CGS International Securities (Thailand) notes that Gulf Development Public Company Limited (SET: GULF) remains firmly on track with its ambitious data center and renewable energy expansion, according to key takeaways from its latest analyst meeting.
Management reiterated that their near-term data center target of 400–500 MW by FY2027–28 represents just an initial phase, while the company continues to aim for a long-term capacity of 2,000 MW at its DC Park.
A strategic focus involves securing high-voltage substations to eliminate infrastructural bottlenecks, a move geared towards supporting the growing demand for AI-driven computation rather than traditional data storage solutions. Importantly, GULF stated it has no intention of engaging in high-risk GPU or chip investments.
GULF is also aligning its data center expansion with fuel procurement strategies. The long-term vision connects data center growth directly with power generation, targeting a balance of 4,000 MW in both data center capacity and dedicated gas-based power plants to establish a structural energy loop.
Progress on domestic renewable energy projects is ahead of schedule. The company is seeing internal rates of return exceeding forecasts, driven by a significant decrease in equipment costs. Prices for battery energy storage systems have notably dropped from THB 300,000–350,000 per MWh to just THB 100,000 per MWh.
The upcoming PDP 2026 framework is expected to set a nationwide ceiling of 10 GW for data center power demand, further supporting sector growth. GULF is moving assertively into direct power purchase agreements, expanding these agreements from renewables to gas-fired power plants to meet rising corporate demand.
According to CGSI, GULF’s near-term earnings appear well-supported by 400 MW of new solar capacity scheduled to reach commercial operation in 4Q26, the annual peak wind season, and a boost in U.S. Jackson capacity payments to $329 per MW per day.
The company’s capital expenditure remains well-financed. While net interest-bearing debt to equity is set to rise from below 1.0x to between 1.1–1.3x, it remains well within the 3.5x bond covenant, ensuring financial stability as GULF pursues its growth agenda.
