Thailand tackles data centre loopholes amid divided views
A new policy board meets on September 4 to unify oversight as debate intensifies over investment gains, public support and resource costs
- The Thai government has halted approvals for new data centre projects to address regulatory loopholes stemming from a lack of unified oversight, with a new policy committee established to coordinate various agencies.
- Supporters argue that data centres are essential infrastructure that will attract billions in investment, drive demand for clean energy, and help elevate Thailand to a high-income nation.
- Critics express caution, highlighting the industry's substantial consumption of national resources like energy and water, and question if government support could be better used in other sectors with a greater economic impact.
Thailand’s Board of Investment (BOI) has halted approvals for new data centre projects while the government prepares coordinated oversight for an industry currently regulated through separate laws and agencies.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, who chairs the Data Centre Business Policy Committee, has scheduled its first meeting for Friday (September 4, 2026).
Bangkok Governor Chadchart Sittipunt and representatives from the energy and natural resources and environment ministries are due to attend.
Ekniti said the present system lacked integration. The committee will connect the relevant authorities, tighten inspections and law enforcement, and consider the industry’s economic, social and environmental effects when setting policy and investment incentives.
The BOI stopped approving new projects in April, meaning the developments currently proceeding had received investment promotion earlier.
Ekniti said relatively few operating data centres had obtained BOI approval, while many operators had relied on gaps created by the absence of unified controls.
Projects in urban areas that applied for construction permission as warehouses will be reviewed individually. Authorities will pursue legal proceedings if any violations are found.
No single regulator covers the industry
A source at the Office of the National Broadcasting and Telecommunications Commission (NBTC) said Thailand had no single law covering every aspect of data centre operations.
Responsibility is divided among authorities overseeing building construction, electricity use, factory operations, investment promotion, communications systems and data transmission.
Although data centres form part of the country’s digital infrastructure, the Ministry of Digital Economy and Society does not have comprehensive authority over the industry. Its powers cover communications and data transmission, while construction permits and investment promotion fall under other agencies.
Twenty-six operators held NBTC telecommunications business licences covering qualifying data centre services as of Monday (July 27, 2026). Of these, 23 held Type 1 licences and three held Type 3 licences.
The approvals required by each data centre depend on its size, format and activities.
Some projects may need clearance for electricity use, BOI promotion and an NBTC licence, while others may not fall within every category.
No individual permit can therefore establish whether a project has received every approval required for all aspects of its operations.
Supporters point to infrastructure and clean energy
Dr Narongchai Akrasanee, a former commerce minister and chairman and independent director of MFC Asset Management Public Company Limited, told Krungthep Turakij that Thailand should fully support data centre investment.
He described the industry as essential infrastructure for modern businesses and warned that investment could move elsewhere if Thailand failed to seize the opportunity.
The sector would also generate substantial demand for clean electricity, supporting growth and further investment across the energy industry, he said.
Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office (EECO), compared a data centre to a “digital stadium” capable of attracting global technology industries to establish and expand operations in Thailand.
He said the sector could drive a large-scale transformation of energy and utility systems because data centres require vast amounts of electricity and water while operating under strict sustainability conditions.
“Several hundred billion baht is currently being invested in data centres, but this will be followed by at least another hundred billion baht in clean energy and recycled-water systems to supply the industry,” Chula said.
Major investors could initially rely on the existing energy system for two or three years, he added, but would subsequently need clean-energy options to meet environmental, social and governance standards.
Chula said new S-Curve industries such as data centres and artificial intelligence could help Thailand attain high-income status within 12 years by creating more highly paid jobs.
Starting salaries for vocational graduates entering targeted industries in the Eastern Economic Corridor had risen from about 18,000 baht to between 30,000 and 40,000 baht, he said.
“If Thailand selects clear target industries and develops people with the skills they require, per-capita income will rise first in the EEC and then help lift average income across the country,” Chula said.
BOI targets AI and financial hubs
BOI Deputy Secretary-General Sudhasinee Smitra said the agency was preparing to advance investment under a strategy intended to establish Thailand as a centre for several industries of the future.
The BOI is developing investment goals around an AI Hub, Green Hub and Financial Hub. The AI initiative is expected to support further investment in data centres and advanced digital infrastructure for rapidly expanding data-processing and storage requirements.
Sudhasinee said the BOI’s work extended beyond granting incentives to developing the wider investment ecosystem with government agencies and private businesses. This included addressing obstacles that delayed projects and investment flows.
The BOI and Finance Ministry are also considering support beyond existing tax incentives. Proposed financial tools include low-interest loans intended to strengthen Thailand’s ability to compete for investment from major global technology companies.
Resource demands prompt calls for caution
Asst Prof Dr Kessara Thanyalakpark, managing director of Sena Development Public Company Limited, said data centre investment appeared attractive when assessed on its own but required closer comparison with other possible uses of public resources.
She compared data centres with industrial estates, noting that property developers could benefit from putting land to productive use. However, the facilities consume substantial national resources and receive several forms of government support funded partly through the state budget.
“The government must compare whether using the same amount of money to support another industry with a longer supply chain would generate a greater business impact,” Dr Kessara said.
Source: Bangkokbiznews
