Introduction
In recent years, data centers have become one of the fastest-growing sectors of Thailand’s digital economy, driven by the rapid adoption of digital technologies. However, the operation of data centers comes at a substantial cost. Data center facilities consume significant amounts of electricity and water resources to support their operations. As the sector continues to expand, Thai authorities have increasingly expressed concerns regarding the potential impact of data center operations on the country’s energy security, particularly electricity supply, water resources, and environmental sustainability.
In response to these concerns, the Prime Minister, with the approval of the Cabinet, recently established the Data Center Business Policy Committee to formulate policies and coordinate governmental oversight of the sector. This development signals a broader trend toward enhanced regulatory scrutiny of data center investments and operations, with a focus on resource management, sustainability, and the overall benefits that such investments bring to Thailand.
Establishment of the Data Center Business Policy Committeeo
On August 13, 2026, the Prime Minister, with the approval of the Cabinet, promulgated in the Royal Gazette the Regulation of the Office of the Prime Minister on the Data Center Business Policy Committee B.E. 2569 (“Regulation“), which provides for the establishment of the Data Center Business Policy Committee (“Committee“). The Committee comprises deputy chairpersons from relevant sectors, including the Minister of Digital Economy and Society, the Minister of Interior, and the Minister of Energy, as well as ex officio members from relevant offices, such as the Secretary-General of the Board of Investment, the Secretary-General of the Energy Regulatory Commission, and the Secretary-General of the National Broadcasting and Telecommunications Commission.
The Committee’s main duties are to propose policies, standards, and frameworks governing the approval, licensing, and investment promotion of data center businesses to the Cabinet, and to monitor and assess the impact of data center operations. In proposing such policies, standards and frameworks, the Committee will mainly take into account the overall economic benefits to Thailand, the use of clean energy, energy security, environmental considerations, and the country’s carbon neutrality objectives.
In addition, under the Regulation, once the Committee proposes its recommendations and the Cabinet adopts a resolution accordingly, the relevant government agencies must implement such resolutions and report the results every three months.
BOI’s Response: Stricter Investment Screening for Data Center Projects
In response to the Regulation, the Board of Investment (“BOI“) issued a press release announcing that BOI will review its investment consideration framework and strengthen the assessment of data center projects seeking investment promotion to align with the policy direction of the Committee. The BOI emphasized that the objective is not to reject data center projects, but rather to assess whether such projects generate sufficient value and benefits for Thailand.
Meanwhile, it is worth noting that BOI has been updating its investment promotion requirements for data center projects on an ongoing basis. In March 2026, BOI introduced an additional requirement for applicants to submit a confirmation letter from the Office of the Energy Regulatory Commission. This requirement was subsequently replaced by a new requirement that the project must obtain approval from the subcommittee appointed by BOI to screen and review data center projects prior to the submission of an application for investment promotion. BOI issued an order appointing such subcommittee on 15 July 2026. The subcommittee comprises representatives from various government agencies, including the Minister of Energy, the Secretary-General of the Board of Investment, the Secretary-General of the Office of the National Water Resources, the Secretary-General of the Energy Regulatory Commission, and the Secretary-General of the Digital Economy and Society Commission, totaling 22 positions.
Further Regulatory Measures to Watch in the Data Center Sector
In addition to the BOI, other regulators have also shown signs of increasing oversight of the data center sector. In particular, the National Broadcasting and Telecommunications Commission (“NBTC“) is considering proposing five new licensing criteria for both new and existing data center operators, covering matters such as zoning requirements, verification of utility service agreements, dedicated telecommunications infrastructure, e-waste management and clean energy obligations, and local content requirements. NBTC is also considering reclassifying data center businesses from a Type 1 to a Type 3 telecommunications business. A Type 3 telecommunications business is applicable to operators that own their own network infrastructure and is subject to a Thai majority ownership requirement. The proposed change is reportedly targeted to take effect within 2026.
Local authorities are also taking a more cautious approach. The Bangkok Metropolitan Administration has reportedly suspended further approvals for new large-scale data center projects in Bangkok pending revision of the applicable rules, reflecting concerns that such projects may need a more specific approval framework covering land use, safety, utility consumption, backup fuel storage and environmental impacts.
Similarly, energy-related measures are expected to remain central to the emerging framework. Following the resolution of the National Energy Policy Committee regarding electricity measures, several initiatives relevant to data center operators have been introduced, including proposed amendments to regulations governing the Power Development Fund to allow additional funding sources from data center electricity users, the extension of Direct Power Purchase Agreement (Direct PPA) arrangements through the Third Party Access (TPA) framework, the establishment of a separate electricity tariff category, and requirements for large-scale data centers to provide electricity network usage security deposits and prepare water management plans.
It remains to be seen how the establishment of the Committee will shape future policies and regulatory requirements applicable to data center businesses in Thailand. However, recent developments suggest a trend toward closer governmental scrutiny of the sector, particularly in relation to energy consumption, water resource management, environmental sustainability and the overall benefits that data center projects bring to Thailand. We will continue to monitor developments and provide updates as further guidance becomes available.
If you have any queries or need clarifications on the above, please contact our team set out on this page.
For regional data centre matters, please see Rajah & Tann Asia’s Data & Digital Economy Practice for more information.
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