The Thailand Board of Investment (BOI) at a meeting today approved investment applications worth a total of 28.6 billion baht (ca. US$ 870 million) in digital infrastructure and travel sector projects, as well as improved incentives for the use of local content in the manufacturing of electric vehicles (EV) and hybrids, as well as electrical appliances (E&E).

The largest project approved today is Stratus Technology Co., Ltd.’s plan to invest 23.7 billion baht to build a Tier 3 data center with an IT Load of approximately 203 megawatts (MW). The project will be located at the CPGC Industrial Estate, in Rayong Province. Stratus Technology is an affiliate of China’s ZDATA Technologies Co., Ltd.

In recent years, Thailand has attracted large amounts of investments in data centers and digital services, from companies as diverse as Amazon Web Services, Tik Tok, and NTT Data, especially in 2024 when that activity became for the first time the top-ranked sector in terms of investment value. The trend was confirmed in the first quarter of 2025, which saw a fivefold jump in digital sector applications from the year earlier period.

“The momentum of the demand for digital services should ensure that the data center investments remain a highlight in term of the value of applications this year,” Mr. Narit Therdsteerasukdi, Secretary General of the BOI, said after the Board meeting, which was chaired by the Deputy Prime Minister and Minister of Finance, Mr. Pichai Chunhavajira. “The new incentive package for local content utilization will also contribute to supporting existing part manufacturers during the sector’s transition and help integrate them into the broader supply chain.”

The board also approved Thai Vietjet Air Joint Stock Co.,Ltd.’s plan to invest 4.96 billion baht to acquire 6 new passenger aircraft with a combined capacity of 1,134 seats. The new planes will fly on both domestic and international routes, further reinforcing Thailand’s role as a regional aviation hub.

Incentives for the use of Local Content in the Automotive and Electrical Appliance Industries

The Board today approved promotion measures aiming to increase the use of local content in the manufacturing of battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), as well as electrical appliances, by offering an additional 2-year 50% corporate income tax reduction (CIT) to companies meeting the criteria and conditions.

To qualify for the tax benefits, the manufacturers of EV and related electric vehicle components must use locally made parts with a combined value of not less than 40% of the total value of raw materials for BEV, and not less than 45% for PHEV.

For the E&E sector, companies must fall under the smart electrical appliance and electric appliance manufacturing categories and must use locally made parts with a combined value of not less than 40% of the total value of raw materials.

Qualified applicants can be either existing BOI promoted projects whose original CIT exemption privileges have not expired, or new investment projects. The manufacturers must also be certified “Made in Thailand” (MiT) by the Federation of Thai Industries (FTI) to qualify.