Thailand is accelerating work on regulatory guidelines for data center businesses as investors await clarity on land use, infrastructure requirements and community safety standards. The Data Center Policy Committee is scheduled to meet and address outstanding issues, with a draft framework expected to take shape in the first quarter of 2027.
The Ministry of Digital Economy and Society is working with the Big Data Institute to develop the TH-DC Dashboard, which will consolidate information on investment projects and infrastructure requirements. Four subcommittees are also reviewing economic policy, data integration, infrastructure, land use and urban planning to establish common regulatory standards according to an article by Bangkokbiznews.
Nan Boonthida Somchai, Digital Economy and Society, Deputy Minister, revealed that the main challenge is determining how data centers should be classified under industrial and urban planning regulations. The classification will influence where facilities can be built and the conditions they must meet, particularly regarding electricity, water, telecommunications infrastructure and environmental safety.
Proposed community safety requirements include minimum distances between data centers and residential areas, schools, hospitals and temples, based on the volume of fuel stored on site. Facilities storing between 90,000 and 180,000 liters would need to maintain a distance of at least 100 meters, while those storing between 180,000 and 500,000 liters would require at least 200 meters. The proposals remain under review and would form part of a wider licensing assessment.
The government faces pressure to finalise the framework as projects worth more than 1 trillion baht (US$ 30 billion) are awaiting regulatory clarity, according to investment plans held by the Board of Investment. Affected projects include operational facilities, developments under construction that lack some required approvals, particularly for electricity use, and proposed investments that have yet to begin construction.
The new guidelines are not expected to apply retroactively to existing projects. However, operators must continue to meet existing legal requirements, including regulations covering fuel storage, electricity consumption and telecommunications connections.
The government is seeking to strengthen Thailand’s position as a regional digital infrastructure and AI hub, but prolonged regulatory uncertainty could prompt investors to redirect projects to other markets.
According to an ICT market analysis from Mordor Intelligence, Thailand’s ICT market is projected to grow from US$ 17.74 billion in 2025 to US$ 33.08 billion by 2031, at a 10.95 percent CAGR. Growth is driven by nationwide 5G expansion, hyperscale data-center investments, government cloud-first initiatives, Industry 4.0 modernization, rising cybersecurity demand, and fintech development.