Bangkok: Support is mounting for the establishment of a dedicated 'data center board' to regulate water and electricity usage in Thailand's burgeoning data center industry. Experts have highlighted existing legal loopholes that could potentially jeopardize energy resources and shake investor confidence.
According to Thai News Agency, academics from Thammasat University have emphasized the need for the Data Center Board to develop comprehensive policies and guidelines swiftly. While recent adjustments to the Board of Investment (BOI) criteria, aimed at controlling environmental impacts and resource usage, are seen as a step in the right direction, experts warn that these measures alone are insufficient. Associate Professor Dr. Surasak Boonruang from the university's Center for Natural Resources and Environmental Law stressed the urgency of issuing clear policy frameworks and guidelines, pointing out that current regulations are plagued by ambiguities and loopholes.
Thailand currently lacks specific regulatory guidelines tailored for data center operations, forcing agencies like the Ministry of Natural Resources and Environment and the Energy Regulatory Commission to rely on outdated laws. These laws provide limited control, especially concerning the Environmental Impact Assessment (EIA) requirements, which do not automatically apply to data centers with high energy or water consumption. This regulatory gap could lead to unchecked growth in regions like Bangkok and the Eastern Economic Corridor, potentially straining local resources and infrastructure.
Moreover, the classification of data centers under laws like the Factory Act remains unclear, particularly concerning their water permits for cooling systems. Large data centers, which consume significant water resources, may evade current permitting requirements due to this ambiguity. The concentration of data centers in high-demand areas raises concerns about resource competition and potential conflicts over water and energy supply, necessitating a more robust regulatory framework.
Short-term adjustments to existing laws, such as requiring EIAs for large data centers and mandating reports on resource usage and environmental impacts, could mitigate some issues. However, if the data center sector continues to expand, specific legislation may be required to manage future challenges effectively.
Dr. Surasak also cautioned that while the Data Center Policy Committee's formation signals a governmental commitment to responsible regulation, its current structure—with a Deputy Prime Minister as chairman and ministers from various ministries as members—might delay policy implementation. The risk of prioritizing investment over stringent regulation could compromise both the energy system and national confidence if not addressed promptly.
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