# Thailand froze 166 data centre projects. Its 80% water reuse rule goes to the board on 27 November

> Thailand has paused 49 data centre builds and frozen 117 approvals while it writes new rules. A draft 80% water reuse rule goes to its data centre board on 27 November.

Publisher: DC Market Insights  
Published: 2026-10-26  
Last updated: 2026-10-26  
Page: https://www.dcmarketinsights.com/news/thailand-froze-166-data-centre-projects-its-80-water-reuse-rule-goes-to-the-board-on-27-november

## Key takeaways

- At its first meeting on 4 September, Thailand's new data centre policy board asked 49 data centres under construction to pause and froze decisions on 117 more, 166 projects in all, The Nation and W.Media reported.
- A draft ministerial regulation would require data centres to reuse at least 80% of their monthly cooling-tower blowdown water. The board is due to consider it on 27 November, and it would take effect 180 days after publication in the Royal Gazette, The Nation reported on 25 October.
- If every approved project ran at full capacity, data centre demand could approach 30,000 MW, against about 55,000 MW of generating capacity, the Energy Regulatory Commission's secretary-general said, as reported by The Nation.
- A proposed separate data centre tariff of about 5-6 baht per kWh is 27-52% above the ERC's 3.95 baht average for May-August 2026. For a 100 MW campus that is 736 million to 1,437 million baht more a year (our calculation).
- The Board of Investment approved 88 AI and data centre projects worth 886 billion baht (US$27 billion) in the first half of 2026, more than the 623 billion baht for all of 2025, W.Media reported citing BOI data.

Thailand spent two years selling itself as Southeast Asia's next data centre hub, and investors believed it. Now the country is asking many of those projects to stand still. Since 4 September, 49 data centres under construction have been asked to pause, and 117 more are waiting on decisions that the government has put on hold until it writes a national rulebook for the industry.

The rulebook is now taking shape, and it is stricter than many developers planned for. On 25 October, details emerged of a draft regulation that defines a data centre as any building using at least 0.5 MW, sets fire, fuel and emergency power standards, and makes operators reuse 80% of their cooling-tower discharge water. The board meets on 27 November to decide. This is the pain point of the quarter for Southeast Asia's build-out outside Malaysia: not a shortage of chips or land, but a shortage of rules that a lender can underwrite.

**166** Data centre projects paused or frozen since 4 September: 49 under construction, 117 awaiting approval (The Nation)

**30,000 MW** Data centre demand if all approved projects ran at full capacity, against about 55,000 MW of generating capacity (ERC, via The Nation)

**27 Nov** Data centre board due to consider the draft regulation with the 80% water reuse rule (The Nation)

## How Thailand got here: from an investment race to a construction pause

The approvals came fast. The Board of Investment (BOI) approved 88 AI and data centre projects worth a combined 886 billion baht (US$27 billion) in the first six months of 2026, more than the 623 billion baht recorded for all of 2025, [W.Media reported](https://w.media/thailand-freezes-construction-of-49-data-centers-new-rules-to-be-unveiled-in-a-month/), citing BOI data. In the first quarter alone, digital sector applications reached 873.7 billion baht across 48 projects, [Eco-Business reported](https://www.eco-business.com/news/thailand-tightens-data-centre-rules-as-ai-boom-strains-power-grid/). The single largest was an 842 billion baht (about US$25 billion) expansion by a Thai TikTok unit approved in May, spanning Bangkok, Samut Prakan and Chachoengsao, according to [Thai Examiner](https://www.thaiexaminer.com/thai-news-foreigners/2026/09/13/prime-minister-scrambles-to-get-data-centre-sector-back-on-track-after-energy-and-regulatory-hiatus/).

The scale of that paper pipeline is hard to overstate. Our calculation: the BOI's first-half approvals of about US$27 billion equal nearly 14 times the US$1.95 billion that DC Market Insights estimates was spent on Thailand's whole data centre market in 2025. Most of those approvals will take years to turn into buildings, and some never will.

The trigger for the pause was not a grid failure. It was a fuel tank. After a complaint, Energy Ministry inspectors found fuel stored without the required licence at a data centre building on Rama IX Road in Bangkok and removed about 200,000 litres, [The Nation reported](https://www.nationthailand.com/news/policy/40070587) on 3 September. Thai law requires a licence above 15,000 litres, so the stockpile was about 13 times the licensing threshold (our calculation). The same report described a wider loophole: operators could obtain construction permits by classifying buildings as warehouses, then install equipment and run them as data centres, bypassing safety and environmental checks.

