generally have an advantage as they already provide fibre optic connectivity, a priority for hyperscale data centres. In Bangkok, data centres are increasingly being considered outside traditional industrial zones, while hyperscale developments are expected to remain outside the capital. Some projects are being planned as high-rise facilities. Savills has had around 10 active inquiries from data centre investors, with 4-5 projects progressing beyond preliminary site surveys. Most of these advanced discussions involve investors headquartered in Europe and China, with Savills expecting some transactions to be concluded in the second half of 2026. Mr Prapaporn said, "Site selection typically takes more than a year, as investors undertake detailed assessments covering transport access, utility capacity, soil conditions, and flood exposure, before making investment decisions."