AI projects are among the latest top draws in terms of global investment, with governments around the world, including Thailand, courting tech companies to launch such projects in their countries.
Most are coming in the form of data centres, with servers, data storage and network equipment becoming the hot new investment for many.
The New York Times recently reported that 60% of the 1,244 largest data centres in the world were outside the United States. At least 575 such projects are reportedly now being built in Africa, Europe, Latin America and Asia.
Southeast Asia is also emerging as a major data centre hub led by Singapore and Malaysia. The Thai government is also expecting a windfall as Malaysia’s Johor Bahru and Singapore are facing shortages of both electricity and water. Local developers are asking the government to upgrade the electricity network and produce more clean energy to cater to data centres.
The country plans to invest in and attract data centre development, expanding capacity from 350 megawatts to 1,000MW within three years, based on a total investment of US$6.5 billion (211 billion baht).
Behind all this economic data, there are rising complaints about the growing competition for resources between various communities and data centres.
AI data centres are known for their insatiable demand for electricity to run AI apps, and they require massive amounts of water to keep their systems cool.
Mexico and South Africa are reportedly seeing electricity blackouts get worse, while in Ireland, data centres consume more than 20% of the country’s electricity, and 7% of power demand in Singapore is attributed to AI data centres.
In Chile, underground water is allegedly being depleted due to this trend. Similar concerns have been reported in Brazil, Britain, India, the Netherlands, Singapore and Spain.
The big question is: Are the Thai government and other responsible bodies aware of this burden?
As the Eastern Economic Corridor (EEC) has become the designated area for data centres, notably in the provinces of Chon Buri and Rayong, have policymakers prepared enough water to cater to their farm sectors, the large petrochemical complex in Rayong, the tourism industry in Pattaya, and all these data centres?
Lest we forget, water shortages have pitted farmers against the industrial sector in recent years. The arrival of more data centres will exacerbate such tensions.
In terms of electricity, the government will have to supply more power to data centres that run 24/7. Many data centres owned by companies in Western countries also require a clean, stable power supply.
Is all this investment to boost the power supply worth the economic gain, given the risks and pitfalls? After all, a one-gigawatt centre can consume as much power and water as 200,000 to 300,000 households, yet it may only employ 50 workers.
Regardless, data centres are the backbone of the digital economy, which uses traditional ones as its foundation. This, in turn, attracts investment in next-generation data centres.
The government needs to prepare proper resource management and laws to ensure the fair allocation of water and prevent these centres from opening in rural and farm communities.
Above all, the government must work harder to create a suitably skilled workforce and talent base.