Thailand plans stricter data centre rules over power and water use
Thailand is drafting new data centre regulations to control resource use, introduce zoning and prevent pressure on power and water supplies
- The Thai government is drafting a new regulation to manage the significant power and water consumption of data centers, establishing a new committee to oversee the sector.
- The move is a response to challenges in resource planning, where operators over-reserving water and a lack of a centralized licensing process have made it difficult to manage national resources.
- The new rules will apply differently to existing, under-construction, and future data centers, with new projects facing the most comprehensive requirements on resource use.
- To better manage resources, the government is also considering zoning measures to direct new data centers to locations with more suitable infrastructure and less competition for water.
Thailand drafts data centre rules to manage power and water demand
The Thai government is drafting a new regulation to oversee data centre operations, aiming to manage the sector’s impact on national resources and improve control over investment-related risks.
A source from the Government House said the planned Prime Minister’s Office regulation would allow authorities to monitor data centre activities more comprehensively, particularly their use of national resources such as electricity and water.
Once the regulation is issued, a new legally empowered committee would be established to specifically supervise the data centre sector, including approvals, permissions, monitoring and assessments of potential impacts from projects operating in Thailand.
Resource planning challenges emerge
The move follows a government review of current and planned data centre investments, which found challenges in allocating and planning resources to support the sector’s expansion.
The source said data centre operators place strong emphasis on system reliability, which depends heavily on sufficient electricity and water supplies. The business requires large amounts of electricity and also uses water for cooling systems.
“Some investors planning data centres in the EEC have signed overlapping water reservation agreements with several agencies, including East Water, Wong Siam Construction and the Provincial Waterworks Authority, at the same time to ensure sufficient water for cooling systems,” the source said.
“This has resulted in water demand figures appearing higher than actual needs, making it difficult for the government to accurately plan resource allocation,” the source added.
The government also identified regulatory gaps, as data centres are currently not classified as a specifically controlled business with a single clear licensing process.
Applications and approvals have been handled through different channels, including the National Broadcasting and Telecommunications Commission (NBTC), the Board of Investment (BOI), or direct agreements with water authorities for additional supplies.
“Previously, permission for data centre operations was not centralised and the business did not require a specific licence. Some operators even acquired former entertainment venues in the Rama 9 area and converted them for data centre investment because the existing infrastructure was suitable,” the source said.
Three groups to face different requirements
The planned regulation will cover three categories of data centre operators:
- Existing operators: Authorities will conduct audits and assessments, focusing on impacts from water use, temperature management and noise levels.
- Approved projects under construction: Additional requirements will be introduced to reduce potential impacts during construction and future operations.
- Future applicants: New projects will face full regulatory requirements, including rules on water use and reserves to ensure supplies are balanced with the needs of other sectors.
The source said particular attention would be given to the Eastern Economic Corridor (EEC), where water allocation must be balanced among industrial users, agriculture and households.
Government considers data centre zoning
The government is also considering zoning measures for data centre locations, with a possible shift away from concentrating new facilities in the EEC.
One proposed location is near the Mae Moh mine area in Lampang province, where infrastructure is considered suitable due to large reservoirs originally developed for power generation.
The source said the location could reduce competition for water resources used by households while supporting future data centre development.
If the area is developed as a data centre hub, the government would invest in digital infrastructure, including high-speed fibre optic networks for data transmission.
The source said better location planning would help improve national resource management and reduce long-term conflicts over shared resources between households, industries and data centre operators.
