Scrutinizing control over data centers, the government is urgently revising criteria to focus on national benefits. Dr. Rueabin points out their necessity for Thailand's AI infrastructure, but notes hardware is imported and employment remains low, calling for government transparency to build confidence.
Business "Data Center" The data center industry has attracted significant investment into Thailand over recent years, spreading projects across many regions nationwide, especially in Bangkok and the Eastern industrial estates.
Data from CIMB Bank, compiled from the Board of Investment (BOI), BOI shows that from 2024 to May 2026, more than 44 data center projects received BOI investment promotion approval, totaling 1.6 trillion baht in value.
Although the investment figure is high, the data center business faces opposition questioning its economic viability, given the low employment but massive resource consumption—such as electricity and cooling water—operating 24/7, potentially competing with essential public resources.
Additionally, these centers emit heat, noise pollution, and other environmental impacts. Previously, data centers fell outside the Factory Act, meaning construction did not require Environmental Impact Assessments (EIA), creating regulatory loopholes.
Recently, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas revealed that the government recognizes these issues and acknowledges that Thailand previously lacked systematic oversight of this sector, resulting in "loopholes" allowing foreign operators to establish data centers without BOI approval, limiting government's ability to regulate resource use and environmental conditions. The government will expedite revisions to BOI investment incentive criteria related to data centers, shifting focus toward evaluating
the country's return on investment (ROI). This means comparing the benefits Thailand sacrifices versus what it gains. Operators must not only invest money but also establish research centers or collaborate on developing Thai workforce skills, connect with local supply chains, create jobs, transfer technology, and train cloud engineers and data scientists. On 14 Aug 2026, the government announced the Prime Minister's Office Regulation establishing the Data Center Business Policy Committee, or "Data Center Board," tasking BOI, the Ministry of Natural Resources, and the Ministry of Energy to jointly supervise. One condition may require data centers to build their own power plants to avoid impacting the main grid.
Setting Investment Efficiency KPIs Thairath Online special news team discussed this issue with Dr. Thamthee Sukchotirat,
"Dr. Rueabin," a Big Data expert who said that in today's technology and AI advancements, having data center businesses in Thailand is beneficial and necessary. It enables Thailand to store data locally under Thai laws and oversight, ensuring data security and proper usage. However, the main data center costs are hardware, which are still imported. The next largest cost is electricity consumption, which is substantial. Concerns remain about sufficient supply and whether it is clean energy, necessitating promotion of renewable sources.
Moreover, data centers require minimal human labor—only technical experts or staff for installation, monitoring, and maintenance—resulting in very low employment rates. "Currently, no one can say how much return Thailand gets for every baht invested. Other industries with high employment can show how many jobs are created, but this sector is more infrastructure investment," he explained. Therefore, the government should clearly define performance indicators or KPIs for what benefits the data center business returns. He supports the government's recent move to include ROI in investment evaluations, seeing two opportunities: First, data centers setting up in Thailand should be regulated to transfer know-how. Second, examine whether any hardware or equipment used can be produced domestically or create new supply chains, mandating use of locally made equipment to boost employment in related industries.
Infrastructure Protecting Thai Data
Dr. Thamthee views data centers as necessary future infrastructure to safeguard Thai people's
"data" assets. The world is transitioning from the era of Generative AI
(AI functioning as chatbots or command-based systems) to full-fledged Agentic AI (AI that plans and acts autonomously), increasing data center importance.
government agencies, which hold large data sets. Using Agentic AI can speed and improve their efficiency, requiring domestic data storage and processing. "Having data centers in-country may not directly generate profit, but leveraging these functions can greatly enhance government operations and reduce huge operating costs," he said.
Concerns Over Data Center Security and National Resource Trade-Offs Regarding data security concerns, especially with Chinese-owned data centers, Dr. Thamthee noted that investors come from various countries, including China, the U.S., and the UAE. China has long been an important Thai ally. Thus, security depends more on Thai authorities establishing clear regulations and enforcing them strictly. "Whether Chinese or Western investors, they generally behave well. But if Thai authorities fail to enforce laws, creating loopholes, opportunistic actors may exploit the system," he warned. On concerns about whether the massive resource consumption is worth it, Dr. Thamthee said no project is purely positive or negative; assessing ROI is crucial to determine if the trade-off benefits the country. If the government assesses and is confident in the value, it must build public trust through transparent communication and fulfilling its promises.
"Conversely, when government projects raise social questions but receive vague answers—like AI passports measured by registration numbers rather than actual effective use, or promises to store and process data domestically that don't materialize—these erode public trust," he concluded.
