Thailand asks data center operators to suspend 49 buildouts until legal framework is complete — new legislation is supposed to create 'airtight' requirements for large-scale data centers

Thailand has asked data center operators to halt 49 construction projects until a comprehensive legal framework is in place. The move comes as the government seeks to create more precise regulations for these facilities, which have faced criticism over power usage, water consumption, and noise. Currently, Thailand lacks specific data center laws, leading to legal inconsistencies such as zoning data centers near hospitals.

Despite the pause being technically indefinite, the government aims to draft a regulatory framework by September 11, though delays could negatively impact both the industry and the country's competitiveness. The new legislation is expected to address power consumption, closed-loop cooling, and water-surplus guarantees. While companies may choose to proceed with their projects, assuming compliance with the upcoming regulations or hoping for future legal victories, non-compliance could result in regulatory delays and increased costs.

Thailand recently revised its laws on industrial power delivery, requiring data center builders to place a deposit of up to $134,000 per megawatt to secure power capacity, with refunds based on actual usage. Water consumption remains a significant concern, as existing regulations allow data center operators to negotiate directly with utilities without additional safeguards.