Thai Cabinet to receive seven-tier data centre plan based on power use
The proposal divides data centres into seven tiers by electricity use and sets tougher standards for larger sites, with the first new approvals possible in December.
- The Thai Cabinet is set to review a new draft policy to regulate data centres by classifying them into seven tiers based on their electricity consumption.
- The seven tiers range from Tier 1 (0–0.5 megawatts) for smaller facilities to Tier 7 (over 200 megawatts) for the largest operations.
- Higher-power data centres (Tiers 5-7) will face stricter minimum standards regarding site location, utility connections, environmental impact, and economic benefits.
- The policy also aims to streamline government approvals through a single digital dashboard and gives existing data centers 8-12 months to comply with the new standards.
After the Data Center Policy Committee endorsed the draft policy on Tuesday (October 27, 2026), Finance Minister Ekniti Nitithanprapas said the Ministry of Finance was preparing to submit the proposed rules to the Cabinet on Tuesday (November 10).
The draft aims to regulate data centres more systematically and balance efforts to attract investment in artificial intelligence (AI) with the need to protect resources and safeguard social interests.
The draft policy covers three main areas.
1. A single dashboard for government approvals
The Ministry of Digital Economy and Society has been tasked with developing Dashboard TH-DC to bring together information on approvals and permits from all government agencies so they can track projects consistently.
2. Seven tiers based on electricity use
Data centres would be grouped into seven tiers according to their power demand, with requirements tailored to the size of each project.
- Tier 1: 0–0.5 megawatts
- Tier 2: 0.5–5 megawatts
- Tier 3: 5–10 megawatts
- Tier 4: 10–20 megawatts
- Tier 5: 20–50 megawatts
- Tier 6: 50–200 megawatts
- Tier 7: more than 200 megawatts
3. Tighter minimum standards in four areas
The proposed standards cover site location and land use, including the storage of oil in reserve for power generation, connections to electricity and water networks, environmental requirements under the Code of Practice (CoP), and economic and social benefits.
Lower-power facilities in tiers 1–4 would be subject to basic requirements and could be located in commercial zones.
Higher-power facilities in tiers 5–7 would face stricter requirements.
The government would give the 63 data centres already operating and the 20 under construction 8–12 months to meet the Code of Practice standards.
Projects that have yet to obtain a licence would be treated as new projects.
More than 100 new projects, with a combined power demand of 3 gigawatts, are waiting to enter the review process.
A subcommittee will assess whether potential sites can meet the projects’ water and electricity needs.
Operators will be able to pitch their plans for review.
The review will consider the benefits for Thailand, including the potential to develop supply chains and give Thai small and medium-sized enterprises (SMEs) access to computing power.
The first new approvals could come as early as December 2026.
