Thailand has suspended construction of 49 data centers and temporarily halted approvals for three other projects after complaints about electricity use and impacts on nearby communities.

Officials said new regulations should be announced within a month. Secretary-General Danucha Pichayanan said the rules will cover both operating and planned facilities.

The government is also considering higher electricity rates for large operators and closer scrutiny of projects in densely populated areas.

Bangkok Governor Chadchart Sittipunt said complaints about a data center being built next to a hospital exposed a loophole that let developers get permits for such facilities as warehouses.

The move comes as Thailand says AI-driven data-center growth is straining the power grid, suggesting officials see the issue as broader than a local permitting dispute.

Thailand has 35 operating data centers and 117 proposed facilities awaiting investment approval.

Separately, the Board of Investment, a Thai government agency that promotes investment, approved US$2.7 billion of data-center and cloud-services investments in March 2025.

🔗 Source: Bloomberg