Navigating data centre opportunities across APAC - Thailand

Thailand’s data centre market is relatively small compared to other APAC countries, with an estimated value of US$1.56 billion in 2024. However, it offers promising potential, supported by relatively simple regulatory frameworks and affordable capital requirements.

To explore settings in other jurisdictions visit our APAC Regulatory Guide.

Sources: Worldometer, Statista, Mordor Intelligence, ResearchandMarkets.com

Economic and tax incentives, including special economic zones and economic corridors, support data centre development and foreign investment through corporate tax exemptions, land ownership rights and streamlined approvals.

While Thailand is generally investor-friendly, it faces the same pressures as other APAC countries in managing sustainable growth.  In response to growing global demand, it has introduced initiatives to accelerate the adoption of renewable energy.

The future is renewable

As Thailand advances toward a more sustainable future, the Energy Regulatory Commission (ERC) has implemented key initiatives.

These are aimed at enabling 100% renewable energy use in data centres. Specifically, the ERC has introduced the first stage of the Utility Green Tariff program and a Direct Power Purchase Agreement (DPPA) scheme, offering data centre operators the opportunity to purchase renewable energy:

• at premium rates, and
• directly, from producers.

Incentives, incentives, incentives

Thailand offers a range of incentives to attract data centre investment, which have already drawn major players such as ST Telemedia Global Data Centres and Amazon Web Services. 

These include dedicated SEZs and financial incentives designed to support large-scale digital infrastructure. 

• With over 15 SEZs near ports and transport hubs, these areas offer logistics, connectivity and resources ideal for data centres. In particular, the Eastern Economic Zone is being earmarked as Thailand’s ‘Silicon Valley’.
• General and sector-specific benefits are provided by the Board of Investment (BOI), including corporate income tax and VAT exemptions.

No data centre-specific regulation for water or zoning

Thailand does not impose data centre-specific regulation on water supply or zoning, with developments subject only to standard utility and land use rules.

This regulatory flexibility lowers barriers to entry, making Thailand an attractive destination for data centre investment.

Water supply for data centres in Thailand is not specifically regulated and is managed by the relevant utility providers or local water authorities.

Similarly, data centre developments are subject to standard land and zoning requirements, with no special permits needed.