Thai Companies Seek Opportunities Amidst Soaring AI and Data Center Demand

Leading Thai companies, particularly in the energy, property, and infrastructure sectors, are actively exploring new revenue streams in response to the rapidly growing demand for AI and data centers. These firms are looking to strengthen their competitiveness and diversify their business portfolios by expanding strategic partnerships and making new investments in this burgeoning sector. Asset World Corp PCL (AWC), a major property developer, is extending its long-term strategic partnership with Meliá Hotels International to further develop its luxury hospitality portfolio and enhance Thailand's positioning in higher-value tourism. This move, along with the company's announcement of a substantial REIT size, is seen as an effort to outmaneuver competitors and attract interest from domestic institutional investors. In the energy sector, BCPG, Bangchak Corporation's renewable power arm, is facing inquiries regarding its Phetchaburi oil terminal and jetty investment. Nevertheless, the company continues to operate solar, wind, hydro, and geothermal power assets both domestically and internationally, generating stable cash flows. Meanwhile, B.Grimm Power (BGRIM) aims to supply tens of thousands of megawatts to meet the surging electricity demand from new industries in Thailand, especially data centers, which alone are projected to require 8,800 MW. The company is focusing on securing Power Purchase Agreements (PPAs) with both government and private sector entities and plans to launch a data center in November. In infrastructure, Bangkok Expressway and Metro (BEM) has resumed normal operations on the MRT Blue Line following an electrical short circuit and smoke incident, which is considered a short-lived operational disruption. Furthermore, Electricity Generating PCL (EGCO), a power producer and holding company, is expanding its business by acquiring a 45% stake in a 615 MW gas turbine power plant (NY Astoria Energy II) in the US, capitalizing on the rising demand driven by AI technology and data centers, alongside the ongoing transition to clean energy. Gunkul Engineering (GUNKUL) is advancing its integrated operations in engineering, EPC (Engineering, Procurement, and Construction), renewable energy generation, and power for data centers. The company anticipates opportunities to secure EPC contracts for data centers, estimating investment costs at US$5-6 million per MW (excluding GPUs), with electrical systems and EPC work accounting for 10-15% of the total investment. GUNKUL is positioned to handle up to 500 MW of private-sector data center projects annually with its current workforce and projects an annual data center EPC backlog of Bt691 million for 2027-2028. These developments signal a strategy by leading Thai companies to secure new growth engines as the Thai economy accelerates its transition towards digitalization and sustainability. The explosive demand for data centers, driven by advancements in AI technology, is creating new business opportunities in power supply, property development, and infrastructure.