Energy key to push for digital hub plan

Big resource questions ahead in AI era, says Bangchak’s CEO

The state’s ambitious goal to make Thailand a digital economic hub in Southeast Asia, driven by the growth of domestic data centre and cloud service businesses, may be achieved at the cost of huge resources.

These facilities are crucial for artificial intelligence (AI), which is playing a bigger role in a variety of jobs from optimising production plans for factories to driving sales for retail businesses.

The growth of AI leads to the need for more data centre and online infrastructure, which increases demand for electricity, said Chaiwat Kovavisarach, group chief executive officer and president of energy conglomerate Bangchak Corporation Plc. He recently introduced participants in the Greenovative Forum to a key aspect of AI: the need for a substantial volume of electricity for the smooth working of data centres and cloud platforms.

How much power these facilities need, where additional electricity will be produced and whether networks of computers can consume less power are key questions that must be addressed for the AI era. Mr Chaiwat offered some solutions as Thailand promotes investment in data centre and cloud service businesses. US companies — Alphabet, parent firm of Google, and Equinix — have announced investment plans here, among others.

Foreign and Thai companies in data centre and cloud service businesses have submitted 47 proposals worth 173 billion baht to the Board of Investment seeking incentive packages. As investment in these businesses gains momentum, the energy issue will only grow more important.