SCB EIC says Thai investment grew 27% in Q2, eyes Data Center as government prepares new regulatory committee

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โดย Kaohoon·TH·Read original
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SCB EIC, the research arm of Siam Commercial Bank, reported that private investment in Thailand still has momentum from applications for investment promotion with the Board of Investment, or BOI, especially in high-tech industries, while actual investment in the second quarter grew by 27%. Although the second half is likely to slow somewhat from a high base, the Data Center business is one of the industries drawing the most interest from foreign investors, thanks to infrastructure readiness and government investment support measures. However, Data Center investment in Thailand is in a temporary pause in approvals and investment in order to review policy direction, promotion measures, and impacts on the environment, electricity and water pricing structures. The government is in the process of setting up a Data Center committee to set new criteria, which are expected to be clear within this year, covering four areas: building linkages with local operators and the local economy, ensuring electricity and water resource security, environmental standards within buildings, and managing overall environmental impacts. On the fiscal side, the role of government spending in driving the economy is likely to decline, after the budget for the Thai Chuay Thai stimulus program fell from a framework of 400 billion baht to about 40 billion baht currently, and is expected to last only about one more month. Meanwhile, next year's budget expands by only 0.2%, below the inflation rate, with recurrent spending up 5% but investment spending contracting 8%, and public debt is likely to reach 70% of GDP next year. Under these constraints, the government needs to shift from direct budget spending to using policy mechanisms and regulations to encourage more private investment, such as the national Power Development Plan, or PDP. If it clearly sets the direction for investment in renewable energy and carbon capture and storage technology, or CCS, the government could use about 360 billion baht in electricity grid investment but attract as much as 1.4 trillion baht in private investment over the next 10 years. Energy price subsidies are another key constraint, with the Oil Fuel Fund nearly 90 billion baht in negative territory and facing an outflow burden of almost 400 million baht per day to subsidize prices. If prices are held at current levels through the end of the year, the negative position could widen to about 128 billion baht. Past electricity price cuts effectively deferred the burden onto the Electricity Generating Authority of Thailand, or EGAT, leaving the government with increasingly limited options for energy price subsidies. Therefore, driving new investment, especially Data Centers, requires balancing economic opportunity, attracting foreign investment, and creating benefits for Thai operators, alongside maintaining long-term energy, water resource, and environmental security.

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SCB X Public Company Limited
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SCB EIC research arm reports Thai investment grew 27% in Q2 and Data Center policy review; no direct company-specific development for SCB X.

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