Bangkok Halts Three Data Centre Applications Amid Regulatory Gaps

Bangkok has suspended three applications for large stand-alone data centres following concerns over fuel storage, pollution and construction near communities, as nationwide investment applications in the sector reach 728 billion baht. Governor Chadchart Sittipunt said Bangkok has an estimated 30–40 data centres, mostly older facilities located inside company buildings and covered by ordinary building permits. Six newer stand-alone projects have applied separately since 2021-22. Three were approved in 2022-23, while the other three were suspended for review. One project near Rama IX Hospital covers about 19,000 square metres, comprises two buildings and has a planned capacity of 20 megawatts. Its first phase was expected to open this year. The project’s construction was legally notified as a high-rise, extra-large building for use as a warehouse, electronic data-storage centre and offices. However, it has not received separate approval to operate backup generators or store fuel. Residents reported oil odours between 5am and 11am for about two months, particularly in July, and oil in nearby drains. The source has not been confirmed. Residents called for air and wastewater testing and said they were unaware of any public consultation. Chadchart said the absence of a legal definition had allowed developers to register data centres as warehouses, avoiding environmental impact assessments and industrial factory licences. The government formally defined data centres on Aug 13, allowing authorities to begin revising planning and environmental rules. The Metropolitan Electricity Authority said a Bangkok data centre with a nominal capacity of 20MW typically used about 8MW, compared with about 100MW for a large shopping centre or mixed-use project. The Metropolitan Waterworks Authority said a large data centre used about 7,000 cubic metres of water per month, compared with 20,000 cubic metres for a major hospital and 30,000–40,000 cubic metres for a large shopping centre. Officials said existing Bangkok facilities had not significantly affected electricity or water supplies, although authorities would continue monitoring their resource use and the possible discharge of heated water. Data centres must maintain fuel for up to 48 hours of backup electricity. Businesses may store up to 500,000 litres for their own use, while larger reserves are classified as oil depots and are not permitted under Bangkok planning rules. A separate facility on Ramkhamhaeng Soi 28 has capacity for about 400,600 litres of fuel but is authorised to store only about 200,000 litres. Unauthorised storage carries up to two years in prison and a fine of 200,000 baht. The National Economic and Social Development Council said Thailand has 42 commercially operating data centres and has received applications for 36 data centre and cloud-service projects worth 728 billion baht. More than 60% of the investment goes towards largely imported IT equipment, leaving Thai businesses concentrated in construction, land development and utilities. The NESDC warned that Thailand still lacked a lead regulator, environmental rules and enforcement mechanisms for the sector. It recommended mandatory environmental assessments and resource-use reporting, electricity and water consumption targets, local-content requirements, workforce training, renewable energy use and community participation. The council noted that data centres accounted for 21% of Ireland’s electricity consumption in 2023, warning that continued expansion could place pressure on domestic power and water supplies. New fuel-storage permits for data centres have been suspended pending national regulations. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas is due to convene the national data centre policy board on Friday, Sept 4. The post Bangkok Halts Three Data Centre Applications Amid Regulatory Gaps appeared first on Thai Enquirer.