Thailand suspends construction of 49 data centers over resource strain concerns

On September 4, 2026, Thailand suspended the construction of 49 data centers to draft new industry regulations within a month, addressing public concerns over resource strain and community impacts. The decision, led by Finance Minister Ekniti Nitithanprapas, aims to establish uniform standards for the sector, which saw 886 billion baht in approved investments in early 2026. Similarly, South African civil society groups are calling for a halt to data center construction over water and power fears.

Thailand data center construction suspension

• ▪The suspension of the 49 data center projects was announced by Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, following the first meeting of Thailand's data center supervision commission.
• ▪Thailand currently has 35 data centers in operation, while 117 proposed facilities are awaiting investment approvals, according to National Economic and Social Development Council secretary-general Danucha Pichayanan.
• ▪In the first six months of 2026, the Thai government approved 88 projects related to artificial intelligence and data centers, totaling 886 billion baht in investment.
• ▪On September 4, 2026, the Thai government suspended the construction of 49 data center projects nationwide to allow officials to develop new industry regulations.

Resource strain concerns

• ▪Thai officials are considering higher electricity rates for large data center operators to reflect direct and indirect costs and prevent impacts on public electricity tariffs.
• ▪The Thai Ministry of Energy will require data centers to adhere to clean energy standards to support the country's net-zero carbon emissions goals.
• ▪The Thai Ministry of Energy plans to establish specific electricity rates for data centers to reflect the cost of importing natural gas, following a July 15, 2026 resolution by the National Energy Policy Council.

Community impact concerns

• ▪Bangkok Governor Chadchart Sittipunt temporarily halted approvals for three data center projects in central Bangkok following public complaints about a facility being built next to a hospital.
• ▪Thai pollution control officials confirmed that a data center in the Rama IX area of Bangkok caused an oil leak during system testing in mid-July 2026, leading to fuel odors in public drainage systems.
• ▪A data center in the Ramkhamhaeng 28 area of Bangkok faced opposition after opposition Member of Parliament Supanut Minchainunt revealed it was permitted as a warehouse but had fuel storage capacity for up to 400,600 liters of oil.

New regulatory framework development

• ▪The new regulatory framework will require data centers with a power capacity of 2 megawatts or more to be classified and regulated as industrial businesses.
• ▪The Thai government plans to establish four subcommittees covering economy, infrastructure (water, electricity, power, digital), location and building safety, and environment to draft the new regulations.
• ▪The Thai Ministry of Interior announced it will delay new data center construction permits and utility connection approvals until the supervision commission establishes its new regulatory guidelines.
• ▪The Thai government's data center supervision commission, led by Finance Minister Ekniti Nitithanprapas, aims to draft and announce new industry regulations within one month.

Global data center oversight trend

• ▪According to PricewaterhouseCoopers, global spending on data centers is projected to reach $31.6 trillion through 2050 to support the growth of artificial intelligence.
• ▪Research group Data Center Watch reported that local opposition blocked or delayed at least 75 data center projects globally, worth a combined $130 billion, during the first three months of 2026.

South Africa civil society opposition

• ▪Civil society groups in South Africa raised concerns over a planned Equinix hyperscale facility in Cape Town, which is estimated to require 160 megawatts of electricity.
• ▪The South African Human Rights Commission received over 250 submissions from interested groups after issuing a call for input regarding data center developments in May 2026.
• ▪South African President Cyril Ramaphosa stated that South Africa hosts 70 percent of Africa's data center capacity.
• ▪Civil society groups in South Africa are calling for a temporary halt to new data center construction until investigations are conducted into their consumption of water, land, and electricity.

Debatable claims

• ▪Large data centers should be legally classified as industrial businesses
• ▪Governments should charge data centers higher electricity rates than other industries
• ▪Thailand was justified in suspending construction of 49 data centers