PM Calls for Clearer Data Center Rules to Balance Investment and Resource Use

Anutin Charnvirakul, Deputy Prime Minister and Minister of Interior, has called for clearer regulations governing data centers in Thailand, acknowledging the sector’s growing investment while raising concerns over its heavy use of electricity, water and other resources.

Anutin said previous governments had focused on attracting foreign investment and capital, but Thailand had not established specific legislation to regulate data center operations.

He noted that data centers can consume substantial amounts of electricity, water and other resources while creating relatively few jobs. However, he cautioned against making direct comparisons between investment value, resource consumption and employment, saying the economic benefits of investment should also be taken into account.

“Today, there is significant investment and capital circulation. Criticizing the situation in such a manner is unfair to investors,” Anutin said.

He recalled that five years ago, Thailand would have welcomed an investor proposing to establish a data center, given the expectation of a substantial inflow of capital.

“It is impossible to achieve a perfect win-win scenario in every aspect,” he said, adding that it would be difficult to simultaneously secure high levels of investment, employment and continued expansion in every sector.

Anutin said that while Thailand sometimes exceeds its foreign investment targets, it would be unfair to investors to abruptly restrict investment or shift government support to other industries after commitments have been made.

Nevertheless, he said the government has established a committee to address the issue by developing regulations, setting strategic direction and drafting specific legislation for the data center sector.

The objective, he said, is to maximize the benefits of data center investment while ensuring that resource use is managed fairly and responsibly. This includes the consumption of fuel and electricity, the use of cooling water and the environmental impacts associated with the large amounts of heat generated by data centers.

The issue has become particularly relevant in Bangkok following the discovery of data center facilities that were also storing fuel, Anutin said.

He referred to Bangkok Governor Chadchart Sittipunt’s discovery of such facilities and said he believed the activities were likely unauthorized, noting that fuel storage would require multiple permits and approvals.

“Simply put, who would dare authorize fuel storage within a building?” Anutin said, suggesting that the arrangement could potentially have been intended to circumvent existing regulations.

He stressed that the matter must be addressed strictly in accordance with the law, while calling for greater coordination among relevant agencies.

These include the Department of Public Works and Town & Country Planning, the Department of Provincial Administration, the Department of Disaster Prevention and Mitigation, electricity authorities, water-related agencies and provincial authorities in areas hosting data centers.

Anutin said these agencies should improve information sharing and establish more systematic coordination to monitor data center development, address resource and environmental concerns, and minimize potential impacts on the public as the sector continues to expand.

The Better News English