Thailand backs seven-tier framework for data centre projects
New data centre rules target speculative power reservations and prioritise jobs, Thai skills, local supply chains and clean energy.
- Thailand's Cabinet has endorsed a new regulatory framework that classifies data center projects into seven tiers based on their power consumption, ranging from under 0.5 MW to over 200 MW.
- The framework is designed to curb speculative reservations of electricity capacity by implementing a screening committee and financial security requirements for applicants.
- Future data center proposals will be assessed on broader contributions such as job creation, workforce development, and clean energy use, rather than solely on investment value.
- New rules include location restrictions based on power demand (projects over 20 MW must be in industrial estates) and the establishment of a "Data Center One Stop Service" to coordinate approvals.
Thailand’s Cabinet endorsed a new regulatory framework for data centres on November 10, 2026, introducing seven power-use categories alongside measures to curb speculative reservations of electricity capacity.
Future data centre investment proposals will be assessed on their contribution to jobs, workforce development, domestic supply chains and clean energy use, rather than investment value alone.
Seven categories determine data centre oversight
Danucha Pichayanan, secretary-general of the National Economic and Social Development Council and a member and secretary of the Data Centre Operations Policy Committee, outlined seven categories based on power demand. Regulatory oversight under the framework would cover facilities requiring 0.5 megawatts (MW) or more.
The seven data centre categories outlined by Danucha are:
- Below 0.5 MW.
- From 0.5 MW to below 5 MW.
- From 5 MW to below 10 MW.
- From 10 MW to below 20 MW.
- From 20 MW to below 50 MW.
- From 50 MW to 200 MW.
- More than 200 MW.
Danucha said data centre projects below 20 MW could be located in commercial zones, while those requiring 20 MW or more, covering categories five to seven, would have to be in industrial estates.
Screening targets speculative power reservations
A screening committee and financial security requirements would help filter out data centre applicants without genuine plans to develop projects, according to Danucha.
Danucha reported overlapping electricity requests for data centres from more than 110 applicants, totalling over 30,000 MW. Only about one-quarter of applicants were estimated to be genuine investors, with brokers and engineering, procurement and construction (EPC) contractors having reserved capacity in advance.
Ekniti Nitithanprapas, deputy prime minister and finance minister and chair of the Data Centre Operations Policy Committee, outlined three priorities: clearer and more transparent rules, allowing lawful operators to continue during the transition, and future investments that maximise benefits for Thailand.
Ekniti described data centres as essential infrastructure for the digital economy and artificial intelligence (AI), but noted that their high electricity and water requirements could affect the environment and communities. A lack of clear rules had led to fragmented approvals and reservations of electricity capacity for speculative resale.
The Ministry of Digital Economy and Society will establish a Data Center One Stop Service (OSS) to coordinate project screening and approvals, alongside a Data Center Dashboard showing data centre locations and project information across Thailand.
Ekniti said the framework would establish an internationally aligned definition of data centres and minimum standards covering environmental protection, town planning and resource use. Environmental requirements would be aligned with international standards.
Under the “Invest Tomorrow” priority outlined by Ekniti, new data centre investment assessments would consider employment, upskilling and reskilling Thai workers, participation by domestic suppliers, and clean energy use.
Environmental controls cover noise, heat and water
Danucha said an environmental code of practice (CoP) would cap backup-generator noise at 70 decibels at a data centre’s boundary and impose a 1–2°C limit on temperature increases from released heat. Operators would also have to use water recirculation systems and test water quality before discharge.
According to Danucha, data centres would generally not require individual environmental impact assessment (EIA) reports because they housed servers and did not have the severe environmental impacts associated with factories. Projects in industrial estates would, however, be subject to the estates’ EIAs.
One-year transition for previously approved projects
Danucha said data centre projects with construction permits or investment-promotion approval from the Board of Investment (BOI) issued before August 14, 2026, could proceed, with one year to meet the new environmental standards.
Data centre applications submitted after August 14, as well as new projects, would require an economic-value assessment by the screening committee before the BOI, electricity utilities and authorities responsible for construction permits could grant their respective approvals.
Narit Therdsteerasukdi, secretary-general of the BOI, reported that the agency had granted investment promotion to 57 data centre projects as of April. Of these, 17 were operating and 40 were in development.
Of the 40 data centre projects in development, about 20 had construction permits and were being built, while another 20 were preparing for investment, according to Narit.
Narit added that all approved data centre projects would enter the OSS system for review to ensure compliance with environmental standards and prevent problems for communities. New applications would undergo a comprehensive assessment of electricity and water efficiency, environmental management and economic benefits for Thailand.
