Entrepreneurs are warning the rapid expansion of data centre investment could deepen water scarcity, even as they acknowledge its potential to drive business growth, according to the latest poll conducted by the Federation of Thai Industries (FTI).
Of the 160 FTI executives surveyed, 68.8% cited insufficient water supply as their top concern amid the rapid rise in data centres, said Montri Mahaplerkpong, deputy chairman of the FTI.
Data centres are known as resource-hungry facilities that consume vast amounts of electricity and water.
Servers inside data centres run non-stop to process and store data, leading to massive energy demand and heat generation. Cooling systems are critical because if servers overheat, they fail.
"We fear rising water demand could spark competition between industries and communities for limited supplies in the future," said Mr Montri.
Some 61.3% of respondents said rising electricity demand was a concern, and an equal tally were anxious about new laws keeping pace with digital technology, he said.
If there are no measures to manage electricity demand and supply, the nation's energy security will be affected, said Mr Montri.
Thai entrepreneurs' limited gains from data centres due to heavy dependence on foreign technology and talent emerged as a lesser concern, drawing 51.2% of votes.
Despite these challenges, 48.1% of entrepreneurs believe data centre investment will play a significant role in developing Thai industries.
"Only 5% of respondents said the server farm industry offers little advantage to the economy," he noted.
Nearly half of respondents (48.8%) believe Thailand has the potential to become a regional hub for data centres, but stress the country must first overcome key limitations to support the industry's growth.
