Thailand urged to create central authority for data centre boom

Thailand's state planning agency, the National Economic and Social Development Council (NESDC), has recommended the creation of a central authority to regulate the country's rapidly expanding data centre industry. The proposal aims to ensure that the wave of incoming investment translates into domestic jobs and sustainable economic growth.

The NESDC argues that a dedicated body is needed to manage the sector's development and its environmental footprint. It also calls for updating existing laws and regulations to better fit the unique operational needs of data centres.

A key focus of the recommendation is increasing the involvement of Thai businesses in these projects. The council suggests that investments should mandate the use of local content, services, and labour. It also proposes opening project planning to public consultation, with formal mechanisms to monitor impacts and provide remedies for affected communities.

Secretary-General Danucha Pichayanan highlighted the importance of resource efficiency. He urged operators to adopt renewable energy and technologies that reduce electricity and water consumption, setting clear targets for usage.

The push comes amid a significant surge in data centre investments. In 2025 alone, Thailand's investment board approved projects worth over $3 billion, including ventures by Dubai's DAMAC Digital and China's ZDATA affiliate, Stratus Technology. Earlier, Google announced a $1 billion commitment to build a data centre and cloud region in the country, reflecting the growing demand for cloud services and artificial intelligence in Southeast Asia.