Thailand Urged to Promote AI Software to Support Data Center Boom
Thailand should develop domestic AI software capabilities to maximize economic benefits from the data center boom, as current infrastructure primarily serves as data storage with limited long-term value creation.
Rujiphand Assarattanakul, assistant managing director of the Kasikornbank Research Center, says Thailand's automotive industry faces a critical turning point, with domestic production declining while imports grow steadily, particularly battery electric vehicles (BEV), which represent 72% of Thailand's total vehicle import value in the first seven months of 2026.
The government is considering measures to push the automotive industry transition toward more environmentally friendly vehicle production, including both BEV and hybrid vehicles, using excise tax mechanisms to incentivize manufacturers to shift from imports to increased domestic component production and create added value in Thailand's economy. However, establishing clear criteria for domestic component value-added and efficient monitoring will be critical factors for long-term success. If implemented as planned, these measures could help reverse Thailand's automotive production decline, with estimates showing a contraction of 1.8% in 2026 potentially reversing to growth in 2027.
Regarding data centers' benefit to the Thai economy, they represent critical infrastructure for future industries, as next-generation businesses will require AI systems and massive data storage. Countries with domestic data centers gain advantages in data security and control, and can reduce communication latency issues. In the context of smart cities and autonomous vehicles, data centers would play a crucial role in connecting traffic signals and vehicle systems.
In the short term, direct economic value is limited since equipment and servers must be imported, leaving Thailand with benefits mainly from construction, water, and electricity costs. For long-term economic gains, Thailand needs a clear plan to develop AI software systems and industry-specific solutions on domestic data center infrastructure, rather than serving only as a data storage facility. Most operators currently concentrate data centers in Bangkok and surrounding areas due to superior cable infrastructure, though the government is now working to clarify regulations and close legal gaps.
Natthaporn Treereatsirikul, vice managing director of the Kasikornbank Research Center, noted that discussions on restructuring excise taxes for the electric vehicle industry aim to create a level playing field and support domestic vehicle manufacturing to advance Thailand's automotive sector.
