A year of… major investment, stronger renewable pathways and sustained policy support
Thailand’s data centre market has experienced remarkable growth, transforming the country into an increasingly attractive destination for digital infrastructure investment.
In 2025, 40 data centre projects were submitted and approved for promotion by Thailand’s Board of Investment (BOI) with a combined investment value of US$22.7 billion, compared to US$2.8 billion in 2024, involving Thai and foreign investors. In 2026, the BOI has already approved 9 projects valued at ~US$2.7 billion.
While Thailand is generally investor-friendly, it faces the same pressures as other APAC countries in managing sustainable growth. The government has just set up a data centre board and announced plans to introduce new regulations for data centres, with authorities to temporarily suspend approvals until the new regulations are in place. The government is accelerating renewable energy adoption in response to resource constraints and public opposition, reflecting global trends. This points to more selective project screening rather than any broader slowdown in data centre investment.
Data centre statistics provided by DC Byte.
Spotlight on key drivers
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.
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 Special Economic Zones (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 BOI, including corporate income tax and VAT exemptions.
Thailand does not impose data centre-specific regulations on water supply or zoning, with developments subject only to standard utility and land use rules. However, this is under review.
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.
This is expected to change after recent announcements relating to proposed data centre reforms.
The government plans to introduce a more tailored regulatory framework for large-scale developments, including additional scrutiny of resource usage and community impacts in response to concerns.
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