Thailand moves to regulate data centres while supporting digital growth

Prime Minister and Interior Minister Anutin Charnvirakul on Friday (September 4) opened the first meeting of the National Data Centre Business Policy Committee at Government House, as Thailand moves to establish clearer rules for the rapidly expanding industry while supporting the country’s digital-economy ambitions.

Deputy prime ministers, the Bangkok governor and other committee members attended the meeting, which is intended to establish a systematic national policy framework and direction for the development of digital infrastructure.

Anutin said data centres were a critical part of the digital economy, providing the infrastructure needed to store and process information for future industries.

Thailand continues to attract interest from both domestic and international investors because of its strategic location and position as an economic hub within ASEAN, he said.

However, the rapid expansion of data centres also brings challenges because the facilities require substantial amounts of electricity, water and land, while raising environmental and cybersecurity considerations that the government must regulate in line with national laws and interests.

Government seeks balanced growth

“This does not mean that we are saying today that Thailand will no longer develop data centres. That is not the case,” Anutin said.

“What we need to do is put the industry in order. We must review the regulations and design an appropriate system so that the digital economy can expand in a balanced way, just as Singapore and Hong Kong have had to address similar issues.”

He asked the committee to establish a clear legal definition for data-centre businesses and develop an ecosystem that supports artificial intelligence and cloud services, helping Thailand remain competitive as technology evolves rapidly.

Concerns over improper permits

Anutin also raised concerns over data-centre developments that may not comply fully with existing laws.

He said the government had received reports of data-centre construction in Bangkok involving arrangements allegedly designed to reduce costs or the use of inappropriate permits to circumvent regulatory requirements.

The prime minister also highlighted what he described as speculative applications for electricity capacity, in which operators request more capacity than they may ultimately require.

Applications submitted to the Provincial Electricity Authority reportedly total nearly 20,000 megawatts, which Anutin said was comparable with the country’s overall electricity demand.

The scale of the applications has raised public concerns over the need for additional generating capacity, prompting Anutin to instruct the committee to tighten oversight and close legal loopholes while safeguarding the public.

Thailand targets green data-centre development

On investment promotion, Anutin stressed that Thailand should aim for more than simply hosting data-centre facilities.

The country should seek greater economic value through technology transfer and the development of Thai professionals, enabling domestic workers and businesses to participate more deeply in the growing AI, cloud and digital-infrastructure industries.

The government will also place greater emphasis on Green Data Centre standards and encourage operators to use renewable energy rather than relying primarily on fossil fuels.

Anutin said the approach should support Thailand’s Net Zero commitments while aligning the country’s digital-infrastructure development with international standards, including those associated with the OECD.

The first board meeting is therefore intended to establish a framework that allows data-centre investment to continue expanding while balancing economic growth with resource management, environmental responsibility, cybersecurity and public confidence.

Chadchart says laws lag data-centre growth as three of six sites approved

Bangkok Governor Chadchart Sittipunt has acknowledged that existing laws have not kept pace with the rapid growth of standalone data centres, saying clearer definitions and updated rules are needed as Bangkok reviews applications for six sites.

Speaking about the investigation into a data centre in the Rama IX area, Chadchart said the Department of Energy Business was examining the case.

He said the Bangkok Metropolitan Administration (BMA) had initially received no complaint concerning fuel storage at the site, although such a complaint might have been lodged with another agency in recent days.

The Pollution Control Department also inspected the site on Thursday (September 3), he said, adding that several agencies were now involved in determining the cause of the reported problems and whether the project complied with relevant requirements.

BMA has yet to issue Aor 6 permit

Chadchart said the BMA had not yet issued an Aor 6 permit, or permission to amend previously approved layouts, plans or specifications.

He said a building could not be opened for use solely on the basis of approval from the BMA, as permits or approvals from other agencies, including the Department of Energy Business, may also be required.

Any nuisance or disturbance arising during construction must also be assessed under the relevant laws, he added.

Bangkok has so far received applications involving six data-centre sites. Three have been approved, while the remaining three have yet to receive approval.

Chadchart said the applications had generally been submitted under the category of warehouses used as data centres.

He noted that data centres themselves were not new, as cloud and information-processing facilities had long existed within conventional office buildings. Reports suggesting that Bangkok had more than 40 data centres might therefore include smaller facilities located inside company offices and serving as internal data centres.

Approved sites awaiting further assessment

Asked whether the three sites already approved had encountered problems, Chadchart said those projects had received the necessary permissions relating to fuel storage.

Without approval from the Department of Energy Business, he said, the buildings could not be allowed to begin operating.

Some complaints had involved noise generated during tests of backup power-generation equipment. Certain companies had carried out such tests at night, prompting the BMA to investigate, while daytime testing generally caused less disruption.

However, operations at the three approved sites have currently been halted pending further assessment by the relevant agencies, he said.

The other three applications remain unapproved.

Legal definition of data centres under review

Chadchart said the September 4 meeting of the National Data Centre Business Policy Committee would discuss urban planning and, importantly, how a data centre should be legally defined.

Questions include whether a data centre should be subject to size thresholds, what specific requirements should apply, and whether building-control legislation needs to be amended.

The key areas requiring consideration include building-control law, city planning, energy-business regulations and environmental impacts.

Asked why three projects had previously been able to secure approval, Chadchart said standalone data centres had never been clearly defined under existing regulations.

In the past, data-centre functions were often incorporated into ordinary office buildings and handled under existing building and environmental impact assessment procedures.

As large standalone facilities began to emerge, however, some applications were submitted under the warehouse category because there was no specific legal definition covering data centres.

“The law may not have kept pace,” Chadchart said, noting that standalone data centres were a relatively new type of business and that countries around the world were having to modernise their regulatory frameworks accordingly.

Bangkok awaits expert guidance on zoning

On the question of where data centres should be located under Bangkok’s city plan, Chadchart said the BMA would need to hear views from several sectors.

He acknowledged that Bangkok itself did not yet have extensive specialist expertise in data-centre development.

The establishment of a national committee bringing together experts from different fields was therefore useful, he said, as it would allow the BMA and other agencies to consider a wider range of technical, environmental, safety and planning factors.

Chadchart asked the public to wait for the committee’s conclusions before decisions were made on future zoning and regulatory requirements.

He also said it was possible that standalone data centres could eventually be required to conduct their own environmental impact assessments.

Such a requirement could be introduced through legislation under the Ministry of Natural Resources and Environment, he added.