Thai authorities have suspended 49 planned data center campuses due to insufficient local grid capacity and transmission bottlenecks.

Thailand has suspended construction on 49 data center projects amid public concerns over high power consumption and community impact. The regulatory pause, reported by Bloomberg and announced by Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, aims to establish new, sustainable operating standards for the sector within a month. The move highlights intensifying scrutiny on power-intensive digital infrastructure.

During the suspension, officials will develop updated industry regulations designed to foster a more sustainable data center environment. Finance Minister Ekniti Nitithanprapas clarified that Thailand is not closing its doors to data center investment, acknowledging the industry’s importance for national competitiveness. He emphasized the need for clear and consistent standards to ensure sustainable growth, adding that the government plans to establish uniform oversight for both operational and developing facilities.

The pause follows significant recent capital inflows into the sector. In May, the Board of Investment (BOI) approved TikTok System (Thailand)’s data infrastructure expansion. Overall, Thailand’s BOI approved 88 projects related to artificial intelligence and data centers in the first half of the year, attracting a total investment of 886 billion baht (US$27 billion). This figure has already surpassed the 623 billion baht recorded for the entirety of 2025.

Immediate pressure for the halt emerged in Bangkok after three data center facilities were found under construction adjacent to a hospital, leading to their suspension. Looking ahead, Thai authorities are also considering increasing electricity rates for large data center operators to better align energy pricing with infrastructure demands.