You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 10, 2026

Data Center Investments under Thailand’s Updated Incentive Criteria

Subscribe to Updates

Data center and cloud investments are forming a major focus of private-sector investment in Thailand, with tech giants like Amazon, Google, Microsoft, and TikTok, as well as numerous telecom and data center companies, committing significant outlays to data center and cloud development. The country’s Board of Investment (BOI) approved projects worth THB 1.87 trillion in 2025, and THB 746 billion of this was from planned data center investments—by far the largest amount from any single industry.

Thailand’s swift rise as a regional data center hub is fueled by surging demand for cloud, AI, and digital services, as well as large-scale investments from global tech firms. The country’s strategic location, competitive power costs, robust fiber infrastructure, expanding IT talent, and supportive government policies—including BOI incentives and streamlined approvals—have made it an attractive destination for scalable and sustainable digital infrastructure investments. The BOI’s proactive approach in updating promoted categories and providing both tax and non-tax incentives further ensures Thailand’s continued growth in this sector.

2025 BOI Changes for Data Centers

In the middle of 2025, the BOI responded to the remarkable trend by updating investment‑promotion categories across various sectors (e.g., machinery and electrical equipment, public utilities, digital and innovative industries) to accommodate growing investment in data‑center projects.

Before the change, which was detailed in a notification that has applied to investment promotion applications submitted from July 1, 2025, onward, data‑center projects under BOI promotion were granted a single A1 incentive (an eight‑year corporate income‑tax exemption) and subject to one uniform set of conditions.

The July 2025 notification restructured promotion for data centers into two categories based on power‑usage efficiency: high‑efficiency data centers and other data centers. Under these rules, qualified high‑efficiency data centers are eligible for an eight‑year corporate income tax (CIT) exemption, while for other data centers this exemption is five years. Both exemptions are capped at 100% of the project’s investment value as defined by the BOI.

Whether a data center is considered “high efficiency” or “other” depends on its power usage effectiveness (PUE), the planned efficiency of its water usage, and its ability to demonstrate tangible benefits for Thailand, such as in areas of training, research development, and supporting domestic capability and supply chains, among others.

The extensive list of other conditions that data centers must meet in order to seek BOI incentives continues to apply to all data center projects.

Outlook

Investors pursuing data center projects in Thailand should carefully assess project plans and operations against the current BOI criteria, particularly for those aiming to qualify for the higher corporate income tax exemption. Projects targeting this enhanced incentive should validate design and operational plans to ensure they meet the PUE and sustainability requirements under the prevailing investment promotion framework. Staying fully informed and seeking up-to-date guidance on these criteria will help ensure projects are structured for maximum benefit and regulatory compliance.

