Thailand Establishes Data Center Regulatory Body to Oversee Impact on Utilities, Resources, and Environment

The Thai Cabinet has approved the establishment of a specialized committee to oversee and regulate the country’s rapidly growing Data Center industry. Chaired by a designated Deputy Prime Minister with key ministers from Digital Economy and Society, Interior, and Energy serving as vice-chairpersons, the board is designed to ensure that large-scale data facilities do not negatively impact public utilities, natural resources, or the environment. The newly formed committee will govern data centers across five critical dimensions: energy security, resource allocation, urban planning, data safety, and impact mitigation mechanisms. Its primary goal is to balance economic growth with sustainable practices by preventing these power- and water-intensive facilities from straining national resources, while promoting clean energy usage, fair pricing, and national data sovereignty. In terms of infrastructure, the Cabinet has approved a budget of approximately 7.2 billion Baht to construct the Khlong Wang Tanot Reservoir project in Chanthaburi. Scheduled to run over a 7-year period from fiscal years 2027 to 2036, the reservoir will feature a storage capacity of 99.50 million cubic metres. The project aims to supply over 87,700 rai of irrigated land with water, bolstering long-term resource management to support domestic consumption, agriculture, and industrial expansion within the Eastern Economic Corridor (EEC). Additionally, strict adherence to environmental regulations and legal requirements, particularly concerning forest reserve and national park land permits, has been mandated. Furthermore, the Songkhla monorail project, spanning 12.54 kilometers and designed to alleviate traffic congestion and systematically connect regional transportation networks in the southern province, has received approval in principle. The strategic center of the project will be at Khlong Wa Station, functioning as the primary maintenance depot and a major transit hub. Three intermodal transfer hubs are also planned to facilitate seamless travel and promote public transportation usage. Regarding implementation, the Bureau of Budget advised that the Ministry of Transport and the MRTA carefully study public-private partnership (PPP) models, determine appropriate state investment proportions, and prioritize urgency based on fiscal responsibilities. Meanwhile, the Office of the Council of State confirmed that the Cabinet can legally approve the draft royal decree for the project. This development marks a vital step forward in bolstering regional connectivity and stimulating economic growth in southern Thailand. At the Ministry of Commerce, Poonpong Naiyanapakorn, currently Director-General of the Department of Business Development, has been appointed as the new Permanent Secretary for Commerce. Announced by Deputy Prime Minister and Minister of Commerce Supajee Suthumpun, this high-level bureaucratic reshuffle is designed to replace officials facing mandatory retirement, specifically succeeding Wuttichai Leewira Phan. Poonpong brings extensive experience to the role, having previously held key positions such as Deputy Permanent Secretary and Director of the Trade Policy and Strategy Office. The Ministry of Commerce expressed confidence that his leadership will ensure administrative continuity and effectively drive economic policies, business development, and public welfare initiatives forward. Additionally, the Thai Cabinet has approved a budget of 14.7 billion Baht for the Lower Phetchaburi River Basin Flood Alleviation Project, aimed at permanently resolving chronic flooding issues in Phetchaburi province. Overseen by the Royal Irrigation Department under the Ministry of Agriculture and Cooperatives, the 10-year project (spanning fiscal years 2027–2036) involves constructing and improving drainage canals across a total length of 38.92 kilometers—stretching from north of the Phetchaburi Barrage in Tha Yang district to the Gulf of Thailand in Cha-am district. Designed to protect over 33,690 rai of land, the initiative will enhance water drainage capacity, create new water sources, and mitigate disaster damages. Because the drainage route crosses approximately 162 rai of mangrove forests, the Cabinet also granted a waiver allowing land utilization under strict environmental monitoring protocols. Furthermore, the government has instructed relevant agencies to expedite fair land acquisition, provide transparent compensation, and foster active public participation to ensure the project’s success. Regarding development plans for the South, the Thai Cabinet has acknowledged the withdrawal of the Chumphon-Ranong Land Bridge project agenda and approved the establishment of a new committee to formulate a master plan for southern development. Siriphong Angkhasakulkiat, Deputy Minister of Transport, clarified that a final decision on whether to officially cancel the massive project has not yet been made, despite preliminary studies indicating low economic viability. This newly formed committee is tasked with gathering comprehensive feedback from all local sectors and reviewing the overall direction for the region’s infrastructure. The panel has been given a one-year timeframe to finalize its findings and present a definitive policy recommendation for the current government to act upon. Source: Thai Enquirer