Thailand electricity demand set for nine-year high amid AI boom

Thailand is projected to experience its fastest electricity demand growth since at least 2018, with a forecast increase of 5.3 per cent in 2026. This surge is driven by a global boom in artificial intelligence, increased data center investments, and expanding electronics manufacturing. The Energy Policy and Planning Office notes that industrial activity, particularly in electronics and automotive production, is a primary driver of this consumption.

Across Southeast Asia, electricity demand is rising significantly due to industrial expansion and urbanization. Indonesia leads the region with an annual demand of 372.5 TWh, largely fueled by rapid industrial development and energy-intensive mineral processing. Vietnam follows with 314.2 TWh, having become a major manufacturing hub for electronics and machinery.

As technology investments grow, regional governments face challenges in managing power systems. In Thailand, the government has recently halted several data center projects to develop new regulations regarding electricity and water usage to accommodate the influx of technology investment.