- Thailand has frozen 166 data center projects pending new national rules
- Officials found major gaps in data on existing data centers
- Large data centers are putting new pressure on water supplies
Thailand has halted 166 data center projects while officials work on new rules for electricity, water, locations, safety, and economic returns.
The pause covers 49 facilities already being built and another 117 projects still waiting for approval from government agencies.
Officials say the review aims to keep attracting investment while ensuring data centers provide jobs, technology gains, and useful services for Thailand.
Thailand puts data center growth under review
The decision followed a recent meeting of the national data center policy board, which ordered four groups to draft standards within one month.
Four subcommittees will each examine a different area: economic benefits, infrastructure needs, site and location standards, and environmental protection.
The review comes after agencies found limited information about the country’s total data center activity, including facilities already running and projects awaiting approval.
Information from 16 government bodies showed that 35 data centers were operating, with 11 receiving investment support through Thailand’s Board of Investment.
Another 24 facilities gained approval through other routes, while several smaller centers were operated by financial institutions.
The government now wants one central system showing project locations, approval status, electricity sources, water supplies, planning rules, and other key details.
That system would allow agencies to examine the combined effects of multiple facilities instead of reviewing each project through separate approval channels.
Bangkok has also begun checking existing sites, with six projects seeking approval and each requiring between 9 MW and 23 MW of power.
Three received approval and began operations from 2022 through 2024, while the remaining applications will stay frozen until national standards are ready.
Water, power, and economic gains shape new rules
The planned rules will cover electricity demand, water use, site selection, construction safety, backup fuel storage, environmental effects, and distance from nearby buildings.
Officials are also reviewing whether facilities using more than 2 MW should face rules similar to those applied to industrial businesses.
Large centers need constant power and significant water for cooling, creating concerns about pressure on local networks and supplies.
The government also wants prices for water and electricity to account for direct and indirect costs linked to large facilities.
That approach is intended to prevent households and other businesses from carrying costs tied to data center resource use.
Future projects could face a competitive approval process that weighs employment, technology transfer, clean energy use, and lower greenhouse gas emissions.
Prime Minister Anutin Charnvirakul said data centers matter to Thailand’s economy, although the government lacked complete information about existing facilities and planned developments.
The government is now seeking full details on data centers so it can develop laws that will guide future investment decisions.
Rather than expanding server capacity without assessing their demand, Thailand wants to gain more value from incoming projects.
The pause does not signal an end to Thailand’s data center ambitions, since officials continue seeking investment while examining how growth should proceed.
