Thailand to Trial System for Data Centers to Buy Green Power

A new pilot project will allow data centers to directly purchase renewable power, helping tech firms achieve their sustainability goals.

Bloomberg News

June 26, 2024

1 Min Read
Bangkok skyline

(Bloomberg) -- Thailand is rolling out a pilot project that will allow data centers to directly purchase renewable power, a move that could make it easier for international tech giants to hit ambitious green goals in the developing nation.

The move is aimed at attracting foreign companies that must use clean power, Thai Prime Minister Srettha Thavisin said in a statement posted on X, formerly known as Twitter. “Clean electricity is a very important competitive advantage and direct power purchase agreements will unlock the door for Thailand.”

The lack of a policy framework for corporations to directly buy green power across parts of Southeast Asia poses an issue for energy-guzzling industries that have also promised to decarbonize.

Select companies, like data center operators, that are keen to participate in Thailand’s pilot project must have large investment scale, standardized operations in every country that they invest, and are prohibited from selling surplus power to the domestic electricity system, Prasert Sinsukprasert, the ministry’s permanent secretary said in a briefing in Bangkok on Tuesday (June 25). 

The pilot project was approved with a power generation capacity of no more than 2 GW. The energy ministry and related agencies have been tasked to study the impact of direct power purchase agreements on state-owned electricity producers, industrial users, and the public, according to Prasert.

Related:Could Algae Be the Key to Data Center Sustainability?

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