Cabinet backs data centre board to protect water and power supplies

Thailand’s Cabinet has approved a draft Prime Minister’s Office regulation establishing a national policy committee to oversee the data centre industry, with safeguards covering electricity, water, the environment and national data security.

The decision, reached at the Cabinet meeting on Wednesday (August 5), is intended to support Thailand’s transition towards a high-technology digital economy while ensuring that the industry’s substantial consumption of electricity and water does not disrupt people’s lives.

It also calls for mechanisms to protect data regarded as vital to national security.

Government Spokesperson Rachada Dhnadirek explained that although the government sought to promote data centre investment as a driver of economic growth, it was deeply concerned that, without clear policies and effective oversight mechanisms, the industry’s expansion could cause more harm than good, particularly by placing additional burdens on the public in the future.

Three ministries to lead data centre oversight

A deputy prime minister designated by the prime minister will chair the Data Centre Business Policy Committee.

The ministers of Digital Economy and Society, Interior and Energy will serve as vice-chairs, while the prime minister may appoint up to three additional expert members.

The committee will develop policies, standards and operating frameworks for government agencies to follow when approving projects, issuing licences or granting other authorisations to data centre operators.

It will also study, analyse and continually assess the effects of data centre operations before submitting its findings and recommendations to the Cabinet.

Five safeguards for people and the environment

The oversight framework will focus on five key areas to protect the interests of the country and its people:

• Energy security: Promote the use of clean energy while ensuring that data centre demand does not drive up electricity prices and place an additional burden on the public.
   
• Resource allocation: Regulate the use of water and land to ensure fair and efficient allocation without depriving other sectors of the resources they require.
   
• Urban planning and safety: Oversee the selection and positioning of data centre sites and require stringent fire-prevention measures.
   
• Data security: Protect the country’s data sovereignty and prevent data breaches or leaks.
   
• Remedial mechanisms: Require operators to take responsibility and provide appropriate remedies if their activities affect the environment or surrounding communities.
   

“This policy will ensure that entry into the industry is not open to just anyone. Every investment must comply with the committee’s standards and undergo rigorous scrutiny and assessment to ensure that data centre investment delivers genuine benefits to the country,” Rachada stressed.

Data centre boom brings environmental pressures

Data centres house extensive computer equipment, servers and information technology infrastructure used to store, process and distribute vast quantities of data. As these facilities operate continuously, they require stable electricity supplies and cooling systems around the clock.

Thailand has set a clear goal of becoming a regional digital economy hub, making data centre development an important part of its strategy to attract advanced technology investment.

Their expansion has, however, raised environmental concerns. Data centres consume large amounts of electricity, and continued dependence on power generated from fossil fuels could increase carbon dioxide emissions, greenhouse gases and other pollutants.

Many cooling systems also require substantial volumes of water to remove heat from equipment. Poorly managed cooling processes or the discharge of heated water could affect water quality and surrounding ecosystems.

Investment applications for data centre and data-hosting businesses submitted to the Board of Investment have continued to rise. In 2025, the BOI received 37 applications with a combined investment value of 736.55 billion baht.

A further seven projects worth 872.49 billion baht were submitted between January and March 2026, exceeding the total investment value recorded for the whole of the previous year.