Bangkok Freezes New Data Centre Licences
On Wednesday, Bangkok governor Chadchart Sittipunt announced that the Bangkok Metropolitan Administration (BMA) will not issue any new licences for large-scale data centres in the capital, citing outdated regulations and concerns over the facilities' long-term impact on resources and the environment. The BMA had received requests to build six large-scale data centres; three were approved before the freeze, including Edgnex, a joint venture between Dubai-based developer Damac Group and Thai IT services provider Proen Corp, and Telehouse, operated by Japanese telecoms company KDDI, both on Rama IX Road. The remaining three requests have been shelved pending a review of the rules governing the sector.
Chadchart said around 30 to 40 data centres already operate in Bangkok and have not caused measurable harm to resources, safety or the environment so far, but he wants clearer rules in place before approving further growth. Existing regulations do not properly define what a data centre is; permits have historically been issued under conditions written for warehouses, without the city-planning or factory-specific oversight that facilities of this scale would typically require.
Part of a Wider National Push to Rein In AI-Driven Growth
The Bangkok freeze mirrors a broader shift in national policy as Thailand grapples with a wave of AI-linked investment. The Board of Investment approved 26 data centre projects worth almost 500 billion baht in 2025 and eight more worth over 160 billion baht so far in 2026, but officials have since moved from prioritising the volume of investment to screening projects against four criteria: energy and water readiness, environmental protection, and tangible benefits to the Thai economy, such as developing local AI talent.
Large investors must now provide a bank guarantee of 4.5 million baht for every megawatt of electricity they reserve, while regulators consider a dedicated, higher electricity tariff for data centres and are mapping power and water availability to steer new projects away from the already-strained Eastern Economic Corridor. The National Broadcasting and Telecommunications Commission is also planning to upgrade data centre operating licences to a stricter category used for telecoms network providers, citing concerns that the fast-growing sector could otherwise be exploited by illicit operators. Thailand's data centre market is projected to grow by nearly 28% a year through 2031, expanding roughly fourfold in value.
