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The Green Hurdle: How Thailand’s Temporary Freeze and Stricter Sustainability Policies Will Impact Data Centers (Thailand)

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September 2026

The Green Hurdle: How Thailand’s Temporary Freeze and Stricter Sustainability Policies Will Impact Data Centers (Thailand)

Author: Supasit Boonsanong, Kobchai Nitungkorn (Co-author)

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Thailand Legal Update No.53 (September, 2026)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Introduction

As Thailand’s data center sector expands, the associated regulatory framework continues to evolve to manage the sector’s resource-intensive demands. Three recent developments are of note:

The Board of Investment (“BOI”), following its July 8, 2026 meeting, introduced a centralized pre-approval mechanism for data center project developers.
The Cabinet approved and brought into force a new regulation of the Prime Minister’s Office establishing a national-level Data Center Business Policy Committee with overarching authority over the sector’s investment, energy, and resource policies.
On September 4, 2026, the newly formed Policy Committee resolved to temporarily suspend all ongoing construction and pending approvals for data center projects, to finalize comprehensive minimum sustainability and economic standards.

In this newsletter, we outline these three developments and their immediate implications for pending and upcoming investment promotion applications.

1. Transition to an Integrated Preliminary Assessment

Formerly, under the system that had been introduced on March 30, 2026, developers applying for BOI investment promotion were required to independently secure confirmation of electricity availability from the Office of the Energy Regulatory Commission (“ERC”) before submitting their application. Effective July 15, 2026, however, the BOI replaced this single-agency check with a holistic review conducted by a newly established subcommittee, in order to address infrastructural impacts extending beyond grid capacity alone.

2. The New Preliminary Screening Mechanism

On July 15, 2026, the BOI approved the expansion and restructuring of its existing energy panel into the Subcommittee on Energy Management for Investment Facilitation and Data Center Project Screening (the “Subcommittee”).

Chaired by the Minister of Energy, with the BOI and the Energy Policy and Planning Office (“EPPO”) serving as joint secretariat, the Subcommittee now acts as the gateway for the mandatory preliminary assessment of all data center projects. The Subcommittee must approve a project before investors can formally submit an investment promotion application to the BOI. This requirement applies both to new applications for data center projects seeking BOI promotion and projects whose BOI promotion applications are currently under consideration.

The Subcommittee draws its members from a wide range of government offices and state utilities, including the ERC; the Department of Climate Change and Environment; the Department of Water Resources; the Electricity Generating Authority of Thailand; the Provincial Electricity Authority; the Provincial Waterworks Authority; and the Office of the National Higher Education, Science, Research and Innovation Policy Council.

As of this newsletter, there has been no publication, for the Subcommittee’s review, of detailed application procedures, required documentation, assessment criteria, and indicative timelines. Investors should therefore factor the resulting uncertainty into their project planning and timelines.

3. The National Data Center Business Policy Committee

On August 5, 2026, the Cabinet approved a draft Prime Minister’s Office Regulation on the Data Center Business Policy Committee (the “Policy Committee”), which was published in the Royal Gazette on August 13, 2026, and took effect the following day.

The regulation establishes a national-level policy body dedicated to the data center sector. This move addresses the exceptional power and water demands of data centers, whose rapid growth already strains grid stability, national energy security, and electricity pricing, while they compete for limited water resources with households as well as the agricultural and industrial sectors. To manage these challenges, the newly formed Policy Committee is chaired by a Deputy Prime Minister, with the Ministers of Digital Economy and Society, Interior, and Energy serving as Vice Chairs. The Policy Committee is further supported by 13 ex-officio members—comprising the permanent secretaries of eight ministries; the Secretaries-General of the BOI, the ERC, the National Broadcasting and Telecommunications Commission (NBTC); the Office of National Water Resources; and the Director of EPPO—along with up to three additional members appointed by the Prime Minister.

The Policy Committee is empowered to propose comprehensive policies, standards, and operational frameworks to the Cabinet, which will guide state agencies in approving, licensing, or servicing data center operators. Furthermore, the Policy Committee is tasked with studying and monitoring the sector’s broader socio-economic and environmental impacts, reporting its findings directly to the Cabinet and performing any other regulatory duties assigned by the Cabinet or the Prime Minister. To efficiently manage its workload, the Policy Committee may appoint specialized subcommittees to handle specific issues or delegated tasks.

