Thailand plans to impose a requirement for a bank guarantee or collateral to secure power purchases for data centers and other large users of electricity, according to local paper, Bangkok Post.
The regulation, which initially targeted data centers, has already been drafted by the Energy Regulatory Commission (ERC) and is currently pending approval by the new government including the size of the guarantee, the paper said, quoting energy officials.
Several reasons were cited for the new regulation, the main one being to ensure investors follow through on commitments to buy electricity from state utilities such as the Provincial Electricity Authority, and avoid stranded or underutilised power infrastructure should the investors change their mind and shift to other countries.
“We want to make sure investment in power plants and transmission lines, which require massive spending, can generate revenue,” Wattanapong Kurovat, director of the Energy Policy and Planning Office, reportedly said.
The good news is that the rule does not apply retrospectively meaning projects already approved by the Board of Investment (BoI) are exempt. It however applies to data centre operators participating in the government’s pilot direct power purchase agreement scheme. The scheme allows them to purchase electricity directly from private power producers rather than through state utilities.
Investors are apparently willing to comply, provided the electricity supply remains sufficient for their operations, an energy official who declined to be named, reportedly said.
Meanwhile, BoI secretary-general Narit Therdsteerasukdi reportedly said the board supported the regulation if it ensures reliable power distribution, but said the guarantees should not impose excessive burden on investors.
In 2025, the BoI received 36 data centre proposals worth 728 billion baht from the UK, Singapore, Thailand and Japan. It is currently in the midst of reviewing for approval 40 large electricity-consuming projects.