In brief
Thailand's Board of Investment (BOI) has replaced the previous requirement for data center applicants to obtain confirmation from the Energy Regulatory Commission (ERC) with a new approval process under the newly established Sub-Committee for Energy Management to Support Investment and Screen Data Center Projects. While the detailed procedures and assessment criteria have not yet been issued, investors should factor this additional requirement into their project planning and timelines.
In more detail
The BOI has recently updated the requirements for data center projects applying for investment promotion. In March 2026, the BOI introduced a requirement for applicants to obtain written confirmation from the Energy Regulatory Commission (ERC) that sufficient electricity supply would be available to support the proposed data center project before submitting an application to the BOI. This has now been replaced by a new process requiring data center projects to undergo review and obtain approval from the newly established Sub-Committee for Energy Management to Support Investment and Screen Data Center Projects.
This new requirement applies to:
- New data center projects seeking BOI promotion
- Projects whose BOI promotion applications are currently under consideration
- Promoted projects that wish to increase their capacity (IT Load) by more than 30%
The Sub-Committee's role is to assess proposed data center investments, particularly in relation to electricity and water consumption, environmental impact, and overall energy management. The objective is to ensure that such investments support Thailand's long-term energy stability and provide sustainable benefits to the country. At this stage, further details regarding the Sub-Committee's consideration and approval process — particularly application procedures, required documentation, assessment criteria, and indicative timelines — have not yet been issued. Nonetheless, members of the Sub-Committee consist of heads and representatives from various governmental offices and state utilities, including the ERC, the Department of Climate Change and Environment; the Department of Water Resources; the Electricity Generating Authority of Thailand; the Provincial Electricity Authority; the Provincial Waterworks Authority; and the Office of the National Higher Education, Science, Research, and Innovation Policy Council. Therefore, it is expected that prospective data center operators would be required to address concerns regarding electricity and water consumption, environmental impact, and technology transfer, in order to obtain the Sub-Committee's approval.
Investors planning to apply for data center BOI promotion, or to expand an existing promoted data center project, should factor this additional approval step into their project planning and timelines.
We will continue to monitor further developments and provide updates as more information becomes available.
Should you require legal assistance in relation to this new requirement or BOI applications for data center projects in Thailand, please contact our team.
* * * * *
Chana Sooppipat, Associate, has contributed to this legal update.