Thailand freezes 49 data centres as resource fears escalate

BANGKOK – Thailand’s embrace of data centres hit a speed bump after the government suspended the construction of 49 server farms as public concerns about the power-hungry facilities’ impact on communities intensified.

The projects were halted to give officials time to develop new industry regulations, expected to be announced in a month, Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, said at a news briefing on Sept 4.

Danucha spoke after the first meeting of Thailand’s data centre supervision commission, led by Finance Minister Ekniti Nitithanprapas.

“Today’s decision doesn’t mean Thailand is closing the door to data centre investment because the industry is critical to the country’s competitiveness,” Ekniti said. “We simply want clear and consistent standards in place to ensure the industry can grow sustainably.”

Thailand will establish uniform oversight of data centres in operation, as well as those being developed, Danucha said.

Governments the world over are tightening oversight of data centres as the rapid adoption of artificial intelligence has led to a surge in such facilities.

Global data centre spending is set to reach US$31.6 trillion (S$40 trillion) through 2050 to meet the world’s growing appetite for AI, an investment boom with no precedent in history, according to PricewaterhouseCoopers.

At the same time, the tech industry, led by US giants such as Microsoft and Amazon, is trying to blunt a backlash against data centres that threatens to slow the build-out.

At least 75 projects, worth about US$130 billion combined, were blocked or delayed by local opposition during the first three months of 2026, according to research group Data Center Watch.

Protesters cite concerns about environmental impact, resource consumption and, more broadly, how AI could upend employment and society.

In the United States, the data centre backlash is becoming a force in the November midterm elections.

Thailand is experiencing a proliferation of data centres as tech investment soars. It has emerged as a regional destination for AI and cloud infrastructure as global technology companies, including Alphabet’s Google, Amazon and Microsoft, build out data centre capacity.

In May, the government approved TikTok System (Thailand)’s data infrastructure expansion, including data-hosting services, servers and storage facilities.

The government approved 88 projects with a total investment of 886 billion baht (S$34.1 billion) related to AI and data centres in the first six months of the year, according to Board of Investment data.

Tech investment in the first half has already surpassed the 623 billion baht recorded for all of 2025.

Data centres’ drain on power and water is now causing the government to rethink its approach to the industry.

It is weighing higher electricity rates for large data centre operators and stepping up scrutiny of projects in densely populated areas after concerns emerged over facilities being developed in central Bangkok.

The Bangkok authorities temporarily halted approvals for three other projects after complaints over a data centre being built next to a hospital exposed a regulatory gap that allows such facilities to seek permits as warehouses, Governor Chadchart Sittipunt told reporters before the meeting on Sept 4.

There should be some environmental impact reviews of data centres, he said.

Nationwide, 35 data centres are now in operation, while 117 proposed facilities are awaiting investment approvals, according to Danucha. BLOOMBERG