> investment must comply with clear laws and safety standards.

***Rachada Dhanadirek** , Government spokesperson, Thailand — [The Nation, 3 Sep 2026](https://www.nationthailand.com/news/policy/40070587)*

The new Data Centre Business Policy Committee, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, met for the first time the next day. It asked the operators of 49 data centres under construction to pause and held decisions on 117 more, [The Nation reported](https://www.nationthailand.com/business/tech/40070670). Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, announced the suspension. Because the government had no clear legal power to force a halt, the pause on projects already being built rests on cooperation, Thai Examiner reported. The government was careful to say the door was still open.

> Today's decision doesn't mean Thailand is closing the door to data-center investment

***Ekniti Nitithanprapas** , Deputy Prime Minister and Finance Minister, Thailand — [W.Media, citing Bloomberg, 4 Sep 2026](https://w.media/thailand-freezes-construction-of-49-data-centers-new-rules-to-be-unveiled-in-a-month/)*

## What changed this month: the rulebook takes shape

The government first promised rules within a month. The National Economic and Social Development Council targeted mid-October and floated 100 MW as the line for a hyperscale facility, [The Nation reported](https://www.nationthailand.com/business/economy/40071260) on 20 September. That deadline slipped. On 1 October the board approved a separate legal definition for data centre buildings, replacing the existing "large buildings" grouping, and agreed to classify facilities by electricity use, [The Nation reported](https://www.nationthailand.com/news/policy/40071762).

The detail arrived on 25 October. The draft ministerial regulation, prepared by Deputy Interior Minister Polapee Suwunchwee's subcommittee under the Building Control Act of 1979, is due before the board on 27 November, according to [The Nation](https://www.nationthailand.com/news/policy/40072717). Its main points:

- **Definition and size classes.**  A data centre is any building or structure using at least 0.5 MW of electricity to collect, store, process or transmit data. Categories run from Category 1 (0.5 MW to below 1 MW) to Category 5 (200 MW or more), based on electricity use or reserve fuel capacity.
- **Water.**  Operators must reuse at least 80% of monthly cooling-tower blowdown as makeup water. Recirculated water does not count. Water that is not reused must meet 2024 discharge standards or go to a licensed treatment provider, and diluting it with clean water is banned. Monthly metering and reports are required.
- **Fire, fuel and emergency power.**  Automatic fire suppression, two-hour fire-rated separation walls, emergency power that starts automatically and runs for at least two hours, and generator and fuel rooms with leak containment and emergency shut-off.
- **Insurance and inspection.**  Third-party liability insurance during construction and operation, and a building inspector under Section 32 bis of the Building Control Act.
- **Existing sites.**  Facilities licensed or operating before the rule takes effect get one year to upgrade fire protection, emergency power and environmental measures.
- **BOI incentives.**  Thai nationals must make up at least 50% of specialist and management staff for a project to qualify for tax incentives, BOI Secretary-General Narit Therdsteerasukdi indicated.

| Date (2026) | Step | Source |
| --- | --- | --- |
| 15 Jul | Government plans a separate, higher electricity tariff category for data centres | Bloomberg, via Energy Connects |
| 5 Aug | Cabinet approves the regulation creating the Data Centre Business Policy Committee | Eco-Business |
| 14 Aug | Proposed grid guarantee of 4.5 million baht per MW reported; commercial operation within 5-7 years or lose capacity | Eco-Business |
| 3 Sep | About 200,000 litres of unlicensed fuel removed from a data centre on Rama IX Road, Bangkok | The Nation |
| 4 Sep | Board's first meeting: 49 projects under construction asked to pause, 117 decisions frozen | The Nation, W.Media |
| 20 Sep | Mid-October target for rules; 100 MW hyperscale threshold proposed | The Nation |
| 1 Oct | Separate legal definition for data centre buildings; classification by power use agreed | The Nation |
| 25 Oct | Draft regulation reported: 0.5 MW definition, Categories 1-5 up to 200 MW+, 80% water reuse, fire and fuel rules | The Nation |
| 27 Nov | Board scheduled to consider the draft regulation | The Nation |

