BANGKOK, Thailand – Kasikorn Securities (KS) says political developments in Texas and other key US states could increase the risk of data center projects being suspended or delayed by 12–18 months, potentially encouraging operators to diversify investment towards Asia, including Thailand. The brokerage’s assessment follows Democratic gubernatorial victories in Texas and several other states in the November 3 US elections. In Texas, Democrat Gina Hinojosa defeated incumbent Republican Governor Greg Abbott, becoming the state’s first Democratic governor in more than three decades.
KS identifies concerns over electricity costs, water consumption and tax incentives for large-scale investment as factors that could affect data center development, particularly in Texas. The state accounts for nearly 30% of the new data center capacity expected to come online in 2028, according to the brokerage’s analysis.
A slowdown in US data center construction could put pressure on technology stocks and companies throughout the global semiconductor supply chain, as delayed projects may reduce or postpone demand for chips, equipment and related infrastructure.
However, KS believes the situation could create opportunities for Asian markets if data center operators reconsider their investment locations or spread projects across more countries. Thailand could attract some of this investment through its industrial estates, electricity supply and utility infrastructure.
The brokerage identifies three groups of Thai-listed companies that could benefit from increased demand for data center investment:
- Industrial estates: WHA and AMATA could gain from demand for land and industrial space for new data center projects.
- Power generation: GULF and BGRIM could benefit from the substantial electricity requirements of data centers.
- Water and utilities: EASTW and WHAUP could see opportunities related to water supply and supporting utility systems.
The assessment points to a possible opportunity for Thailand to attract a larger share of regional data center investment. However, any benefit will depend on whether developers actually adjust their plans and select Thailand for new projects.
