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Thailand freezes construction of 49 data centers; new rules to be unveiled in a month

By: IDCNOVARegion: Southeast Asia
Thailand has suspended the construction of 49 data centers amid public concerns over high power consumption and other impacts on the community, Bloomberg reported on September 4, 2026. The announcement was made by Danucha Pichayanan, secretary-general of the National Economic and Social Development Council.

Danucha said the suspension would allow officials to develop new industry regulations for a more sustainable data center operating environment. The new regulations are expected to be announced in a month.

“Today’s decision doesn’t mean Thailand is closing the door to data-center investment because the industry is critical to the country’s competitiveness. We simply want clear and consistent standards in place to ensure the industry can grow sustainably,” Finance Minister Ekniti Nitithanprapas reportedly said.

Thailand will also introduce uniform oversight for data centers that are already operating and those under development, Danucha said.

In May 2026, the Board of Investment approved TikTok System (Thailand)’s data infrastructure expansion. According to BOI data, the government approved a total of 88 projects related to artificial intelligence and data centers, representing total investment of 886 billion baht (US$27 billion), during the first six months of 2026. This exceeded the 623 billion baht recorded for all of 2025.

Earlier, concerns emerged in Bangkok after three facilities were found to have been built next to a hospital, prompting the city to suspend construction of the three facilities.

Thailand is also considering raising electricity rates for large data center operators.