Thaksin Vows Cheaper Power to Turn Thailand Into Data Center Hub

(Bloomberg) -- Thailand aims to slash electricity costs by more than 25% by next year to emerge as a hub for data centers and artificial intelligence infrastructure, according to Thaksin Shinawatra, the de facto chief of the ruling Pheu Thai Party.

The government headed by his daughter Paetongtarn Shinawatra plans to bring down the electricity tariff to about 8 US cents per unit from about 11 cents now, Thaksin told a business seminar in Bangkok late on Friday. He didn’t elaborate on how the government would slash the rate, which is currently subsidized by state utilities.

Thailand has secured billions of dollars in investment commitments from tech majors including Amazon.com Inc., Alphabet Inc.’s Google, ByteDance Ltd.’s TikTok and Alibaba Group Holding Ltd. to build projects for large data centers and cloud services. Building on that success would depend on the country’s ability to offer clean and cheap energy, Thaksin said.

“We want to be competitive in data centers and AI,” Thaksin said, adding he’s been talking to many people who want to invest in Thailand in these areas. “So we need to have more green energy that’s not too expensive.” 

While Thaksin doesn’t hold any official position in his daughter’s administration, the two-time premier is viewed by many as shaping the government’s major policy initiatives.

Thaksin said Thailand’s ability to slash the electricity cost to 2 to 6 cents per unit — a level seen as ideal by some investors — is limited by its reliance on fossil fuel and natural gas imports for power generation. 

Thailand currently charges 4.15 baht (0.12 cents) per unit of electricity on both commercial and household users. Thaksin said it was possible to bring it down to 2.50 baht step by step.

Thaksin said his dream was to convert an area in Bangkok to house data centers of every country in the world, followed by an AI hub.

The return of a civilian government in 2023 after a decade of military-backed rule saw foreign companies ramp up investment in electric vehicles, advanced electronics manufacturing and diverse tech services. Investment pledges from foreign and domestic companies totaled 1.14 trillion baht ($33 billion) last year, the highest in a decade.

©2025 Bloomberg L.P.