Sources: [The Nation, 25 Oct 2026](https://www.nationthailand.com/news/policy/40072717); [The Nation, 1 Oct 2026](https://www.nationthailand.com/news/policy/40071762); [The Nation, 20 Sep 2026](https://www.nationthailand.com/business/economy/40071260); [W.Media, 4 Sep 2026](https://w.media/thailand-freezes-construction-of-49-data-centers-new-rules-to-be-unveiled-in-a-month/); [Eco-Business, 14 Aug 2026](https://www.eco-business.com/news/thailand-tightens-data-centre-rules-as-ai-boom-strains-power-grid/); [Energy Connects, 15 Jul 2026](https://www.energyconnects.com/news/utilities/2026/july/thailand-plans-higher-power-tariffs-for-data-center-owners/). The 1 October report described five size categories; the 25 October draft lists categories up to Category 5, with sub-categories such as 3.2 and 3.3 used for setback rules.

The timeline matters more than any single clause. If the board approves the draft on 27 November and it is published in the Royal Gazette the same week, it would take effect around late May 2027 (our calculation: 27 November plus 180 days is 26 May 2027). Existing operators would then have a further year to upgrade. For a project that paused on 4 September, that is 84 days of waiting just to reach the board meeting, before any Gazette date.

## The power problem underneath

The safety rules are the visible part. The harder constraint is power. Poonpat Leesombatpiboon, secretary-general of the Energy Regulatory Commission (ERC), said that if all approved projects ran at full capacity, data centre demand could approach 30,000 MW, nearly half of Thailand's roughly 55,000 MW of generating capacity, [The Nation reported](https://www.nationthailand.com/business/tech/40070053) in August. Energy Minister Akanat Promphan has also said data centre and AI demand could reach 30,000 MW, Eco-Business reported.

Thailand does not lack generation on paper; its reserve margin is above 25%. The problem is transmission. About 70% of approved projects are clustered in the Eastern Economic Corridor (EEC), and the planned data centre pipeline of about 2.87 GW sits mostly in Chonburi, Rayong and Chachoengsao, The Nation reported. The Energy Ministry plans more than 1,150 MW of new supply points and transformers in the EEC, and the Electricity Generating Authority of Thailand (EGAT) has a 31 billion baht plan to upgrade EEC transmission.

*Figure 1. Potential data centre demand against Thailand's generating capacity and planned grid additions. Source: [ERC and Energy Ministry, via The Nation, 22 Aug 2026](https://www.nationthailand.com/business/tech/40070053); [Eco-Business, 14 Aug 2026](https://www.eco-business.com/news/thailand-tightens-data-centre-rules-as-ai-boom-strains-power-grid/).*

In our view, 30,000 MW is a ceiling, not a forecast. It assumes every approved project is built and runs flat out. But it explains the policy response: when the paper pipeline is more than ten times the physical pipeline, a grid operator cannot plan transmission around it. Thailand's answer is the same one Texas and Malaysia reached this year. Make queue positions cost money, and make data centres pay for what they use.

Two price tools are on the table. First, the National Energy Policy Council approved a separate electricity tariff for data centres in July, intended to reflect the actual cost of supply, including imported liquefied natural gas and grid investment. It is expected at about 5-6 baht per kWh, Eco-Business reported. Second, the ERC has proposed that developers post a guarantee of 4.5 million baht (US$135,771) per MW, refunded in stages as projects reach real use, and show commercial operation within five to seven years or risk losing their allocated capacity. Both were still proposals in the reports we reviewed.

*Figure 2. Proposed data centre tariff against the ERC average tariff, and the extra annual cost for a 100 MW campus (our calculation). Source: [ERC, via The Nation, 1 Apr 2026](https://www.nationthailand.com/business/economy/40064550); [Eco-Business, 14 Aug 2026](https://www.eco-business.com/news/thailand-tightens-data-centre-rules-as-ai-boom-strains-power-grid/).*

## Who is hurting, and how much

**Developers with buildings half built.**  The 49 projects under construction carry capital that earns nothing while they wait, and they now face a rulebook written after they designed their sites. Fire separation, fuel room containment and emergency power rules can require design changes. Their one comfort is the transition clause: sites already licensed or operating get a year to comply.

