Thai energy company Banpu plans to invest at least $1.5bn (Bt48.86bn) to expand its US operations, aiming to capitalise on rising electricity demand driven by the rapid growth of data centres, reported Bloomberg.

Banpu CEO Sinon Vongkusolkit said that BKV, the company’s US subsidiary, is considering building new gas-fired power plants and buying existing facilities to add around 1GW of generating capacity.

The company is focusing its efforts in Texas, where it operates two gas-fired power plants through its publicly traded US subsidiary.

Rising electricity consumption in the US is attributed to the expansion of data centres supporting AI and cloud computing.

This trend is expected to persist, creating supply constraints in certain areas and opportunities for increased capacity and new market entrants.

“The US power business will be a core earnings driver, supported by sustained demand from data centres and AI," said Vongkusolkit in an interview.

“Valuations have increased, but the long-term growth outlook continues to justify investment.”

Banpu operates in both the coal and power sectors, encompassing gas, coal and renewable energy.

The company is steadily shifting from its traditional coal business towards cleaner, more stable revenue streams.

Even as this transition continues, disruptions to oil and gas supplies in the Middle East have boosted coal demand, benefitting Banpu’s coal operations.

The company plans to increase coal production at its mines in China, Indonesia and other nations in response to interest from new customers.

The two Texas power plants, acquired in 2021 and 2023, have a generating capacity of approximately 1.5GW each and primarily supply electricity to the state market.

Banpu also manages power projects in China, Laos, Vietnam and Australia totalling 3GW of capacity.