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Thailand weighs financial guarantees, higher power tariffs for data center developers

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Thailand plans to tighten rules for data center development to prevent rising power demand from pushing up electricity bills for the public. (Photo: iStock)

Data centers are notorious power guzzlers, but they are also a priority industry for Thailand. Seeking to strike a balance, the country’s Energy Regulatory Commission (ERC) is considering requiring developers to post a guarantee and pay higher electricity tariffs to safeguard power supplies and prevent the sector’s rapid expansion from driving up household electricity bills

The new rules are expected to take effect in the fourth quarter, signaling Thailand’s shift from pursuing scale to prioritizing the quality of investment.

Thailand plans special committee to oversee data center rules

Thailand’s cabinet on Aug. 5 approved a draft Prime Minister’s Office Regulation that would establish a Data Center Business Policy Committee chaired by a deputy prime minister. The committee would be responsible for setting rules governing data centers’ electricity and water use, as well as reviewing and issuing relevant licences.

Unlock the full article to explore three key takeaways:

  1. ERC proposes a 4.5 million baht (about USD 135,800) per MW guarantee to curb "phantom loads"
     
  2. New projects must reach commercial operation within 5 to 7 years under a dedicated Category 9 tariff
     
  3. Rules are expected to take effect in Q4 2026, possibly applied retroactively to all operators
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