Cabinet approves new data centre rules

The cabinet has approved new regulations governing data centre businesses in Thailand, including a centralised approval system and noise and heat controls.

The regulations aim to ensure that data centre investments deliver maximum benefits to Thailand while addressing environmental and community concerns, Deputy Prime Minister Ekniti Nitithanprapas said on Tuesday.

The Ministry of Digital Economy and Society (DES) has been tasked with establishing a one-stop service centre and a screening committee to oversee approvals and set requirements for relevant agencies.

Mr Ekniti said data centres are essential infrastructure for artificial intelligence (AI) and the digital economy, but their substantial electricity and water consumption could affect local communities.

Previously, approvals were handled separately by different agencies, creating problems such as speculative reservations of electricity capacity for resale to data centre developers, and overlapping applications for investment promotion, construction and utilities.

The government will also introduce a “TH-DC Dashboard”, a centralised, real-time monitoring and data-collection system for the data centre industry.

Under the new framework, investment applications will be assessed not only on their financial value but also on job creation, skills development for Thai workers, income generation, links with domestic supply chains and the use of clean energy.

Investors will be encouraged to compete by offering commitments to employ Thai workers and integrate local businesses into technology and AI supply chains, following an approach adopted in Singapore.

Data centres will be classified into seven categories according to electricity consumption: below 0.5 Megawatts, 0.5MW to 5MW, 5-10MW, 10-20MW, 20-50MW, 50-200MW, and 200MW and above.

Stricter rules would apply to facilities consuming 20MW or more. Facilities below 20MW must follow environmental codes of practice, with detailed requirements to be finalised after a public consultation.

In terms of location, facilities consuming less than 20MW may operate in commercial zones, while those using 20MW or more must be located in industrial zones.

Environmental standards

Data centres would generally not be required to conduct an environmental impact assessment (EIA), said Danucha Pichayanan, secretary-general of the Office of the National Economic and Social Development Council.

The facilities primarily consist of buildings housing servers, computers and cooling systems and are not considered to have severe environmental impacts under existing EIA criteria, he said.

However, the codes of practice will impose environmental controls, including limiting noise from backup generators to no more than 70 decibels — slightly quieter than a vacuum cleaner — at project boundaries.

As well, temperature increases in nearby areas would be capped at 1-2 degrees Celsius, whole cooling water must be recirculated and quality tested before discharge.

Data centres at industrial estates, meanwhile, must comply with the estates’ existing EIA requirements.

For the transitional period, the cabinet agreed that projects holding construction permits or receiving investment promotion from the Board of Investment (BoI) before Aug 14, 2026, may proceed. The one-stop service centre will verify their legal status and allow operators around one year to comply with the new requirements.

Existing investors who have complied with the law will retain their previous rights but must upgrade their operations to meet the new minimum environmental and public safety standards within the specified period.

Projects applying after Aug 14, as well as new operators, must undergo screening for the authorities to exclude speculators and brokers who reserve electricity and water capacity without genuine investment plans.

BoI secretary-general Narit Therdsteerasukdi said the agency had approved investment promotion for 57 data centre projects as of April. Seventeen projects are already operational, while the remaining 40 comprise 20 projects that have obtained construction permits and another 20 still preparing for investment.

All projects would be reviewed by the BoI board and the one-stop centre under the new criteria following the cabinet’s approval.