Bangkok:The Thai Cabinet has officially approved new standards and controls for data center businesses, focusing on environmental and community standards. The Ministry of Digital Economy and Society (DE) has been tasked with creating a One-Stop Service to clarify and streamline processes for investors, with an emphasis on ensuring that investments add value to Thailand.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas announced that the Cabinet has approved guidelines for regulating data center operations. Prior to this, there was a lack of clear regulatory frameworks, leading some operators to proceed without proper guidance. The new measures aim to build investor confidence and public trust by establishing clear rules.
The initiative has three primary objectives providing regulatory certainty for investors, ensuring benefits for Thai people and businesses, and creating a national data center database. This database will track data center locations and establish criteria based on international standards, categorizing them by electricity usage.
The new regulations will set minimum standards to protect citizens and communities, covering environmental, social, water, electricity, land use, and urban planning aspects. This ensures businesses operate without harming the public or environment and promotes sustainable natural resource use without infringing on public rights and interests.
The Ministry of Digital Economy and Society will establish a one-stop service center to facilitate the approval and licensing process, ensuring consistent operation across related agencies. Data center investments must demonstrate added value for Thailand, considering factors like employment, skills development, income generation, and the promotion of Thai entrepreneurs within the supply chain.
Mr. Ekniti highlighted that businesses must comply with the new regulations to proceed. The power generation capacity will range from 0.5 to over 200 megawatts, with stricter regulations starting at 20 megawatts concerning environmental and resource usage. Projects under 20 megawatts can be located in commercial areas, while larger projects must be in industrial zones.
Operators who began before the transition period, receiving licenses before August 14th, can continue but must comply with environmental standards within a year. Those licensed after August 14th will undergo review by a screening committee, which also applies to new applicants.