Thailand’s richest man plans 140 billion baht expansion amid AI boom
The move reflects a growing race across South-east Asia to build the computing power needed for AI
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[BANGKOK] Thailand’s richest man, Sarath Ratanavadi, plans to spend as much as 140 billion baht (S$5.5 billion) through Gulf Development over the next five years to expand data centres and other infrastructure needed to support the artificial intelligence boom.
The nation’s largest power producer aims to add as much as 2,000 megawatts of data centre capacity during the period to meet rising demand for AI and cloud-computing services, chief financial officer Yupapin Wangviwat said during a video conference with investors on Thursday (Jun 4). The company and its partners currently operate facilities with a combined capacity of about 200 megawatts.
“We see AI and cloud computing as major growth opportunities for our company,” she said. “Our strong footprint and expertise in the power business give us a significant advantage as we expand into these areas.”
The company’s shares jumped as much as 5.8 per cent to a record on Thursday, set to push their gain for the year above 61 per cent.
The move reflects a growing race across South-east Asia to build the computing power needed for AI. Technology companies are pouring billions of US dollars into data centres as they seek more capacity for AI tools and online services, creating new opportunities for energy and infrastructure providers.
After consolidating his power and telecommunications businesses into Gulf Development last year, Sarath – whose net worth stands at US$18.3 billion, according to Bloomberg Billionaires Index – has been steering the company into new areas including digital infrastructure, virtual banking and AI-related services as it looks for new sources of growth.
Gulf Development has been strengthening its presence in the sector through partnerships with companies including Microsoft and Singtel, as demand for computing capacity accelerates across the region. It also entered into an agreement early this year with Alphabet’s Google to jointly explore business opportunities.
The Bangkok-based company expects to fund the expansion through operating cash flow, bond sales and bank borrowings, according to Yupapin. It is in talks with lenders for loans of between US$400 million and US$600 million, and plans to issue about 20 billion baht of bonds in September. Gulf Development is also considering its first foreign-currency debt sale. BLOOMBERG
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