Thailand halts AI data centre boom, vows airtight rules after diesel stockpile scare

Thailand has announced plans to introduce stricter rules for artificial intelligence (AI) data centres amid growing concerns over the rapid expansion of the sector. The Southeast Asian nation is attracting interest from both local and foreign investors, with tech giants pouring billions of dollars into the region to capitalize on the increasing demand for AI services.

However, the lack of regulation in recent years has raised concerns over the environmental impact of these centers, including their high electricity and water consumption, as well as their potential effects on local communities.

Prime Minister Anutin Charnvirakul emphasized the need to align regulations with national interests and ensure public safety. The government has formed a new committee to revise and strengthen regulations for AI data centres while the current construction of 49 projects is paused until the new rules take effect, expected to be released next month.

Currently, 35 data centres operate in Thailand, with another 49 in various stages of construction, 11 approved and 117 under review. Microsoft has pledged to invest over $1 billion in Thailand's cloud and AI infrastructure over the next two years, while Google launched a data center region in Bangkok in January, projecting to generate $40 billion in revenue for the country within five years.

However, the government has expressed concerns about the lack of oversight. Recently, the Energy Ministry highlighted the stockpiling of 200,000 liters of diesel in an underground tank at a Bangkok data centre, which was found to be operating without proper authorization. Bangkok Governor Chadchart Sittipunt reported six applications for standalone data centres, with three already in operation since 2022, and the remaining three pending review.