Thailand Targets Eastern Data Center Hub With New Power Policy
Thailand is developing the Eastern Economic Corridor as a data center hub with a "new cake" power policy that generates dedicated electricity supply rather than draining the public grid, targeting the Rayong-Chachoengsao region with underse
The Eastern Economic Corridor (EEC) is pressing ahead with data center investment attraction, championing a "new cake" policy that avoids taking electricity from the public supply. The initiative targets the Rayong-Chachoengsao zoning area to receive major undersea cable networks.
EEC Secretary-General Chula Sukmanop outlined infrastructure management approaches to draw data center investment, emphasizing readiness in clean energy and optimal land allocation, while accelerating clear policy frameworks to compete with neighboring nations.
Under the "new cake" strategy to prevent energy crisis, the electricity management concept will not divert new data center demand from existing public consumption. Instead, it will "create new supply" — generating additional power specifically for these investors. Thailand previously attracted interest due to 30 percent excess electricity capacity, but rising demand has eroded this cushion, potentially alarming investors about sufficiency.
The EEC plans to position this region as a higher-proportion clean energy zone than elsewhere in Thailand to serve global investors, potentially requiring data center operators to participate in power generation investment or partner with clean energy providers.
Electricity demand for data centers in the area currently stands at approximately 220 megawatts, with figures rising weekly. This growth is accommodated in the new Power Development Plan.
Chula warned that policy clarity is urgent; without it this year, investors may relocate to other countries, since electricity cost is a critical factor. If rates spike too high — such as nine baht per unit — investors will not choose Thailand.
The EEC has identified Ban Chang District in Rayong and the Rayong-Chachoengsao junction as strategically ready zones. Ban Chang sits on high-voltage transmission lines supporting massive power demand, while the junction connects major undersea cables essential for high-speed data communication at 1/100-second latency.
Regarding water resources needed for cooling systems, new technology has reduced consumption through closed-loop circulation similar to car radiators, making water scarcity less of a barrier than energy concerns.
The EEC confirmed readiness to serve as a data center destination but stressed that success depends on clear central policy, especially clean energy standards and oversight by the government-led policy committee, enabling Thailand to seize this opportunity for sustainable industrial development.