**Projects in the approval queue.**  The 117 frozen projects cannot finance, order long-lead equipment or sign customers with a firm date. Rules that take effect around late May 2027 at the earliest push their first energisation dates further out. Some will not survive a guarantee of 4.5 million baht per MW, which is the point of it.

**Operators' power bills.**  The tariff change is the largest recurring cost. Our calculation for a 100 MW campus at 80% average utilisation, about 700.8 GWh a year: at 5 baht per kWh it pays 736 million baht (about US$22 million) more a year than at the ERC average of 3.95 baht; at 6 baht it pays 1,437 million baht (about US$43 million) more. Those are before VAT and assume the tariff applies to all consumption.

| Cost line for a 100 MW campus | Amount | Basis |
| --- | --- | --- |
| Grid guarantee (proposed) | 450 million baht (~US$13.6 million) | 4.5 million baht per MW, refunded in stages |
| Extra power cost, tariff at 5 baht/kWh | +736 million baht a year (+27%) | 700.8 GWh a year vs 3.95 baht/kWh |
| Extra power cost, tariff at 6 baht/kWh | +1,437 million baht a year (+52%) | 700.8 GWh a year vs 3.95 baht/kWh |
| Water | Reuse at least 80% of monthly cooling-tower blowdown | Draft regulation; metering and monthly reports |
| Emergency power | Automatic start, at least 2 hours for life-safety loads | Draft regulation |
| Existing sites | 1 year to upgrade after the rule takes effect | Draft regulation |

Our calculation from the proposed guarantee and tariff (Eco-Business, 14 Aug 2026), the ERC average tariff for May-August 2026 (The Nation, 1 Apr 2026) and the draft regulation (The Nation, 25 Oct 2026). Assumes 100 MW of load at 80% average utilisation over 8,760 hours and about 33 baht per US dollar, the rate implied by the reported US$ figure for the guarantee. The tariff and guarantee were proposals at the time of the reports; final rates may differ.

**The whole pipeline's capital at risk.**  Applied to the 2.87 GW planned pipeline, the proposed guarantee would tie up about 12.9 billion baht (about US$390 million). Applied to the full 30,000 MW the ERC described, it would be about 135 billion baht (about US$4.1 billion) (our calculations). That gap is the filter the government wants: credible projects can post the money, speculative ones cannot.

**Water users around the EEC.**  Industry itself is worried. In a Federation of Thai Industries survey of 160 executives, 68.8% cited water supply as their top concern and 61.3% doubted regulation could keep pace with rising electricity demand, The Nation reported.

> We fear rising water demand could spark competition between industries and communities

***Montri Mahaplerkpong** , Vice Chairman, Federation of Thai Industries — [The Nation, 22 Aug 2026](https://www.nationthailand.com/business/tech/40070053)*

The 80% reuse rule answers that worry directly, and it pushes designs one way. In our view, operators that planned open evaporative cooling towers will need blowdown treatment plants, while dry coolers and liquid cooling, which produce little or no blowdown, become easier to permit. DC Market Insights estimates Thailand's data centre thermal management market at US$479.04 million in 2026; a rule like this shifts more of that spend into water treatment and low-water cooling.

## Thailand by the numbers

| Measure | Figure | Source |
| --- | --- | --- |
| BOI-approved AI and data centre projects, H1 2026 | 88 projects, 886 billion baht (US$27 billion) | BOI data, via W.Media |
| BOI data centre approvals, all of 2025 | 623 billion baht | BOI data, via W.Media |
| Digital sector investment applications, Q1 2026 | 873.7 billion baht, 48 projects | BOI, via Eco-Business |
| Planned data centre pipeline | About 2.87 GW | The Nation |
| Projects paused or frozen since 4 September | 166 (49 under construction, 117 pending) | The Nation |
| Thailand data centre market, 2025 | US$1.95 billion, to US$18.20 billion by 2035 | DC Market Insights estimate |

Sources: [W.Media, 4 Sep 2026](https://w.media/thailand-freezes-construction-of-49-data-centers-new-rules-to-be-unveiled-in-a-month/); [Eco-Business, 14 Aug 2026](https://www.eco-business.com/news/thailand-tightens-data-centre-rules-as-ai-boom-strains-power-grid/); [The Nation, 22 Aug 2026](https://www.nationthailand.com/business/tech/40070053); [DC Market Insights](https://www.dcmarketinsights.com/report/thailand-data-center-market). BOI approvals and applications are different measures, and Thai Examiner reported a different 2025 figure (more than 728 billion baht across 36 applications); do not add or compare them directly. Market size counts facility spending only.

