Banpu Plans $1.5 Billion US Power Investment on Data Center Boom
(Bloomberg) -- Thai energy company Banpu Pcl plans to invest at least $1.5 billion in a US expansion to tap surging electricity demand driven by data centers.
Its American unit BKV Corp. is considering greenfield construction and acquisitions of gas-fired power plants to add about 1,000 megawatts of power generating capacity, said Sinon Vongkusolkit, Banpu’s chief executive officer. Banpu will focus on new power projects and acquisitions in Texas, where the company operates twin gas-fired power plants through its US publicly traded subsidiary.
The US’s climbing electricity consumption is driven in part by the rapid expansion of data centers supporting artificial intelligence and cloud computing. That trend is expected to continue over the coming years, tightening supply in some regions and creating opportunities for new entrants and capacity expansion.
“The US power business will be a core earnings driver, supported by sustained demand from data centers and AI,” the 36-year-old CEO said in an interview. “Valuations have increased, but the long-term growth outlook continues to justify investment.”
The company has one business focusing strictly on coal, and a more general power operation that includes coal, gas and renewable energy.
Banpu has been steadily shifting away from its legacy coal business toward cleaner and more stable earnings streams, including gas-fired power and renewable energy.
A surge in coal demand triggered by the Middle East’s oil and natural gas supply disruptions, however, is providing Banpu an unexpected tailwind in its coal business, even as the company accelerates its transition toward a more diversified energy portfolio by increasing renewable energy investments. Thailand’s largest coal producer has prepared to ramp up its production at mines in China, Indonesia and other countries as several new customers have contacted the company for the potential purchases, he said.
Banpu’s two power plants in Texas were acquired in 2021 and 2023, with total combined capacity of about 1,500 megawatts each. They mainly sell power into the state’s electricity market. It also operates power projects in China, Laos, Vietnam and Australia with total capacity of 3,000 megawatts, according to its website.
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