NESDC warns of high energy use and low jobs in Data Centers

Matichon•Economy•2d ago

Reader Briefing

The NESDC emphasizes that Data Center investments must be balanced with environmental management and the integration of Thai businesses into high-value chains.

•Worawan Plikamin of the NESDC discussed the impact and opportunities of Data Center investments on August 24.
•Global Data Center investment value is projected to reach 6.7 trillion USD between 2025-2030.
•Data Centers consume high amounts of electricity and water, potentially impacting local communities and environments.
•Employment in Data Centers tends to peak during construction and decrease significantly after operations begin.

Overview

•Worawan Plikamin describes Data Centers as critical digital economy infrastructure for data processing and distribution, supporting AI and digital services.
•The main customer groups for Data Centers include IT and telecommunications (38%), banking, finance, and insurance (26%), and manufacturing (15%).
•Global investment for Data Centers is expected to reach 6.7 trillion USD during 2025-2030, with Asia representing approximately 34% of demand.
•Worawan Plikamin notes that Data Centers in Ireland use about 21% of the country's electricity, while the US faces power system pressure from AI projects.
•Employment may be lower than investment figures suggest, with one example showing a drop from 1,700 construction jobs to 500 operational positions.
•Worawan Plikamin asserts that technology and intellectual property benefits primarily remain with the Data Center owners rather than local operators.
•The NESDC suggests implementing rules on energy targets, environmental impact assessments, and requirements for Data Centers to use Thai goods and services.
•The NESDC proposes pushing Thai businesses into high-value chains such as Cloud, software systems, cybersecurity, and energy-efficiency technologies.

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Key Quotes

Worawan Plikamin

"The key challenge is not just how many Data Centers the country can attract, but what benefits Thailand will gain and how Thai entrepreneurs can enter the value chain beyond construction or utilities."

โจทย์สำคัญไม่ได้อยู่เพียงว่าประเทศจะดึงดูด Data Center ได้มากแค่ไหน แต่ต้องดูด้วยว่า ประเทศไทยจะได้ประโยชน์อะไรจากการลงทุนเหล่านี้ และจะทำอย่างไรให้ผู้ประกอบการไทยเข้าไปอยู่ในห่วงโซ่มูลค่าได้มากกว่างานก่อสร้างหรือสาธารณูปโภค

Key Entities

Person

Worawan Plikamin(วรวรรณ พลิคามิน)

Deputy Secretary-General of the National Economic and Social Development Council.

Organization

National Economic and Social Development Council(สภาพัฒนาการเศรษฐกิจและสังคมแห่งชาติ)

An organization, also referred to as NESDC, that analyzes the impact of Data Center investments on the Thai economy.

NESDC(สศช.)

Abbreviation for the National Economic and Social Development Council.

Place

Ireland(ไอร์แลนด์)ℹ️

A country cited as an example where Data Centers use approximately 21% of national electricity.

USA(สหรัฐฯ)ℹ️

A country where several areas face electrical system pressure due to Data Center and AI energy demands.