## The wider pattern in Asia-Pacific

Thailand is the third market in the region in a month to put a price on power and grid access for data centres. Malaysia moved to make data centres pay for the full power they reserve and for their own transmission upgrades, as we [reported on 19 October](https://www.dcmarketinsights.com/news/malaysia-will-charge-data-centres-for-power-they-reserve-they-draw-22-of-5-65-gw-2027-tariffs-are-next). BMI said on 23 October that Johor faces the most severe electricity supply constraints among major Asia-Pacific data centre hubs, and that data centres could take more than 90% of Peninsular Malaysia's additional generation over five years, [Free Malaysia Today reported](https://www.freemalaysiatoday.com/category/highlight/2026/10/23/johor-s-data-centre-boom-faces-power-supply-crunch). In Australia, a stalled 66 kV line cost NEXTDC about A$140 million of FY27 EBITDA guidance, as we [covered on 21 October](https://www.dcmarketinsights.com/news/airtrunks-us2bn-johor-sale-and-nextdcs-44-fall-reprice-asia-data-centres-20-november-is-next).

The difference in Thailand is sequencing. Malaysia and Texas tightened the rules while projects kept moving. Thailand stopped projects first and is writing the rules second. That is harder on developers in the short run, but it may give lenders something they lack elsewhere in the region: one national definition, one set of size classes and one water standard.

### What it means for operators, investors and vendors

Our view, based on the rules and figures above:

- **Plan for a mid-2027 rule date, not a 2026 one.**  Approval on 27 November plus 180 days points to about 26 May 2027 at the earliest. Lease start dates and GPU deliveries tied to Thai capacity in early 2027 need buffers or exit clauses.
- **Re-price power at 5-6 baht per kWh.**  For a 100 MW campus at 80% utilisation that adds 736 million to 1,437 million baht a year. Pass-through clauses in colocation contracts should name the data centre tariff.
- **Budget the guarantee as capital at risk.**  At 4.5 million baht per MW, a 300 MW request means 1.35 billion baht (about US$41 million) posted before energisation (our calculation).
- **Design for 80% blowdown reuse now.**  Sites still on the drawing board should price treatment plants or switch to dry or liquid cooling before the rule is final, rather than retrofit within the one-year window.
- **Vendors: expect Thai orders to bunch up after the Gazette.**  Generators, fuel systems, fire suppression and water treatment orders for the 166 paused projects are likely to land together once rules are published.
- **Investors: discount the BOI headline.**  886 billion baht of first-half approvals is about 14 times the 2025 market (our calculation). Value projects by power secured, not by approval value.

For market sizing on the build-out these rules affect, see our [Thailand Data Center Market](https://www.dcmarketinsights.com/report/thailand-data-center-market) report. For the wholesale and retail capacity at stake, see the [Thailand Data Center Colocation Market](https://www.dcmarketinsights.com/report/thailand-data-center-colocation-market) report, and for the cooling and water side of the new rules, the [Thailand Data Center Thermal Management Market](https://www.dcmarketinsights.com/report/thailand-data-center-thermal-management-market) report. For how neighbours regulate power, see our [Malaysia power and policy page](https://www.dcmarketinsights.com/data/power-policy/malaysia) and [Japan power and policy page](https://www.dcmarketinsights.com/data/power-policy/japan), and for transactions, the [Deal Tracker](https://www.dcmarketinsights.com/data/deal-tracker).

## What to watch next

- **Fourth quarter 2026:**  the ERC's screening framework for new data centre grid connections, and final rates for the data centre tariff and the 4.5 million baht per MW guarantee, Eco-Business reported.
- **27 November 2026:**  the Data Centre Business Policy Committee considers the draft ministerial regulation, including the 80% water reuse rule.
- **After board approval:**  the regulation goes to publication in the Royal Gazette; it takes effect 180 days later (about 26 May 2027 if published on 27 November, our calculation).
- **Any date:**  a decision on whether the 49 paused projects may resume and how the 117 pending applications will be screened. No date had been reported by 25 October.
- **About mid-2028:**  the end of the one-year upgrade window for existing facilities, if the rule takes effect in mid-2027.

