Pachara Naripthaphan points out that while data centers are booming, it is essential to build an ecosystem rather than merely attracting capital. He advises asking what additional benefits Thailand gains and proposes four policy directions.
On 18 June 2026, Pachara Naripthaphan, a member of the Securities and Exchange Commission (SEC), commented on the continuous influx of investment into data centers and advanced electronics industries in Thailand, noting that the seemingly exciting investment figures do not guarantee that Thailand will fully benefit unless lessons from past mistakes are learned.
Pachara said the current situation with data centers is strikingly similar to what happened during the clean energy boom from 2012 to 2017. At that time, Thailand had the opportunity to build a new industrial ecosystem for Smart Grid connection equipment and batteries, but large companies absorbed all liquidity, and the expected ecosystem never materialized.
Currently, this marks another turning point for Thailand’s digital economy. According to the Board of Investment (BOI), data center investment increased more than sevenfold within one year, from 98.5 billion baht in 2024 to 728 billion baht in 2025, across 36 projects. Momentum remains strong; in Q1 2026 alone, the digital sector attracted the highest investment nationwide at 873.7 billion baht (27.3 billion dollars) from 48 projects, with data centers accounting for about 86% of the total investment value that quarter. Meanwhile, electronics and electronic appliances drew only 40.5 billion baht from 80 projects during the same period.
“Although these figures look very impressive, the more important question is whether this capital will truly add value for Thai operators or if it will merely involve importing servers to set up in the country and then sending profits abroad. The fact that data center growth is 21 times that of electronics indicates the momentum now is equipment importation, not domestic technology creation,” Pachara said.
Pachara referred to the government’s policy move after establishing the National Semiconductor and Advanced Electronics Industry Policy Committee, calling it a good opportunity for the government to elevate semiconductors as a continuous national agenda, building on the start made during the tenure of Prime Minister Paethongtarn Shinawatra.
The committee’s ongoing work under the current government is a positive sign that policy continuity is maintained despite government changes. It is known that a draft national semiconductor roadmap has been considered, aiming to position Thailand as a regional chip design and production hub under the vision of Made-in-Thailand Chips by 2050. This is promising, but the challenge is how the committee will ensure that Made-in-Thailand Chips is not just a slogan but truly elevates the industry to Made-in-Thailand Value.
The difference between these two terms is the key to the policy’s success or failure. Made-in-Thailand simply indicates where a product is assembled or manufactured, whereas Made-in-Thailand Value shows who receives the added value. If Thailand has factories everywhere but design, intellectual property, and most profits remain foreign-owned, then Thailand is merely shifting from being an assembly contractor in the old industry to a chip assembly contractor today, with no real structural change, Pachara explained.
He proposed four policy directions that must be pursued simultaneously to make Made-in-Thailand Chips become truly Made-in-Thailand Value.
First, design an energy system specifically to support the new industry—not just by amending laws to allow direct power sales but by planning power generation capacity and transmission networks to meet the peak demands of data centers, using clean energy to satisfy carbon neutrality requirements demanded by foreign investors.
Second, build an ecosystem rather than just attracting isolated projects. Lessons from the clean energy era show that having large companies enter does not automatically create an industrial ecosystem. Policies must attract mid-sized suppliers, specialized service providers, and technology startups alongside main investments, and promote upstream industries such as IC design and wafer fabrication to become established.
Third, prevent scarcity of resources such as clean water, energy, and land in the Eastern Economic Corridor (EEC), which will be contested between old and new industries. The government must plan clear and fair allocation; otherwise, new bottlenecks will arise.
Fourth, create Made-in-Thailand Value, not just Made-in-Thailand. Policies must enable significant technology transfer and local content development.
“At this point, the new industries Thailand aims to drive the economy have arrived. It depends on whether the government can seize and effectively promote them in practice. The greater challenge is that the government must build an investment ecosystem that truly benefits the Thai people,” Pachara concluded.