Thailand requests pause on 49 data center builds for new regulatory framework

Government Requests Construction Pause

The Thai government has asked data center operators to halt 49 ongoing construction projects. This request comes as the nation prepares to establish a new, comprehensive regulatory framework for data centers. The current legal landscape for data centers in Thailand is limited, leading to issues such as inappropriate zoning and a lack of specific guidelines.

Addressing Environmental and Zoning Concerns

The initiative is driven by growing complaints regarding data centers' power and water consumption, mirroring concerns seen globally. The government aims to create unified legislation to address these environmental impacts and rectify legal voids, such as data centers being zoned as warehouses in sensitive areas like next to hospitals.

Legislative Timeline and Enforcement

Agencies were tasked with compiling information on current and future data centers during the week leading up to September 11. Following this, the government expects to draft new regulations within approximately one month. While the request to pause construction is not legally enforceable, the forthcoming legislation will apply retroactively to ongoing projects, with an adjustment period for those already in progress. New builds will need to comply from the outset.

Industry Impact and Future Compliance

The National Economic and Social Development Council (NESDC) secretary-general, Danucha Pichayanan, clarified that the government lacks the power to legally suspend construction. However, the retroactive application of new laws means companies proceeding with builds might need to adapt to future requirements. The new legislation is anticipated to cover aspects like power consumption, closed-loop cooling, and water-surplus guarantees, indicating the areas where builders will need to ensure compliance.