New rules to boost data centre power

Requirements from investors increased

The Energy Regulatory Commission (ERC) has finished drafting requirements for investors in data centres and other electricity-intensive businesses, mandating bank guarantees or collateral to secure power purchases.

Energy officials said the measure is designed to prevent investors from shifting projects to rival Southeast Asian countries competing for data centre investment.

The regulation aims to ensure investors follow through on commitments to buy electricity from state utilities such as the Provincial Electricity Authority, and avoid leaving costly power infrastructure underutilised.

ERC secretary-general Poonpat Leesombatpiboon explained that the guarantee has been set at 4.5 million baht per megawatt.

Refunds will be issued if usage targets are met: 50% of the guarantee will be returned if half of the proposed electricity consumption is achieved within one year, while full refunds will be granted if usage reaches 70%.

The Energy Policy Administration Commission has approved the guarantee size, which will be submitted to the new government.

Initially, the rules will apply to data centres, with other industries to follow later.

Officials emphasised that the regulation is necessary because investment in electricity supply infrastructure — covering power plants, substations, transmission, and distribution lines — requires massive government funding.

The ERC had planned to submit the draft late last year, but the process was delayed by the dissolution of parliament and subsequent political developments, including the global oil price surge linked to the war in the Middle East.

The rule will not apply retroactively to projects already approved by the Board of Investment (BoI).

However, it will extend to data centre operators under the government’s pilot direct power purchase agreement scheme, allowing them to buy electricity directly from private producers.

BoI secretary-general Narit Therdsteerasukdi stressed that the collateral requirement should not place an excessive burden on investors.

The board supports the regulation if it ensures reliable power distribution.

Last year, 36 data centre development projects worth 728 billion baht were submitted to the BoI for investment promotion, including hyperscale developments from the UK, Singapore, Thailand, and Japan.

The ERC’s move reflects Thailand’s bid to secure its position as a competitive destination for data centre investment.

According to officials, by requiring collateral the government hopes to safeguard public spending on energy infrastructure while reassuring investors that the country can provide reliable electricity supply for large-scale digital projects.