Thailand proposes data center power surcharge, seeks strategic oil reserve partnership

Thailand may require data centers to pay higher power tariffs and contribute to grid upgrades. (Photo: iStock)

Thailand is rethinking its approach to energy security and grid modernization costs. Thailand’s newly appointed Energy Minister Akanat Promphan has proposed new financial obligations for data center operators while pursuing a strategic petroleum reserve (SPR) partnership with Middle Eastern oil producers.

“The wave of data center investment coming into Thailand must be managed carefully,” Akanat said.

Why is Thailand raising power costs for data centers?

Thailand has attracted a growing wave of data center investment in recent years, including USD 3.1 billion in approved projects in January alone, with both global technology firms and regional developers announcing projects across the country. 

Unlock the full article to explore three key takeaways:

1. Thailand is considering higher electricity tariffs and mandatory smart grid contributions for data center operators, with additional revenue used to subsidize household and industrial power bills.
2. Household solar reforms include shortening approval timelines to as little as seven days, expanding the buyback quota from 90 MW to 500 MW, and opening third-party access to the transmission network.
3. The government is also pursuing a strategic petroleum reserve partnership with Middle Eastern oil producers to reduce exposure to disruptions affecting the country’s heavily import-dependent oil supply.