The Industry Ministry is drafting a landmark law aimed at regulating data centre investments in Thailand, as the country grapples with the environmental and infrastructural challenges posed by the sector's rapid growth.
Industry Minister Varawut Silpa-archa announced that the legislation will establish clear standards to prevent future problems, particularly those related to energy consumption, water usage and pollution.
Thailand currently lacks a specific legal framework for data centres, which are resource-intensive facilities consuming vast amounts of electricity and water to power and cool their servers.
Cooling systems have also been blamed for generating noise pollution in surrounding communities.
"Data centres are a new type of investment in Thailand, largely driven by foreign technology companies. The government has offered tax incentives to attract these investments," said Mr Varawut, stressing that the country must now ensure proper regulation.
At present, approvals for data centre projects rely on building control and land-use regulations, as the facilities are not classified as factories under existing laws.
Mr Varawut emphasised the need for new guidelines covering energy efficiency, water management, environmental safeguards and zoning rules.
"Future regulations must clearly define where data centres can be located, what standards they must meet, and which agencies will oversee them," he said.
Until specific legislation is enacted, government agencies cannot deny permits to operators who comply with existing building and land-use laws.
To address this gap, the Industry Ministry plans to work closely with the Energy Ministry, the Department of Public Works and Town & Country Planning, and local authorities to determine appropriate locations for data centres, including whether they should be allowed in city centres.
Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI), said that the government has intensified oversight of data centre investments amid growing interest from investors.
The BoI recently approved the creation of a panel tasked with comprehensively reviewing data centre projects.
Its mandate extends beyond energy concerns to include water usage, environmental impacts and economic viability.
"Data centres are critical infrastructure for the digital economy. Approvals must ensure the country is prepared in terms of energy, utilities and environmental management, while also delivering long-term benefits," Mr Narit said.
