Contractors urge 50% local content for Thai data centers

Thansettakij•Economy•6d ago

Reader Briefing

Private sector participants at NEOTech FORUMS 2026 propose a 50% local content requirement for data center investments to ensure economic benefits remain in Thailand.

•The proposal was discussed at the NEOTech FORUMS 2026 Powering Thailand’s AI Future event.
•Thai contractors are losing opportunities to Chinese and Malaysian partners due to strict construction timelines.
•There is a warning regarding 'zero-dollar data centers' where foreign investment does not circulate within the Thai economy.
•Thai companies have potential in peripheral infrastructure such as energy systems and EV components.

Overview

•The NEOTech FORUMS 2026 Powering Thailand’s AI Future was organized by the College of Innovation and Industrial Management (CIIM) of King Mongkut's Institute of Technology Ladkrabang (KMITL) and Base Economic.
•Private sector participants stated that data center policy success should be measured by job creation and technology transfer rather than just investment value.
•Foreign investors often choose partners from China and Malaysia because Thai contractors cannot always meet extremely tight construction deadlines, such as 12-month frames.
•Lack of supporting measures may lead to 'zero-dollar data centers' where investment and benefits do not circulate in the Thai economic system.
•Thai producers have limited roles in core technology like servers and GPUs, which must be imported.
•The government is urged to define a clear Local Content list for areas where Thai entrepreneurs are ready, such as energy systems and solar power.
•Naratchai suggested that the government should support Thai energy businesses like IRPC and GPSC to become partners or co-investors.

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Key Entities

Organization

College of Innovation and Industrial Management (CIIM)(วิทยาลัยการจัดการนวัตกรรมและอุตสาหกรรม (CIIM))

An organizer of the NEOTech FORUMS 2026 event.

King Mongkut's Institute of Technology Ladkrabang (KMITL)(สถาบันเทคโนโลยีพระจอมเกล้าเจ้าคุณทหารลาดกระบัง)

The institution to which the College of Innovation and Industrial Management belongs.

Base Economic(ฐานเศรษฐกิจ)

A co-organizer of the NEOTech FORUMS 2026 event.

IRPCℹ️

A Thai energy business with readiness in land and power production capacity.

GPSCℹ️

A Thai energy business with readiness in land and power production capacity.

Person

Naratchai(ณรัตน์ไชย)

An individual who suggested government support for Thai energy businesses to partner in data center investments.