Thailand's government has suspended construction of 49 data centres to allow time for new industry regulations to be developed, expected within a month. The decision followed the first meeting of a newly formed data centre supervision commission, chaired 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."

The freeze reflects mounting concern about the human and environmental costs of rapid tech expansion. Authorities are scrutinising the impact of data centres on densely populated areas, including central Bangkok, where a facility allegedly built next to a hospital exposed a regulatory loophole permitting such developments to obtain permits as warehouses. Bangkok Governor Chadchart Sittipunt called for environmental impact assessments of data centres, having already temporarily halted approvals for three projects following community complaints.

The government is also weighing higher electricity tariffs for large operators, as data centres' significant consumption of power and water raises concerns for local communities. Thailand has approved 88 data centre and AI-related projects worth 886 billion baht in the first half of the year alone, with major investors including Google, Amazon, Microsoft, and TikTok. Globally, at least 75 data centre projects worth a combined US$130 billion were blocked or delayed in early 2026 due to local opposition, with communities citing environmental harm, resource depletion, and broader risks to employment posed by artificial intelligence.