Thailand Rethinks Data Center Strategy to Maximize National Benefits

Data centers are transitioning from a technology business into critical infrastructure for the modern economy, supporting cloud services, artificial intelligence, data processing, digital finance, e-commerce, smart manufacturing, and government services. Yet rapid growth has forced Thailand to ask how much national resources these massive investments will consume and what Thai people will gain in return.

According to the Board of Investment, between 2024 and 2026, 42 data center projects received investment promotion approval with combined IT load of 3,400 megawatts and total investment of 750 billion baht. Investors include Thai, Chinese, American, Emirati, Japanese, and other companies, reflecting Thailand's emergence as a regional digital infrastructure hub.

The government is clearly shifting strategy from seeking investment to selecting projects that benefit the country most. A major turning point came when the government established a Data Center Business Policy Committee on August 5, 2025, chaired by the Deputy Prime Minister with the Board of Investment secretary-general as a member. In its first meeting, the board temporarily suspended 166 nationwide data center projects to establish new standards. This includes 49 projects under construction and 117 awaiting permits. The review will examine infrastructure, energy, water, site selection, security, environment, and economic returns.

Nucha Pichayanant, secretary-general of the National Economic and Social Development Council, stated the government is building a centralized database to see the full picture of data centers across Thailand rather than having agencies evaluate only their own projects. This is not closing the door to data centers but pausing to establish new rules before growth outpaces infrastructure capacity.

Electricity costs must not burden ordinary citizens. Data centers require continuous operation and high reliability across processing systems, cooling systems, and backup power. The 3,400 megawatt IT load from 42 promoted projects represents genuine electricity demand that the power system must support. The Energy Ministry has signaled that data centers, as major electricity users, should bear responsibility for costs of power procurement and network expansion. Energy Minister Anucha Prom-pant previously outlined plans for a data center-specific electricity pricing structure to better reflect the sector's actual costs.

These guidelines are being linked to defining data center electricity user categories and requiring guarantees for power usage, making operators responsible for infrastructure costs and reducing the risk of burden shifting to other consumer groups.

Water usage cannot be overlooked. Some data center cooling systems require significant water to manage temperatures, while Thailand must balance water needs across agriculture, industry, and public consumption. The Board of Investment's new criteria will prioritize water use efficiency, water sources, cooling technology, water recycling, and related considerations.