The Thailand Board of Investment (BOI) has approved four data center projects worth a combined 100 billion baht (US$ 3.1 billion) in value, the board says in a statement yesterday. The four are a 12MW facility by Telehouse (Thailand) Co., Ltd., a subsidiary of Japan’s KDDI Corporation, for 7.55 billion baht; a 80MW facility by Vistas Technology Co., Ltd., a subsidiary of China’s ZDATA Technologies Co., Ltd. and its Singapore-based unit ZDATA Cloud Technology Pte. Ltd., for 9.09 billion baht; a 84 MW facility by NextGen Data Center and Cloud Services Co., Ltd., a subsidiary of Dubai-based DAMAC Digital, for 26.7 billion baht; and a 200MW facilty by Zenith Data Center and Cloud Services Co., Ltd., a related company, for 54.9 billion.
The board also approved new conditions and adjustments to the promotion conditions for data center investments to ensure efficient resource utilization and to encourage the transfer of technology and expertise to Thai personnel. Under the revised requirements, investments in data centers outside the Eastern Economic Corridor (EEC) area will be eligible for more incentives to encourage investment in those regions.
Other conditions include requirements related to data center construction and service standards, the Power Usage Effectiveness (PUE), and efficient water management measures. Projects are also required to submit a plan that creates tangible benefits to Thailand, such as providing training, developing joint curriculum with educational institutions, conducting research and development, enhancing the skills of Thai SMEs, or supporting the domestic supply chain. The proposed plan must be fully implemented before the project can exercise its corporate income tax (CIT) exemption benefits.
Regarding the issue of land availability, the board has agreed to expedite the environmental impact assessment (EIA) approval process for industrial area development projects including data centers.
In addition, the BOI agreed to streamline the approval of six priority licenses as part of the government’s “Quick Big Win” action plan to improve the investment climate, reduce procedural delays, and deliver faster solutions on critical issues including power availability, industrial land access, and the handling of visas and work permits for foreign experts.
It also approved measures to speed up investments worth US$ 9.2 billion that had been delayed, as part of an initiative started by the agency last month.
“This will strengthen investor confidence in Thailand’s investment framework and contribute to increased employment and broader economic development,” said Narit Therdsteerasukdi, Secretary General of the BOI.