Following the suspension of 49 under-construction data centers in Thailand, local reports have tied it to DAMAC Digital Thailand’s BKK01 facility in Rama IX district which was testing its backup power system when diesel leaked into public drains, as one of the causes for the suspension.
Other reported causes included the building of three data center facilities near a hospital in Bangkok, as well as the official reasons given namely high electricity and water consumption, environmental impact, and public safety.
The oil spillage incident and the location of data centers in Bangkok exposed a regulatory loophole especially in safety and permitting, which local analysts and reports said led to the nationwide pause.
Data centres are currently not defined under any law in Thailand. Thus, some data centers have apparently been permitted as warehouses or office buildings hence avoided more stringent requirements for industrial facilities.
Industrial waste specialist General Environmental Conservation plc (Genco) was engaged to clean up the spillage. They deployed sandbags, cleaned oil from the drainage system, pumped out contaminated wastewater and sediment, and transported it for treatment and disposal.
Over 32 cubic meters of contaminated wastewater and sediment was pumped from external drains and the internal wastewater pit. The cleanup was successful with zero reading of VOC, H₂S, and flammable-gas threshold, meaning no toxic airborne chemicals and explosive risk.
Upon investigation, it was discovered that BKK01’s contractor had allegedly stored more than 200,000 liters of diesel without license.
Following the unprecedented freeze, the government has given operators about one month to submit detailed operational data. Meanwhile, an analyst listed several areas which are likely to be reviewed. Among them are: diesel storage limits, wastewater management, zoning near residential areas, noise and heat emissions and economic-benefit criteria.
Thailand’s Board of Investment approved 88 AI and data center projects worth about 886 billion baht (US$27 billion) — in the first half of 2026 alone.