Thailand attracted a record US$43.6 billion (RM184.5 billion) in investment applications during the first half of 2026, marking a 37% increase from a year earlier as the country emerged as a major destination for artificial intelligence (AI) and digital infrastructure investments.
According to the Thailand Board of Investment (BOI), 1,299 investment projects were submitted during the six-month period, with digital infrastructure accounting for the largest share of capital.
BOI Secretary General Narit Therdsteerasukdi said Thailand continued to attract investors despite geopolitical uncertainty, volatile energy prices, and ongoing shifts in global supply chains.
“Thailand’s investment growth held steady even as the world economy faced real turbulence. This reflects strong investor confidence in Thailand’s potential as a base for the industries of the future,” he said.
Digital industries dominated investment applications, attracting US$33 billion in proposed capital. The projects include AI data centers, cloud computing facilities, and digital infrastructure.
Other sectors also recorded strong growth. Electronics and electrical appliances secured US$3.56 billion, while agriculture and food processing attracted US$1.82 billion. Logistics, automotive, chemicals, robotics, and advanced manufacturing also posted healthy investment inflows.
Foreign direct investment (FDI) rose 80% year on year to US$40.5 billion, with Singapore remaining the largest foreign investor, followed by the United Kingdom, China, Taiwan, and Japan.
Thailand is also expanding renewable energy capacity to support the electricity demands of next-generation data centers. The country recorded 198 clean energy projects involving solar, wind, biomass, and biogas during the first half of the year.
Manufacturers are simultaneously investing in automation and robotics under Thailand’s Smart and Sustainable Industry initiative, with 132 projects focused on digital transformation and productivity improvements.
The BOI expects approved projects to create more than 82,000 jobs annually while boosting exports by over US$36.8 billion.
Implications for Malaysia
Thailand’s strong investment performance could increase competition with Malaysia, which has also emerged as a regional hub for AI infrastructure and hyperscale data centers over the past two years.
Malaysia has attracted major investments from global technology companies into Johor, Kuala Lumpur, and Cyberjaya. However, Thailand’s rapid expansion suggests multinational companies are increasingly diversifying investments across Southeast Asia instead of concentrating them in a single market.
Thailand’s push into renewable energy may also strengthen its appeal among technology firms seeking sustainable power sources for AI data centers. Reliable green electricity has become an important consideration for hyperscale operators.
On the other hand, analysts say the region’s overall growth could benefit Malaysia. As more semiconductor, electronics, and AI companies establish operations across ASEAN, Malaysian suppliers may gain opportunities within regional supply chains, particularly in electronics manufacturing, logistics, engineering services, and cloud infrastructure.
Industry observers note that both Malaysia and Thailand are likely to compete for future investments while simultaneously benefiting from Southeast Asia’s growing importance as a global technology manufacturing and digital infrastructure hub.
