Banpu Plans $1.5 Billion US Power Investment on Data Center Boom

0sspvpqx5va3c2ajxt2{lpf9_media_dl_1.png BloombergArticle content(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.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentIts 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.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe 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.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“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.”Article contentThe company has one business focusing strictly on coal, and a more general power operation that includes coal, gas and renewable energy.Article contentBanpu has been steadily shifting away from its legacy coal business toward cleaner and more stable earnings streams, including gas-fired power and renewable energy. Article contentA 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. Article contentBanpu’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. Article contentTrending CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing Garry Marr: With housing prices flat, the high cost of moving has never been more clear Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing Garry Marr: With housing prices flat, the high cost of moving has never been more clear Personal Finance