In brief
The National Broadcasting and Telecommunications Commission (NBTC) is considering reclassifying data center services from a Type 1 to a Type 3 telecommunications business, which would be subject to different telecommunications licensing terms which include foreign ownership restrictions.
This change has not yet taken effect and is based on news reports suggesting an early-stage regulatory initiative, with no official announcement from the NBTC. If pursued, multiple procedural steps would be required, including assessing the impacts on existing license holders.
The change could significantly impact shareholding structures, operations, and future investments of data center operators and related stakeholders, including data hosting providers, cloud service providers, and users in Thailand.
It is targeted for implementation by the end of 2026 and would be subject to public consultation before finalization.
In more detail
According to news reports dated 25 March 2026, the Acting Secretary-General of the NBTC, the telecommunications regulator, indicated that the NBTC is considering reclassifying the operation of data center services from a Type 1 telecommunications business — of which foreign majority ownership is permitted — to a Type 3 telecommunications service, which is subject to different license terms which require Thai majority ownership.
This proposed change is intended to regulate data center operators in a manner similar to infrastructure‑based operators (e.g., mobile and submarine cable services), including the imposition of comparable regulatory obligations and annual licensing fees.
According to the NBTC, the primary rationale for the proposal is to manage long‑term energy and infrastructure impacts and to prevent misuse of data center facilities, including concerns raised by financial institutions regarding investment risks and the potential use of data centers for unlawful cross‑border communications (e.g., online fraud).
If the NBTC proceeds with reclassifying data center services from a Type 1 to a Type 3 telecommunications business, both current and future data center operators and investors — especially those with foreign majority ownership — would be directly impacted. Type 3 telecommunications business licensing requires Thai majority ownership, meaning foreign-owned entities would face new restrictions and could be required to restructure their shareholding and operational models. Given the substantial market presence of foreign-owned data center operators in Thailand, such regulatory changes could lead to significant adjustments in ownership, business operations, and future investment strategies.
The matter is expected to be submitted to the NBTC Board for consideration in the near future. The proposed change is targeted to take effect by the end of 2026 and will be subject to public consultation prior to finalization.
Implications for businesses
The situation remains preliminary, and there is still uncertainty regarding the NBTC's next steps. Consequently, it is recommended that data center operators and other stakeholders, including data hosting providers, cloud service providers, and users of data center services, remain vigilant and keep track of ongoing regulatory developments. Once a draft regulation is released for public consultation, it will be important for stakeholders to actively participate by providing their feedback and comments.
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Teetouch Dilokgomon and Pirun Suttiprapha, Associates, have contributed to this legal update.