Thailand data center investments face scrutiny over economic value

Samart Rajapolsit, former Deputy Leader of the Democrat Party and former Deputy Governor of Bangkok, has raised questions regarding the massive influx of data center investments in Thailand. While the government views these investments as a way to transform the country into a regional digital hub, Rajapolsit emphasizes the need to evaluate the actual benefits versus the resources consumed.

According to the Board of Investment (BOI), 42 data center projects worth 750 billion baht have applied for investment promotion between 2024 and March 2026. However, Rajapolsit warns that high investment figures do not automatically equate to high domestic economic value, noting that much of the machinery, equipment, and expertise are often imported.

He highlighted that data centers require significant amounts of land, electricity, and water, and may cause local impacts such as noise, heat, and traffic. He argued that Thailand should focus on securing tangible benefits, such as high-skilled job creation for Thais, integration of local companies into the supply chain, technology transfer, and domestic research and development.