Thailand plans competitive selection for new data centres
Thailand plans to assess new data centre projects on economic benefits while protecting existing investments from retroactive rule changes.
- Thailand is introducing a competitive selection process for approving new large-scale data centre projects.
- Under the new system, applicants will be assessed based on the economic benefits their proposals would bring to the country, rather than the previous incentive-based model.
- The new rules will not apply retrospectively to projects already under construction or awaiting operation, in order to protect existing investments and the investment climate.
Thailand is preparing a competitive approval process for new large-scale data centre projects, with applicants assessed on the benefits they would deliver to the national economy, while seeking to protect investments already under way from disruptive retrospective rule changes.
Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), outlined the proposed approach at Government House on October 27, 2026.
The framework would distinguish between operators whose facilities are under construction or awaiting opening and new applicants seeking permission to invest.
The proposed conditions were due to be discussed by the Data Centre Policy Committee that evening. Once conclusions were reached, they would be submitted to the Cabinet for acknowledgement.
New projects to compete on economic benefits
Under the proposed system, new applicants would undergo a revised assessment process overseen by a dedicated committee responsible for project approvals and overall supervision.
Applicants would have to present their plans and submit competing proposals through a structured selection process.
Danucha described the approach as a change to the investment incentive system. Operators had generally applied directly for electricity and water supplies or sought incentives from the Board of Investment (BOI).
The new approach would place greater emphasis on evaluating project proposals and the economic benefits they would bring to Thailand.
“This change in the criteria represents an overhaul of the incentive system,” he said. “Instead of operators applying directly for electricity, water supplies or BOI incentives, projects would be assessed and selected based on their proposals and the returns they would deliver to the national economy.”
Existing investments to be protected
For projects already under construction or awaiting the start of operations, the government’s guiding principle would be to avoid disrupting investments made under the previous framework.
Danucha explained that imposing new conditions retrospectively on investors who had already committed capital could harm the investment climate.
However, these projects could still be required to make limited improvements to operating practices, including noise and temperature controls.
Operators would be given approximately one year to upgrade their facilities before inspections were carried out.
Fuel storage approach aims to resolve siting constraints
Authorities have also discussed practical measures with the private sector to address restrictions affecting the storage of reserve fuel at data centres.
Danucha explained that some facilities needed to store more than 180,000 litres of fuel and faced legal requirements to maintain a distance of at least 200 metres from certain premises, including hospitals.
The approach discussed with operators would focus on managing the actual quantity of fuel stored on site, keeping it below 180,000 litres to address difficulties arising from the separation requirements.