Related Professionals

Industries

Energy

Technology

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

March 20, 2026
Thailand’s Board of Investment (BOI) now requires data center projects to demonstrate measurable benefits for local workforce development, R&D, SME capability, and domestic supply chains to qualify for corporate income tax (CIT) exemptions. BOI Notification No. Por. 3/2569, issued on February 6, 2026, updates the requirements for projects seeking promotion under BOI category 8.2.1 (data centers). All data center projects must now submit and implement plans covering development of Thai human resources and domestic supply chain support before benefiting from any CIT exemption. Human Resources Development Plan The BOI seeks to promote local talent development beyond basic training. Plans must include the following elements: Training for data center design, construction, and operations targeting vocational students, engineering and ICT undergraduates and postgraduates, and energy and building personnel in Thailand. Joint curricula with Thai universities and technical institutes. Collaborative R&D with Thai nationals or institutions in areas including AI, resource allocation, high-performance computing, and data center hardware and systems. Thai SME upskilling in electrical and energy systems and IT services. Domestic Supply Chain Support Plan Plans must demonstrate knowledge transfer in design, construction, cooling, security, and power and water management. Projects must also include usage or installation of domestically manufactured equipment or engage specialist domestic entities. Criteria for BOI Evaluation The BOI will assess data center operators’ eligibility for CIT incentives based on two criteria: Scale requirement: Training and joint-curriculum initiatives must reach a total participants equal to at least 10 times the project headcount and run for the duration of the CIT incentive. If this threshold is not met, the applicant must also implement continuous R&D or SME skills-development plans throughout the incentive period. Substantiality test: Supply-chain plans must be substantive, meet industry standards, and show measurable development of the domestic digital and data center supply base. To ensure compliance,
Read More
March 19, 2026
Thailand’s Electronic Transactions Development Agency (ETDA), which describes itself as a “co-creation regulator” working collaboratively with industry rather than imposing top-down rules, has unveiled its regulatory roadmap for digital platform businesses under the Royal Decree on Digital Platform Service Businesses B.E. 2565 (2022). The 2026 regulatory approach is guided by three core principles—“practicable, verifiable, shared responsibility”—aimed at elevating digital services to be safe, transparent, and fair. These principles inform ETDA’s 2026 priorities, which focus on three key dimensions: product and service standards on platforms, fair competition and fee transparency, and online fraud prevention. Product and Service Standards ETDA’s 2026 agenda addresses product and service standards across several platform categories: Online marketplace platforms. The Notification on Additional Measures for Online Marketplace Platforms under Section 18(2) came into force on December 31, 2025, designating 21 marketplace platforms that must verify products and merchants. Among other obligations, covered platforms must remove or suspend substandard products under the “notice and take down” principle. The ETDA has collaborated with the Food and Drug Administration and the Thai Industrial Standards Institute to develop inspection manuals and coordinate compliance procedures. Social commerce. The ETDA is preparing a new notification under Section 18(2) specifically targeting social commerce platforms with sales support functions, aiming to align regulation with evolving digital market conditions. Ride sharing. Since the postponement of the deadline to comply with the ETDA’s notification on ride-sharing platforms to March 31, 2026, the ETDA has supported drivers in registering with the Department of Land Transport through the Driver Verify registration system, which has already issued certifications to approximately 27,900 riders. The ETDA is also examining structural issues relating to appropriate insurance packages, motorcycle engine capacity expansion, and fair leasing fees and contract transfer costs in coordination with the Department of Land Transport, the Office of Insurance Commission,
Read More
March 19, 2026
Thailand’s Personal Data Protection Committee (PDPC) has launched a public consultation period to gather input for a forthcoming set of guidelines under the country’s Personal Data Protection Act (PDPA). This initiative follows the PDPC’s issuance of guidelines on consent and notification requirements in September 2022. The main consultation period, using an online questionnaire to gather feedback, runs until March 23, 2026. In addition, an interview-style online session for private-sector participants was held on March 17, and a two-day in-person event will be held on April 1–2—this is already fully booked and  walk-ins will not be accepted, but the session will be livestreamed on the PDPC’s Facebook page. The PDPC will use the public feedback to design draft guidelines that accurately reflect the operational realities of both public and private organizations, after which the guidelines will be shared with the public. Consultation Scope The PDPC has identified six priority areas for which upcoming guidance may be issued: Legal bases for processing: The online questionnaire assesses respondents’ understanding of consent requirements and seeks views on priority issues, such as explanations of the legal bases and considerations for selecting an appropriate legal basis depending on the nature of the processing activity. Security measures and data breach notification: The questionnaire examines respondents’ understanding of data breach reporting and security measure obligations. Topics proposed for inclusion in the guidelines include data breach prevention measures, incident response plans, risk assessment methods, and reporting procedures. Data protection officers: Respondents are invited to share their expectations regarding the DPO’s role and their experiences in contacting a DPO. The survey also asks respondents to identify priority issues, such as response timeframes for data subject requests and complaint procedures. Marketing and direct marketing: The online questionnaire seeks input on preferred topics for guidance, including individuals’ rights to refuse marketing
Read More
March 16, 2026
Thailand’s Securities and Exchange Commission (SEC) has broadened the definition of institutional investors, expanded the types of qualifying investments, and updated financial qualification thresholds for various investor categories through a revised notification on the definitions of institutional investors, ultra-high net worth investors, and high net worth investors. The amended framework, which came into force on March 1, 2026, adds digital asset business operators, investment planners, and investment consultants to the roster of entities recognized as institutional investors, and broadens the definition of investment to account for digital tokens. Expanded Definition of Institutional Investors Under the SEC’s revised notification, the category of institutional investors now expressly includes digital asset business operators licensed under the Royal Decree on Digital Asset Businesses B.E. 2561 (2018). This addition recognizes the growing role of digital asset platforms and service providers in Thailand’s investment ecosystem and aligns the regulatory treatment of digital markets with that of traditional markets. The definition of institutional investors now also encompasses investment planners and investment consultants approved by the SEC. Previously, only SEC-approved investment analysts held this status; the expansion covers a broader scope of professionals who possess comparable expertise and experience in evaluating investment opportunities. Broadened Investment Definition The revised framework now defines investment to mean direct or indirect investment in a wider range of assets beyond deposits. Specifically, the definition covers: Securities under the Securities and Exchange Act Derivatives under the Derivatives Act Investment tokens offered to the public Government-issued digital tokens (G-tokens) as specified in a separate SEC notification This expansion ensures that financial status assessments reflect the full spectrum of an investor’s holdings, including emerging digital assets. Updated Financial Qualification Thresholds The amended SEC notification also provides updated qualification thresholds for angel investors, ultra-high net worth investors, and high net worth investors. While the core criteria
Read More