Thailand is drafting a Prime Minister's Office regulation to control the rapidly expanding data centre sector, with particular focus on its heavy demand for electricity and water. A Government House source said the proposed rules would create a legally empowered committee to oversee approvals, permissions, monitoring and assessments of data centre projects in Thailand. The plans were reported on Wednesday, August 5, 2026. Central oversight for a growing sector The government review found that existing arrangements make it difficult to plan national resources as more data centre investments are proposed. Data centres require substantial electricity supplies and use water in cooling systems, while operators place a high value on reliable, uninterrupted services. At present, data centres are not classified as a specifically controlled business and do not have one central licensing route. Applications have instead been handled through bodies including the National Broadcasting and Telecommunications Commission, the Board of Investment, or through direct agreements with water authorities for extra supplies. The source said some operators had even bought former entertainment venues in Bangkok's Rama 9 area and converted them into data centres because suitable infrastructure was already in place. Water reservations complicate planning The issue is particularly acute in the Eastern Economic Corridor, where industrial demand must be balanced against water needed by households and agriculture. "Some investors planning data centres in the EEC have signed overlapping water reservation agreements with several agencies, including East Water, Wong Siam Construction and the Provincial Waterworks Authority, at the same time to ensure sufficient water for cooling systems," the source said. This can make projected water demand appear higher than actual needs, complicating government planning for future supplies. Existing data centres would be audited under the new framework, with checks covering water use, temperature management and noise. Projects already approved and under construction would face additional measures aimed at reducing impacts during building work and later operations. Future applicants would face the fullest requirements, including rules governing water consumption and reservations to ensure supplies remain available for other users. Zoning outside the EEC is being considered The government is also considering zoning new facilities in locations with more appropriate infrastructure, rather than further concentrating projects in the EEC. One option under consideration is near the Mae Moh mine in Lampang province, where large reservoirs were originally developed for power generation. The source said this could reduce competition with household water use. If Mae Moh becomes a data centre hub, the government would invest in digital infrastructure including high-speed fibre-optic networks. Better location planning, the source said, could reduce longer-term disputes over resources shared by households, industry and data centre operators. Picture courtesy of The Nation Join the discussion? 6 August 2026
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