The Thai cabinet has approved a draft Prime Minister's Office Regulation to establish a Data Centre Business Policy Committee, a move that signals a significant shift in how the kingdom will govern its rapidly expanding data center sector. The approval, reported by local media last week, comes as Thailand positions itself as a regional digital hub while grappling with the energy and environmental implications of large-scale infrastructure development.
The new committee is designed to balance investment promotion with growing concerns over energy security, water resources and environmental protection, according to cabinet spokesperson Rachada Dhnadirek. "We will see to it that data centre businesses do not adversely affect the country's energy security or water resources," she reportedly said, underscoring the government's intent to align industry growth with national sustainability goals.
Once the regulation takes effect, the committee will be responsible for proposing the policy, standards and operating framework that state agencies apply when approving, licensing or providing services to data centre operators, according to Bangkok-based legal firm Dej-Udom & Associates. The body will also study and report the sector's impact to the Cabinet, giving it a central role in shaping the future regulatory landscape.
More significantly, the committee's stated objectives "read as a preview of future approval criteria," the legal firm noted. These criteria include clean-energy use, energy security and fair pricing, fair and efficient allocation of water and electricity, town planning, fire safety, national data sovereignty, prevention and remediation of environmental and community impact, and carbon neutrality. Prime Minister Anutin Charnvirakul will appoint a deputy prime minister to chair the committee, supported by the ministers of digital economy and society, interior and energy, along with up to three external experts.
The regulatory shift comes at a critical juncture for Thailand's data center market. Currently, data centers are approved and regulated based on building control and land-use regulations, as they are not classified as factories under existing laws. A new law governing data centers is being drafted, and the committee's formation is widely seen as a precursor to more comprehensive legislation. Dej-Udom & Associates noted that the draft regulation will only take effect upon publication in the Royal Gazette, meaning it "imposes no licence condition today. Its value now is as a clear signal of the criteria on which future approvals will turn."
The industry's explosive growth in Thailand underscores the urgency of establishing a coherent governance framework. The country approved 746 billion baht of investment into the digital sector last year, most of which came from data centers. In the first quarter of 2026 alone, data centers accounted for most of the record investment applications exceeding 1 trillion baht. The Ministry of Commerce has issued 1,145 permits for AI data centre businesses, with more than half located in Bangkok and the remainder spread across Nonthaburi, Pathum Thani, Phuket, Chon Buri, Nakhon Ratchasima, Rayong and Khon Kaen provinces.
For stakeholders planning data center projects in Thailand, the legal firm advises that the committee's stated criteria should be treated as a template for future Board of Investment, licensing and utility approvals. Companies will need to build clean-energy, water, siting and data-sovereignty readiness into their project planning now, as these factors are likely to become mandatory requirements rather than optional considerations. The establishment of the oversight body marks a maturation of Thailand's approach to its digital infrastructure, moving from a laissez-faire model toward a more structured and sustainability-focused regulatory regime.
Thailand to Establish New Oversight Body for Data Center Industry
By: IDCNOVARegion: Southeast Asia