Gulf Development, Thailand’s largest power producer, aims to add as much as 2,000 megawatts of data center capacity over 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, as reported by Bloomberg.
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.”
Sarath Ratanavadi, CEO of Gulf Development. Photo courtesy of the company |
Gulf Development shares rose as much as 5.8% to a record on Thursday, putting the stock on course to extend its gains this year to more than 61%.
The expansion reflects intensifying competition across Southeast Asia to develop the computing power needed for AI. Technology companies are investing billions of dollars in data centers as they seek additional 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, the CEO whose net worth stands at $18.3 billion according to the Bloomberg Billionaires Index, has been steering the company into new areas including digital infrastructure, virtual banking and AI-related services as it seeks new sources of growth.
Gulf Development has been expanding its presence in the sector through partnerships with companies including Microsoft and Singtel, as demand for computing capacity accelerates across the region. The company also reached an agreement earlier this year with Alphabet’s Google to jointly explore business opportunities, according to reports by The Bangkok Post and The Business Times.
The Bangkok-based company expects to fund the expansion through operating cash flow, bond sales and bank borrowings, Yupapin said. It is in talks with lenders for loans of between $400 million and $600 million, and plans to issue about THB20 billion of bonds in September.
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