Thailand’s Ministry of Finance was preparing to submit a draft seven-tier data centre policy to the Cabinet on 10 November, Finance Minister Ekniti Nitithanprapas said, according to Nation Thailand. The proposal would classify facilities by electricity demand and apply stricter requirements to those drawing more than 20 megawatts. The Data Centre Business Policy Committee endorsed the draft on 27 October. Cabinet consideration would be the next step for a plan that changes how developers seek approval for projects needing power and water.
Key points
- The draft places data centres in seven power bands, from 0–0.5 megawatts to more than 200 megawatts.
- Facilities in Tiers 5–7 would face tighter requirements on location, utility connections, environmental impact and benefits for Thailand.
- A government dashboard would bring approval information together, while existing and partly built facilities would receive eight to twelve months to meet Code of Practice standards.
- Published accounts give different figures for projects awaiting review or approval: more than 100 seeking 3 gigawatts, and 117 seeking more than 29.6 gigawatts.
Seven tiers turn on power demand
The draft’s first band covers facilities drawing 0–0.5 megawatts. Tier 2 runs from 0.5–5 megawatts, Tier 3 from 5–10 megawatts and Tier 4 from 10–20 megawatts. The remaining bands are Tier 5 at 20–50 megawatts, Tier 6 at 50–200 megawatts and Tier 7 above 200 megawatts. These are power-consumption categories, separate from the reliability tiers commonly used by the data centre industry.
Operators in Tiers 1–4 would face basic requirements and could locate facilities in commercial zones. The tighter standards for Tiers 5–7 would cover land use and site location, including oil stored for reserve generation, as well as connections to electricity and water networks. They would also cover environmental requirements under a Code of Practice and the economic and social benefits a project could deliver. The size of a proposed facility would therefore determine which set of minimum standards applies before it enters the approval process.
Thailand established the 21-member Data Centre Business Policy Committee in September to propose sector policies and standards, monitor impacts, report to the Cabinet and oversee implementation, the Bangkok Post reported. The committee’s work follows local concerns about development as well as demand for electricity. A September oil leak in Bangkok’s Rama IX area drew attention to an unauthorised data centre among homes, leading the Bangkok Metropolitan Administration to examine 47 data centres citywide.
Dashboard TH-DC would bring approvals together
The Ministry of Digital Economy and Society has been tasked with developing Dashboard TH-DC, a digital system bringing together information on permits and approvals from government agencies so that projects can be tracked consistently. Under the proposed process, operators would pitch their plans for review. A subcommittee would assess whether prospective sites can meet their water and electricity needs, while the review would consider supply-chain development and access to computing power for Thai small and medium-sized enterprises.
The government would give the 63 operating data centres and 20 under construction eight to twelve months to meet the new Code of Practice standards. Developments not yet licensed would fall under the rules for new projects. Nation Thailand reported that more than 100 new projects, together seeking 3 gigawatts, were waiting to enter the review process. The proposed standards thus reach beyond applications for entirely new sites: facilities already operating or being built would have a period in which to bring their operations into line.
The centralised application service would pre-screen proposals before they went to a committee, with applications initially accepted in rounds and projects selected through pitches, Mingtiandi reported. Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, said the proposed change would replace direct applications for electricity, water and Board of Investment incentives with an assessment of each project’s proposal and returns to the national economy. The policy committee has also asked the digital economy ministry to accelerate work on a dedicated law for the sector.
Thailand’s grid reserve faces a projected fall
Thailand’s Board of Investment had approved 57 data centre projects valued at about THB 811.4 billion ($24 billion) by 31 July, according to Mingtiandi. The publication put the separate pipeline awaiting approval at 117 projects seeking more than 29.6 gigawatts. National Economic and Social Development Council figures prepared for the policy committee’s first meeting also counted about 50 projects under construction with a combined demand of more than 5.4 gigawatts.
The same council material put Thailand’s reserve electrical generating capacity at about 12.1 gigawatts in mid-2026. The Electricity Generating Authority of Thailand predicts that reserve capacity will fall to about 1.8 gigawatts between 2028 and 2034 as an estimated 13 gigawatts of generation is retired. For developers seeking a grid connection, the draft’s site assessment and pitching rounds would place power availability within the government’s project-selection process.
The Data Centre Business Policy Committee will consider a separate proposal requiring 80 percent reuse of cooling-tower wastewater on 27 November, Mingtiandi reported.
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