Thailand halts new data centre approvals amid resource strain concerns

Thailand's cabinet has suspended permits for 49 planned data centres, signalling a major shift in the country's approach to the booming sector. The freeze comes as government officials grapple with the substantial strain these facilities place on the nation's power grid and water supplies.

Data centres consume vast quantities of electricity for cooling systems and computing infrastructure, while also requiring significant water resources for operational cooling. With Thailand facing competing demands on its energy and water systems, policymakers have determined that current approval rates are unsustainable without risking broader resource shortages.

The decision reflects a broader reassessment of Thailand's digital infrastructure strategy. While the country has sought to position itself as a regional hub for data centre operations and cloud services, the environmental and resource implications of unchecked expansion have forced government officials to implement more stringent oversight.

No timeline has been provided for when new data centre approvals may resume. The freeze is expected to impact both domestic operators and international companies seeking to establish facilities in Thailand, though existing data centres remain operational.