CGSI Favors AMATA as Thai Industrial Estates Set to Gain From Data Center Investments

CGS International Securities (Thailand) (CGSI) stated that it does not view data centers solely as a driver of revenue growth, but also considers the perspective that “infrastructure and access to renewable energy remain limited.” Thailand is now imposing stricter screening measures for data center projects, shifting the focus from quantity to infrastructure readiness. Therefore, the analyst firm believed that the Board of Investment (BOI)’s new project screening criteria will prioritize hyperscaler data center providers over other types. WHA Corporation Public Company Limited (SET: WHA ) and Amata Corporation Public Company Limited (SET: AMATA ), which have comprehensive land, electricity, water, and renewable energy solutions, are expected to benefit from Thailand’s new regulations, according to the analyst. Electricity is a major factor in data center investment decisions. CGSI forecasted that data center capacity in the Eastern Economic Corridor (EEC) will rise to 2.7 GW by 2030. The broker believed that EEC is not at risk from electricity supply limitations, as the Electricity Generating Authority of Thailand (EGAT) has extended the transmission system to meet demand up to 3.8 GW. Additionally, renewable energy is accessible through direct power purchase agreements (Direct PPA). The construction of captive gas-fired power plants and small modular nuclear reactors (SMR), as well as the extension of PPAs for old power plants by 5 – 10 years, may further support the next wave of data center investments. Water security will also become a key site selection factor for data centers in the future. EASTW, the largest water management firm in the EEC, estimates that water supply and demand will rise to 500 million and 350 million cubic meters, respectively, in 2031. The supply-demand gap of 117 – 184 million cubic meters per year between 2026 and 2031 suggests that the EEC’s water reserves can still support additional data center-related demand in the future. CGSI projected that WHA and AMATA’s combined market share for data center investments in Thailand will increase from 15.4% in 2025 to 56.5% in 2037, as project approvals become increasingly strict. Additional land demand from renewable energy equipment manufacturing and the AI & data center supply chain is also expected. Data centers are anticipated to be the main driver for new land sales, comprising 39.4% of new land sales for AMATA and WHA in 2026 and 23.9% in 2027. The brokerage firm further estimated that water service revenues to data centers for WHA and AMATA will increase to 32.7% and 5.5% of utility revenue in 2031, respectively, up from just 1.3% and 1.2% in 2024. Revenue from WHA’s solar business may have an additional upside of 33.2 – 41.1% in 2028 – 2031 from selling renewable electricity to data centers via Direct PPA. CGSI reiterates its “Overweight” rating for the industrial estate sector, as strong FDI in the digital industry is expected to support recurring revenue growth over the long term. The sector is currently trading near its five-year historical average forward P/E of 13 times. AMATA is selected as the top pick due to its significant potential upside from a higher data center market share and a narrowing P/E gap with WHA, while AMATA demonstrates high revenue visibility. Land sales and ownership transfers are expected to increase in the second half of 2026. The sector would be further supported by a conclusive Direct PPA policy. Downside risks include potential transmission bottlenecks and delays in direct investment approvals from China.