Rachada Dhnadirek, Spokesperson of the Prime Minister’s Office, revealed that the Thai Cabinet has given the green light to a new regulation establishing the Data Center Policy Committee, a move designed to steer the country’s booming data center industry while safeguarding national resources and security.
The initiative, proposed by Deputy Prime Minister Pakorn Nilprapunt, is part of Thailand’s broader strategy to leverage the digital economy and attract foreign investment into future-focused industries like data centers.
Amid surging investment interest, power usage requests from data centers have soared to 30,000 megawatts—almost 60% of Thailand’s total generation capacity. To avoid issues faced in countries like the United States, where data center clusters strained power grids and raised consumer electricity prices, the National Energy Policy Committee (NEPC) has introduced several regulatory measures.
For the first time, Thailand will permit Direct Power Purchase Agreements (Direct PPAs) between private parties, enabling clean energy procurement for data center operators without affecting the national grid. The NEPC has imposed three strict rules: mandating separate electricity meters for data centers, requiring advance bonds to ensure committed investment, and obligating independent water management to prevent resource conflicts with local communities.
The policy also aims to ensure any cost burden from heavy energy usage is shouldered by large corporations, not the public, thereby protecting consumers from potential increases in electricity bills.
According to Suwat Sinsadok, Managing Director of Globlex Securities, the segregation of data centers from the public grid will reduce systemic burdens, encourage cost transparency, and enhance investor confidence through predictable power expenses.
Major Thai energy companies poised to gain from these measures include Gulf Development PCL (SET: GULF), Gunkul Engineering PCL (SET: GUNKUL), Ratch Group PCL (SET: RATCH), Global Power Synergy PCL (SET: GPSC), and B.Grimm Power PCL (SET: BGRIM).
The transition to Direct PPA is expected to stimulate competition in efficiency and cost management, empowering data center operators to select the optimal energy sources and operate with greater independence from government intervention.