## Frequently asked questions

### Why did Thailand pause data centre construction?

On 4 September 2026 Thailand's new data centre board asked 49 projects under construction to pause and froze 117 approvals, 166 in all, while it writes national rules. A day earlier, inspectors had removed about 200,000 litres of unlicensed fuel from a Bangkok data centre.

### What is Thailand's new data centre water rule?

A draft regulation would make data centres reuse at least 80% of their monthly cooling-tower blowdown water, with metering and monthly reports. The board is due to consider it on 27 November 2026, and it would take effect 180 days after publication in the Royal Gazette.

### How much will data centres pay for electricity in Thailand?

A separate data centre tariff of about 5-6 baht per kWh has been proposed, 27-52% above the ERC's 3.95 baht average for May-August 2026. For a 100 MW campus at 80% utilisation, that is 736 million to 1,437 million baht more a year (our calculation).

### How much power could Thai data centres need?

Up to about 30,000 MW if every approved project ran at full capacity, against roughly 55,000 MW of generating capacity, the ERC's secretary-general said. The planned pipeline is about 2.87 GW, mostly in Chonburi, Rayong and Chachoengsao.

## Sources

1. The Nation, "Thai data centre board to review 80% cooling-tower wastewater reuse rule on November 27", 25 Oct 2026. [Link](https://www.nationthailand.com/news/policy/40072717)
2. The Nation, "Thailand approves separate legal definition of data centre buildings", 1 Oct 2026. [Link](https://www.nationthailand.com/news/policy/40071762)
3. The Nation, "Thailand targets mid-October data centre rules with proposed 100 MW hyperscale threshold", 20 Sep 2026. [Link](https://www.nationthailand.com/business/economy/40071260)
4. The Nation, "Thailand pauses 166 data centre projects to rewrite rules", Sep 2026. [Link](https://www.nationthailand.com/business/tech/40070670)
5. The Nation, "Thailand targets data-centre loopholes after Bangkok fuel breach", 3 Sep 2026. [Link](https://www.nationthailand.com/news/policy/40070587)
6. The Nation, "Thailand's Data Centre Boom Tests the Grid, the Rules and the Workforce", 22 Aug 2026. [Link](https://www.nationthailand.com/business/tech/40070053)
7. The Nation, "ERC sets power tariff at 3.95 baht per unit for May-August", 1 Apr 2026. [Link](https://www.nationthailand.com/business/economy/40064550)
8. W.Media, "Thailand freezes construction of 49 data centers; new rules to be unveiled in a month", 4 Sep 2026. [Link](https://w.media/thailand-freezes-construction-of-49-data-centers-new-rules-to-be-unveiled-in-a-month/)
9. Thai Examiner, "Prime Minister scrambles to get data centre sector back on track after energy and regulatory hiatus", 13 Sep 2026. [Link](https://www.thaiexaminer.com/thai-news-foreigners/2026/09/13/prime-minister-scrambles-to-get-data-centre-sector-back-on-track-after-energy-and-regulatory-hiatus/)
10. Eco-Business, "Thailand tightens data centre rules as AI boom strains power grid", 14 Aug 2026. [Link](https://www.eco-business.com/news/thailand-tightens-data-centre-rules-as-ai-boom-strains-power-grid/)
11. Energy Connects (Bloomberg), "Thailand Plans Higher Power Tariffs for Data Center Owners", 15 Jul 2026. [Link](https://www.energyconnects.com/news/utilities/2026/july/thailand-plans-higher-power-tariffs-for-data-center-owners/)
12. Free Malaysia Today, "Johor's data centre boom faces power supply crunch", 23 Oct 2026. [Link](https://www.freemalaysiatoday.com/category/highlight/2026/10/23/johor-s-data-centre-boom-faces-power-supply-crunch)
13. DC Market Insights, Thailand Data Center Market and Thailand Data Center Thermal Management Market reports, Oct 2026. [Link](https://www.dcmarketinsights.com/report/thailand-data-center-market)