Proposals by the Policy Committee must weigh not just economic benefit, but also clean energy use, energy security and pricing, equitable water allocation, urban planning, fire safety, data sovereignty, environmental protection, and Thailand’s carbon-neutrality target. Once a proposal is adopted by the Cabinet, implementing agencies must report progress to the Policy Committee quarterly.

4. Temporary Suspension of Approvals and Formation of Subcommittees

The Policy Committee, during the meeting on September 4, 2026, reviewed data from 16 agencies regarding data center project approvals and investments. The data revealed that 35 projects are already operational (including 11 under BOI supervision). Additionally, there are 166 projects currently in the pipeline: approximately 49 under construction and over 117 pending approval or consideration by various agencies.

The Policy Committee resolved to temporarily suspend all ongoing construction and pending approvals for data center projects due to a lack of sufficient detail to properly monitor and regulate these developments. This pause will remain in effect until clear minimum standards for environmental and social care are established, alongside economic criteria designed to ensure the country receives maximum benefits. The agencies assigned to draft these criteria have been given a strict one-month deadline to complete them.

Furthermore, four specialized subcommittees were formed to define minimum requirements for new builds and to oversee post-auditing processes:

Economic: Co-chaired by the Secretaries-General of the Office of the National Economic and Social Development Council (NESDC) and the BOI, this subcommittee will assess economic viability and national benefits.
Infrastructure: Co-chaired by the Secretary-General of the Office of the National Water Resources (ONWR) and the Permanent Secretary of Energy, and tasked with overseeing water systems, electricity, digital networks, and green energy utilization.
Area and Building: Co-chaired by the Permanent Secretaries of Interior and Energy, and regulating location controls, building safety, and power substations.
Environment: Chaired by the Permanent Secretary of Natural Resources and Environment, and focusing on the establishment of Best Practices for sustainable operations rather than relying solely on punitive measures.

5. Implications for Project Developers, Investors and Operators

The recent regulatory shift transitions the sector from a centralized, single-agency review to a more rigorous and multi-tiered framework. Moving forward, the overarching National Policy Committee will establish macro-level mandates for the sector, while a dedicated BOI Subcommittee will scrutinize individual project applications.

Although in the near term this transition introduces a more intensive pre-approval phase, it promises greater regulatory certainty and transparency once the new baseline criteria are standardized.

To successfully navigate this evolving landscape, developers, investors, and operators should consider the following:

Factoring in the Temporary Suspension and Extended Timelines: With the September 4 mandate pausing all approvals and construction for at least one month while new standards are drafted, developers face an immediate halt and extended regulatory ambiguity. Investors must build longer buffer periods into their project schedules, as both greenfield projects and capacity expansions (particularly those exceeding 30% IT Load) will now require multi-agency clearance prior to formal BOI submission—an added layer of scrutiny that could delay final investment decisions and project launch dates.
Holistic Project Structuring and Early Integration: The BOI application process now demands a multi-dimensional assessment that extends far beyond standard technical and financial viability. In order to facilitate the pre-approval process, project sponsors should align their engineering, environmental, and legal feasibility studies with the Policy Committee’s integrated review standards much earlier in the development timeline.
Alignment with Anticipated Policy Priorities: Expect future BOI criteria to place significant weight on resource sustainability and infrastructure strain. Projects incorporating verifiable renewable energy supply chains and highly efficient, sustainable water management plans will possess a distinct advantage.

We will continue to monitor both the Subcommittee’s screening process and the Policy Committee’s rollout, along with any supplementary guidance from the BOI, the Ministry of Energy, or the Cabinet.

Should you have any questions regarding how these regulatory changes may impact your current project development plans or cross-border investment strategies in Thailand, please contact Supasit Boonsanong at supasit.b@nagashima.com and Kobchai Nitungkorn at kobchai.n@nagashima.com.

September 11, 2026

This newsletter is given as general information for reference purposes only and therefore does not constitute our firm’s legal advice. Any opinion stated in this newsletter is a personal view of the author(s) and not our firm’s official view. Given the nature of this newsletter as general information, statutory provisions and source citations may have been intentionally omitted. For any specific matter or legal issue, please do not rely on this newsletter but make sure to consult a legal adviser. We would be delighted to answer your questions, if any.

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Lawyers

Supasit Boonsanong

Partner

Bangkok

Kobchai Nitungkorn

Associate

Bangkok

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