Bangkok: In the rapidly evolving technological landscape, data centers are becoming pivotal global hubs for computing and data processing. Dr. Paijit Wiboonthanasarn, Vice President and Secretary-General of the Thai-Chinese Investment and Trade Promotion Association, has highlighted the growth trajectory of data centers in China, emphasizing the challenges, lessons learned, and crucial areas for Thailand to adapt in order to stay competitive in this future industry.
According to Thai News Agency, the United States currently leads the world with approximately 5,000 data centers, while China has around 500. However, China's strength lies in its "public-private partnership" model, which contrasts with the US's emphasis on private sector leadership. With strategic government guidance, China's data center growth has been rapid, focusing on higher operational efficiency per facility to enhance long-term international competitiveness.
Dr. Paijit notes that, for the Chinese government, data centers serve as crucial tools and springboards for driving new-generation productivity, rather than being mere data storage facilities. Technologies like autonomous vehicles, precision medicine, digital finance, robotics, and smart cities all rely heavily on the computing power provided by these centers, which are likened to the crude oil of the past in terms of determining a nation's future competitiveness.
One challenge facing the global data center industry is its energy-intensive nature, accounting for over 1.5% of global energy consumption. Additionally, water usage in cooling systems poses a significant challenge. China, however, has turned this crisis into an opportunity by committing to using up to 80% green energy in its data centers, as outlined in its 15th Five-Year Plan for Economic and Social Development (2026-2030).
China's "East Data, West Computing" strategy aims to reduce energy loss across regions by processing time-sensitive data in the eastern region closer to users, while non-time-sensitive data is processed in western provinces with abundant green energy resources. China is also exploring innovations like undersea data centers and orbiting data centers to improve efficiency and security.
In response to international competition, data centers have become a focal point of the technology war. US restrictions on high-performance computing chip exports to China, coupled with China's retaliatory restrictions on rare earth mineral exports, have pushed China towards technological self-reliance.
In light of increasing foreign investment interest in establishing data centers in Thailand, Dr. Paijit offers several policy recommendations for the Thai government and private sector. These include accelerating affordable green energy planning, establishing Power Usage Efficiency (PUE) and technology transfer conditions, promoting digital sovereignty, and encouraging Thai youth and startups to develop innovative solutions for future industries.
In conclusion, data centers are set to play a transformative role in shaping Thailand's economy. With sound policies and a conducive ecosystem, Thailand can attract investment and leverage data centers for sustainable economic growth.