Thailand Introduces Updated Promotion Regime for Data Center Businesses (Thailand)

Introduction

BOI simultaneously issued three announcements (collectively, the “Announcements”), published in the Royal Gazette on 5 June 2026, which amend the conditions and incentives for data center businesses under Thailand‘s investment promotion framework. The three Announcements are: (i) Announcement No. Sor. 9/2568, which revises the promoted activity categories and technical conditions originally set out in BOI Announcement No. 9/2565 dated 8 December 2022; (ii) Announcement No. Por. 3/2569, which prescribes the criteria for the Thailand Benefit Enhancement Plan; and (iii) Announcement No. Sor. 2/2569, which introduces an additional pre-application requirement for power supply confirmation. Together, the revised criteria aim to support Thailand’s development as a regional digital hub while promoting higher technical standards, enhancing the capabilities of the Thai workforce, and strengthening the local supply chain.

Categories of Promoted Data Center Activities

The Announcements establish two categories of promoted data center businesses:

• High Energy Efficiency Data Center (Category 8.2.1.1) – This category targets operators that meet heightened energy efficiency standards, i.e. having Power Usage Effectiveness (PUE) of not exceeding 1.3. PUE is a standard metric used to measure the energy efficiency of a data center, calculated as the ratio of total facility energy consumption to the energy consumed by IT equipment alone; a PUE closer to 1.0 indicates greater efficiency. Projects in this category are eligible for higher-tier incentives.
• Other Data Center (Category 8.2.1.2) – This category applies to all data center operations that meet all technical and operational requirements but do not achieve the elevated PUE standard required under Category 8.2.1.1.

Tax Incentives

Corporate income tax (CIT) exemption, capped at the amount of qualified investment (excluding land cost and working capital), will be granted based on the category of data center and the location of the project, as follows:

Notably, projects located in the EEC receive a shorter CIT exemption period compared to projects located outside EEC areas. This is because the EEC already benefits from separate area-based incentive measures.

In addition to the CIT exemption, promoted projects are also eligible for standard tax and non-tax incentives, including import duty exemption on machinery, land ownership rights, and work permit and visa facilitation for expatriate employees.

Key Technical Requirements

Both categories of data center businesses must satisfy detailed technical and operational criteria. The key requirements with significant implications for investors are highlighted below:

In addition to the above, the Announcements prescribe further technical requirements relating to telecommunications systems, concurrently maintainable operations, backup generators and UPS systems, independent distribution paths, air conditioning, fire protection, 24-hour security, and water resource management. Please refer to the full text of Announcement No. Sor. 9/2568 for the complete list of technical conditions.

Thailand Benefit Enhancement Plan (Por. 3/2569)

Announcement No. Por. 3/2569 sets out detailed criteria for the Thailand Benefit Enhancement Plan, which must be completed before CIT incentives can be utilized. Applicants are required to undertake both of the following categories of activities:

1. Knowledge Sharing – Activities include personnel training, development of joint academic curricula with educational institutions, research and development initiatives (particularly in AI, Cloud Infrastructure, High Performance Computing, Liquid Cooling systems, and Battery Storage Systems), and enhancement of skills for Thai SMEs and Startups with a focus on areas such as electrical and power systems, construction and M&E (mechanical and electrical), and IT services (networking, cabling, and maintenance).
2. Local Supply Chain Development – Activities must support local supply chain operations in Thailand, including, for example, transferring technical know-how in construction design and related systems (such as cooling, security, and electricity and water systems), installing domestically manufactured machinery and equipment, or engaging local entities with relevant expertise to carry out machinery installation.

The plan must demonstrate that the supply chain development activities meet applicable standards and are implemented in a concrete and verifiable manner.

The BOI Office will verify compliance with the Thailand Benefit Enhancement Plan before allowing CIT incentives to be utilized. Evidence of completion must be submitted, and the proportion of contributions to training activities and curriculum development with educational institutions must be disclosed. The verification process requires evidence including contracts with educational institutions, and detailed reports on supply chain development outcomes.

Key Recommendations for Investors

Investors considering data center projects in Thailand, including existing BOI applicants, should take note of the following:

• Thailand Benefit Enhancement Plan. Investors must prepare and implement a comprehensive Thailand Benefit Enhancement Plan covering both knowledge-sharing and supply chain development activities. The plan must be completed and verified by the BOI Office before CIT incentives can be utilized. Early engagement with Thai educational institutions, SME partners, and technology providers is strongly recommended.
• ISO/IEC 27001 Certification. ISO/IEC 27001 certification for the data center must be obtained before CIT incentives can be utilized. Given the lead time required for certification (typically 6–12 months), investors should initiate the certification process well in advance of project completion.
• PUE Compliance. For projects seeking High Energy Efficiency Data Center status (Category 8.2.1.1), the PUE standard of not exceeding 1.3 must be achieved before CIT incentives can be utilized or the operation start-up period is due. Investors should ensure that energy efficiency measures are designed into the project from the outset.

For more details about these Announcements, or any aspect relating to data center investment in Thailand, please contact Charuwan Charoonchitsathian at charuwan.c@nagashima.com, or Napassorn Lertussavavivat at napassorn.l@nagashima.com.