DES Minister probes unauthorised Bangkok data centres

Digital Economy and Society Minister Chaichanok Chidchob has ordered an accelerated investigation into several data centres reported to be operating at Bangkok locations where such use had not been authorised.

Authorities are examining the status of the premises, possible fuel stockpiling for electricity generation and potential links to foreign investors. No operators have been named, and the investigation has not established that any identified person or company committed an offence.

Speaking on Tuesday (September 1) at the 60th Anniversary of His Majesty the King’s Accession to the Throne International Convention Center at Prince of Songkla University’s Hat Yai campus in Songkhla, Chaichanok said he had received reports about the facilities some time ago.

He said data centres appeared to have been established at several separate sites without the required authorisation for those locations. Relevant agencies are compiling information to determine the circumstances surrounding each facility.

Chaichanok did not disclose how many centres were involved, saying he would release the figure after receiving a consolidated report. He confirmed there were several sites and said some of the premises also provided other services.

He said he wanted the investigation completed quickly but would not release details until the information was comprehensive and accurate.

Fuel storage and legal status under examination

Chaichanok said the purpose behind the data-centre operations had not yet been established.

Some premises appeared to have been converted from businesses that were no longer profitable or useful into operations associated with the future economy, he said. Investigators would need to determine how and why each conversion took place.

Authorities are separately examining reports that fuel was being stockpiled to generate electricity for the facilities. Chaichanok said he had instructed relevant agencies to investigate and had requested assistance from the Royal Thai Police.

Initial indications suggested that fuel may have been stored, he said, but officials did not yet know the quantity involved.

Investigators must also determine whether the storage arrangements complied with relevant laws and safety requirements. The minister did not specify the type of fuel, where it was stored or what generating equipment was being used.

The inquiry will examine when each data centre was established and which regulations were in force at the time. Chaichanok said authorities would have to consider how to proceed if any facility began operating before applicable rules were introduced.

Possible foreign involvement is also being investigated. Chaichanok said it was possible that foreign business groups were connected to some of the sites, but stressed that more evidence was required before any conclusion could be reached.

Why large data centres draw scrutiny

Data centres provide essential infrastructure for cloud computing, digital services and artificial intelligence, storing and processing large volumes of information through equipment that generally operates around the clock.

Their importance to the digital economy is accompanied by substantial infrastructure requirements. The International Energy Agency estimates that a typical AI-focused data centre can consume as much electricity as 100,000 households, although actual demand varies considerably according to the facility’s size, equipment and workload. Because such demand is concentrated in particular locations, the effect on local electricity networks can be much greater than the sector’s share of global power consumption suggests.

Cooling is another key consideration. Some facilities use significant amounts of water, particularly when they rely on evaporative cooling, but consumption cannot be generalised across all data centres. Research published by Lawrence Berkeley National Laboratory found that water use per workload can differ by more than 10,000 times, depending on factors including server efficiency, utilisation, cooling technology, climate and the water intensity of the electricity supply.

Facilities located near homes or commercial communities can also face scrutiny over noise from fans, chillers, cooling towers and backup generators. The World Health Organization says excessive environmental noise is associated with annoyance, sleep disturbance and wider health risks, although no measurements or evidence of harmful noise from the Bangkok sites have yet been released.

Backup diesel generators, commonly maintained to keep critical systems running during power interruptions, can produce nitrogen oxides, particulate matter, sulphur dioxide, carbon monoxide and hydrocarbons when operated. The investigation has not established what generators were installed at the Bangkok facilities or whether they produced unsafe emissions.

The same caution applies to other potential effects. Authorities have not presented evidence that the sites under investigation depleted local water supplies, disrupted the electricity grid, raised household bills or affected nearby property values.

Thailand tightens oversight of expanding industry

The investigation comes during a rapid expansion of data-centre investment in Thailand. Government figures show that 42 projects received investment-promotion approval between 2024 and 2026, with a combined value of about 750 billion baht.

The government has begun strengthening its screening framework to assess projects across four broad areas: benefits to Thailand, energy readiness, water availability and environmental effects.

Officials have said large data-centre investments should not transfer electricity or water costs to households and other users. Assessments are also expected to consider whether projects create skilled jobs, develop Thai engineers and technicians, and bring domestic small and medium-sized enterprises into their supply chains.

Environmental reviews are being developed to cover land use, urban planning, fire prevention, heat, noise and effects on surrounding areas. The government is also studying dedicated electricity tariffs, financial guarantees for power reservations, lower-water cooling systems and special water-management measures during the dry season.

A national Data Centre Business Policy Committee is intended to set standards for government agencies considering project approvals, licences and other authorisations. Its remit covers energy security, fair electricity prices, efficient allocation of water and land, public safety, data security and remedies for environmental or community harm.

Chaichanok said the number of Bangkok sites, their operators, the volume of any stored fuel and the possibility of foreign ownership would be disclosed only after agencies had completed their investigation. He did not provide a deadline for the findings.

Sources: Royal Thai Government, International Energy Agency, Berkeley Lab