Thailand suspends building of 49 data centres as resource strain concerns grow

Thailand’s embrace of data centres hit a speed bump after the government suspended construction of 49 server farms as public concerns about the power-hungry facilities’ impact on communities intensify.

The projects were halted to give officials time to develop new industry regulations, expected to be announced in a month, Danucha Pichayanan, secretary general of the National Economic and Social Development Council, said at a press briefing on Friday. Danucha spoke after the first meeting of the country’s data centre supervision commission, led by Finance Minister Ekniti Nitithanprapas.

“Today’s decision doesn’t mean Thailand is closing the door to data-centre investment because the industry is critical to the country’s competitiveness,” Ekniti said. “We simply want clear and consistent standards in place to ensure the industry can grow sustainably.”

Thailand would establish uniform oversight of data centres in operation as well as those being developed, Danucha said.

Governments the world over are tightening oversight of data centres as the rapid adoption of artificial intelligence has led to a surge in such facilities. Global data centre spending is set to reach US$31.6 trillion through 2050 to meet the world’s growing appetite for AI, an investment boom with no precedent in history, according to PricewaterhouseCoopers.

At the same time, the tech industry, led by US giants such as Microsoft and Amazon.com, is trying to blunt a backlash against data centres that threatens to slow the buildout. At least 75 projects, worth about US$130 billion combined, were blocked or delayed by local opposition during the first three months of this year, according to research group Data Centre Watch. Protesters cite concerns about environmental impact, resource consumption and more broadly how AI could upend employment and society.