Reflections from Thailand

Will data centers boost solar energy deployment in ASEAN countries?

I recently visited Thailand and loved everything about it, except the power sector 🫢
Thailand generates just 3% of electricity from solar, despite great solar conditions. The vast majority of power comes from coal and gas. Fortunately, data center growth could help change that.

Almost 3 GW of data centers are being planned and constructed across ASEAN countries, as described recently by my Ember colleagues. These data centers will require stable, cheap and clean power. Fossil fuels hit neither of these requirements, and the energy crisis showed how quickly the cost of imported fuels can skyrocket. In fact, Thailand paid 9 billion USD for imported gas just in 2022.

And then there's the rising national power demand, fueling both economic growth and the electrification of transport. Thailand's electricity demand grew 5% in 2024 and 11% the year before.

Considering this, solar seems to have a bright outlook. Under a cost-optimal pathway, as modelled by Ember, solar could increase its share in Thailand's power mix to 28% by 2037. Together with data centers, this would present a huge opportunity for foreign investment.