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Thailand tightens investment standards for AI data centres

BOI Secretary-General Nrit Therdsteerasukdi said Thailand's investment policy will shift from prioritising the quantity of data centre projects to emphasising quality, supporting the country's ambition to become a competitive and sustainable digital economy hub in the region.

Bangkok (VNA) – Thailand is introducing stricter investment criteria for data centres as booming artificial intelligence (AI) demand fuels a surge in digital infrastructure investment while increasing pressure on electricity, water resources and the environment.

Thailand's The Nation newspaper quoted Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas as saying that 16 data centre projects have so far secured confirmation that electricity could be supplied. The government is drafting a new strategy to promote investment in the sector while ensuring broader national benefits, shifting the focus from the number and value of projects to their overall quality and long-term contribution.

Ekniti has instructed the Board of Investment (BOI) to formulate a national data centre development strategy and establish a subcommittee to oversee energy management and assess data centre investments. The panel will include representatives from the Ministry of Energy, the BOI, the Energy Policy and Planning Office, and other relevant agencies.

Under the new framework, projects will be evaluated against four key criteria: reliable electricity supply and a roadmap for adopting clean energy; sustainable water management that does not compromise local communities' access to water; environmental protection measures, including pollution and noise control; and projects' contribution to Thailand's economy, particularly the development of digital and high-tech industries.

BOI Secretary-General Nrit Therdsteerasukdi said Thailand's investment policy will shift from prioritising the quantity of data centre projects to emphasising quality, supporting the country's ambition to become a competitive and sustainable digital economy hub in the region.

To qualify for BOI investment incentives, future projects must meet requirements on energy efficiency, water resource management, environmental protection and socio-economic benefits. Investors will also be expected to deliver tangible value by developing AI and digital talent, helping small and medium-sized enterprises (SMEs) integrate into technology supply chains, establishing centres of excellence for research and development, and sharing computing capacity to strengthen Thailand's national AI capabilities.

Thailand has aggressively promoted data centre investment to capitalise on the global AI boom. In 2025, the country approved 26 projects worth 498.716 billion THB (about 15 billion USD). So far in 2026, it has approved another eight projects with a combined investment of 162.044 billion THB (about 4.9 billion USD).

The rapid expansion of data centres, however, has also heightened concerns over rising energy and water consumption. The Thai government said the new investment standards are intended to ensure future projects support the country's digital economy goals while making efficient and sustainable use of national resources./.

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