Thailand hopes to finalize its national rules for data center businesses by the first quarter of 2027, Deputy Digital Economy and Society Minister Nan Boonthida Somchai said in remarks published Wednesday. The delay leaves investment plans worth more than 1 trillion baht, or about $30 billion, waiting for regulatory clarity, according to several news sources citing Board of Investment data.
The biggest unresolved question is how data centers should be classified under Thailand’s industrial and urban planning laws, according to several news sources. That decision will determine where facilities can be built and what they must provide in electricity, water, telecommunications and environmental safety.
Four subcommittees are reviewing economic policy, data integration, infrastructure, land use and urban planning to set common standards. The Ministry of Digital Economy and Society is also working with the Big Data Institute on a dashboard that will pull together information on investment projects and their infrastructure needs.
Nan said the new rules won’t apply retroactively. Existing projects will remain subject to current laws, which already cover areas such as fuel storage, electricity use and telecommunications connections.
The first quarter target is well behind the government’s original schedule. On September 4, the newly formed Data Center Business Policy Committee, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, asked developers of 49 data centers under construction to voluntarily pause work. It also froze more than 117 projects that were waiting for permits or still under review by state agencies. At the time, 35 data centers were operating in Thailand.
Officials initially gave themselves about a month to write a national framework. In September, Danucha Pichayanan, secretary general of the National Economic and Social Development Council, said the rules were expected by mid October and would set requirements on facility size, power use and location.
The committee has made some progress since then. On October 1, it approved a separate legal definition for data centers so they’re no longer grouped under the existing large buildings category. Members also agreed to sort facilities into five size tiers, up from three, based mainly on how much electricity they consume. Officials had earlier proposed classifying sites that use 100 megawatts or more as hyperscale facilities, though that threshold was still subject to the committee’s review.
Community safety standards are also being worked out. Proposals under discussion would require data centers to keep a minimum distance from homes, schools, hospitals and temples, depending on how much fuel they store on site. Facilities holding between 90,000 and 180,000 liters would need to be at least 100 meters away, while those holding between 180,000 and 500,000 liters would need at least 200 meters. Those proposals remain under review.
The sector has grown quickly. The Board of Investment approved 88 artificial intelligence and data center projects worth about 886 billion baht, or roughly $27 billion, in the first half of 2026 alone. The board had already stopped approving new data center projects in April while the government worked to close gaps in what had been a fragmented oversight system.
Electricity supply remains one of the biggest constraints. The Energy Ministry’s draft Power Development Plan 2026 proposes planning for 8.8 gigawatts of data center demand, even though applications total 35 gigawatts. Ministry spokesman Pongpol Yodmuangcharoen has said many investors request far more electricity than they actually need. The Provincial Electricity Authority has said its current grid in the Eastern Economic Corridor can support 16 data centers at full capacity.
Ekniti has said the pause doesn’t mean Thailand is closing the door to data center investment, describing the industry as important to the country’s competitiveness. The government wants projects to bring jobs, income and technology to Thailand rather than simply providing space for servers. For future projects, he has outlined a competitive process in which investors would pitch the benefits they would deliver, including contributions to local incomes and the country’s net zero target.
The Data Center Business Policy Committee is scheduled to meet to address the outstanding issues, according to several news sources. Until the framework is finalized, investors behind more than 1 trillion baht in planned projects will be waiting for answers on where they can build, how much power they can secure and which safety standards they must meet. Prolonged uncertainty could push some of those investors toward other markets, according to several news sources.
