Thailand's cabinet has approved a new regulatory framework for the data center industry, establishing operating standards and a licensing system that covers facilities with power capacity of 0.5 megawatts and above, as the government moves to bring order to a sector that has expanded rapidly over the past two to three years without unified oversight.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said after the cabinet meeting on November 10 that the policy tasks the Ministry of Digital Economy and Society with establishing a one-stop service center and an evaluation committee to coordinate project approvals and set enforcement rules across relevant agencies. Approved operators must meet minimum standards and deliver maximum benefit to the country. Data centers are critical infrastructure for artificial intelligence and the digital economy, Ekniti said, but they consume substantial electricity and water and can affect surrounding communities. Previously, Thailand lacked clear regulatory rules, with each agency approving projects separately, leading to problems including investment promotion applications, early reservation of power quotas for resale, and premature applications for establishment and construction permits. The prime minister established a dedicated committee to formulate unified rules.
The policy has two main objectives: providing certainty for investors so that companies genuinely creating national benefit can operate sustainably, and reassuring the public through environmental, community and siting oversight. The cabinet requires the Ministry of Digital Economy and Society to create a "TH-DC Data Dashboard" disclosing the number and location of data centers in Thailand, classified by power capacity in line with international standards. Previously, data storage facilities for banks, enterprises, applications and social media were all grouped under the single term "data center." For new investments, approvals will no longer be based solely on investment value but will also consider job creation, upgrading of Thai workforce skills, income growth for Thai citizens, linkages to domestic industrial supply chains, and clean energy use. The government will reference Singapore's approach in requiring investors to submit competitive proposals on job creation and the introduction of technology and AI supply chains. New projects must undergo comprehensive assessment covering environmental impact, water and power efficiency, and contribution to the broader economy.
Danucha Pichayanan, secretary-general of the National Economic and Social Development Council and secretary of the data center operating policy committee, said the regulatory scope covers projects of 0.5MW and above, while smaller facilities typically located within institutions or banks have limited impact. Projects are divided into seven tiers: below 0.5MW; 0.5MW to below 5MW; 5MW to below 10MW; 10MW to below 20MW; 20MW to below 50MW; 50MW to below 200MW; and 200MW and above. Projects of 20MW and above will face stricter supervision. Projects in tiers two through four, below 20MW, must comply with a code of practice covering noise, temperature and power efficiency, with detailed rules to be published for public consultation. On siting, projects below 20MW may be located on commercial land, while those of 20MW and above may only be situated on industrial land.
Regarding environmental impact assessments, Danucha explained that data centers primarily involve installing servers, computers and air-conditioning systems within buildings and, under EIA criteria, are not classified as projects causing serious environmental impact, so they generally do not require a standalone EIA. The code of practice will stipulate that backup generators used during outages must not exceed 70 decibels at the project fence line, temperature increases around buildings must not exceed roughly 1 to 2 degrees Celsius, water quality must be controlled before discharge from cooling systems, and projects located within industrial estates must comply with estate EIA requirements. For projects that obtained construction permits or Board of Investment promotion approval before the relevant rules were published in the Royal Gazette on August 14, 2026, the cabinet will allow continued progress, with the one-stop service center verifying legality and granting about one year to adjust to code of practice requirements. Enterprises that have invested lawfully will retain their existing rights but must meet the new minimum standards, particularly environmental and public safety standards, within the specified period.
For projects applying for construction permits after August 14 and new market entrants, an evaluation committee under the one-stop service system will review applications to screen out speculators or intermediaries reserving power and water resources without genuine investment. Only after approval will the Board of Investment, electricity authorities, water supply agencies and construction permit issuers process related licenses based on the review results. The unified approval process will give the government a complete picture of all operators, whereas previously information was scattered across agencies and the government could see only about 90 percent of the market. On power resources, more than 110 applicants had submitted requests totaling 30,000MW of demand, but only about a quarter were likely genuine investors. One reason is that large platform developers had multiple engineering, procurement and construction contractors compete to prepare power and water resources, causing projects actually requiring 100MW to be repeatedly declared as 400MW. The evaluation committee and a financial guarantee mechanism will help eliminate such duplicate reservations, with specific deadlines and conditions to be further refined through consultation.
Narit Therdsteerasukdi, secretary-general of the Board of Investment, said that as of April this year the BOI had approved 57 data center projects for investment promotion privileges, of which about 17 are already operational. Of the remaining 40, twenty have obtained construction permits and twenty are preparing investment. Multiple agencies had previously paused projects while awaiting policy clarity. With the cabinet's approval of the new standards, these projects will be submitted to the BOI board and the one-stop service center for review under the new rules to ensure they do not cause environmental problems.
Thailand Cabinet Approves New Data Center Regulations Requiring Licensing for Projects of 0.5MW and Above
By: IDCNOVARegion: Southeast Asia