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Thailand Moves to Regulate Data Centers as Industrial Factories

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Thailand Moves to Regulate Data Centers as Industrial Factories

The Department of Industrial Works is preparing to classify data centers as industrial factories, requiring new facilities to obtain specific permits and environmental assessments.

According to a report by Prachachat Business, the Department of Industrial Works is moving forward with a proposal from the Data Center Policy Committee to categorize data centers as industrial factories. Under this new classification, data centers would be designated as 'Type 108' factories.

This regulatory shift would require operators to obtain a 'Ror Ngor 4' factory license and conduct an Environmental Impact Assessment (EIA). Furthermore, the policy suggests that future data center facilities must be located within designated industrial estates.

For residents and expatriates, this development highlights Thailand's growing role as a digital hub in Southeast Asia. While the move aims to standardize the infrastructure supporting the country's digital economy, it may influence the pace of future tech infrastructure development and energy consumption patterns in specific industrial zones.

It remains to be confirmed how these regulations will apply to existing data centers already in operation and what the specific timeline for the implementation of these licensing requirements will be. Stakeholders are currently awaiting further details on the transition process and whether any exemptions will be granted for smaller-scale facilities.