Thailand’s PM courts tech giants for digital sector investment

Prime Minister Srettha Thavisin has been courting major corporations in a bid to bolster foreign direct investment (FDI) in Thailand’s digital and high-tech sectors. This comes after the initial deals struck for tech investment under the previous administration.

During his recent visit to the US, the 61 year old Thai PM engaged with several technology behemoths, imploring them to consider Thailand as a viable production base. His talks with electric vehicle (EV) manufacturer Tesla centred around possible investment opportunities.

This initiative echoes the Digital Economy and Society Ministry’s Go Cloud First policy that aims to attract FDI from foreign cloud and data centre providers.

PM Srettha’s administration has already secured strategic partnerships with Google and Microsoft, focusing on enhancing Thailand’s digital competitiveness and pushing AI innovation. Microsoft has also committed to trying to achieve 100% renewable energy usage for its prospective investments in the country. Amazon Web Services Thailand has expressed plans to invest US$5 billion (175 billion baht) over the next 15 years.

According to government spokesman Chai Wacharonke, the proposed utility green tariff is a key factor in attracting tech companies. Microsoft Thailand’s managing director, Dhanawat Suthumpun, revealed plans to establish an AI Centre of Excellence and develop its cloud data centre region. However, he emphasised the need for government support in renewable energy resources for such data centres and the restructuring of state procurement rules to accommodate long-term cloud usage.

ST Telemedia Global Data Centres (Thailand) CEO, Supparat Sivapetchranat Singhara na Ayutthaya, believes Thailand could become a strategic regional hub for data centres, predicting an investment value of 200 billion baht and a capacity of 500 megawatts within five years. He suggested the Electricity Generating Authority of Thailand consider selling electricity directly to data centre operators as their demand is projected to rise to 500MW.

Clean energy

The utility green tariff, set to be implemented in January next year, is likely to attract foreign investors, regardless of cost, according to an anonymous source at the Energy Ministry. The tariff, part of the second phase of the state renewable energy scheme, will determine the price of power bills for factory owners needing clean energy to achieve carbon neutrality.

Despite Thailand’s abundant renewable resources, the Federation of Thai Industries (FTI) warns that high renewable energy prices could deter potential investors. The FTI Chairman, Kriengkrai Thiennukul, suggests that fair and appropriate prices should be established for clean power trade, similar to those in other countries.

An anonymous EV policymaker stated that enticing Tesla to establish an EV production base in Thailand wouldn’t be easy given Tesla’s sufficient production capacity in China. The domestic production volume in Thailand has not yet reached a level that would justify a factory setup.

Thai Chamber of Commerce chairman, Sanan Angubolkul, noted that while the private sector is keen on the government’s policy of attracting FDI in tech-related industries, Thailand needs to increase its skilled personnel in modern technology. He also stressed the importance of offering suitable incentives to attract skilled foreign workers.