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

March 20, 2026

Thailand Ties Data Center Tax Breaks to Workforce and Supply Chain Development

Subscribe to Updates

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, the BOI will conduct two-stage verification. Before using CIT exemptions, applicants must provide evidence of binding commitments, such as agreements with educational institutions or agencies. At full project startup, the BOI will cross-check plans against the BOI application, including any amendments, financial statements, accounting records, and partner confirmation letters.

Outlook

The BOI now ties incentives to measurable local impact. Projects must commit to sustained investment in Thai talent, R&D, and domestic suppliers. Investors should integrate these requirements into project planning from the start to secure and fully benefit from BOI tax incentives.

Related Professionals

Industries

Technology

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

March 29, 2024
Thailand’s Cybersecurity Regulating Committee (CRC) released a notification under the Cybersecurity Act on February 22, 2024, setting key operational obligations for critical information infrastructure (CII) organizations. The notification takes effect on June 20, 2024. CII organizations are state or private entities that carry out services related to national security, public services, banking and finance, information technology and telecommunications, transportation and logistics, energy and public utilities, or public health. CII organizations will be identified by the National Cyber Security Committee (NCSC) and notified of their status. The key obligations of CII organizations are laid out below. Reporting to the National Cyber Security Agency (NCSA) CII organizations must provide the following to the NCSA: A list of executive and operational staff, along with emergency contacts who can be reached within 60 minutes in the event of a cyber threat. The NCSA must be notified of any updates to this list within 15 days following any changes. A list of internal departments or individuals who are the responsible persons, owners, and holders of the computer systems, along with emergency contacts who can be reached within 60 minutes in the event of a cyber threat. The NCSA must be notified of any updates to this list at least 7 days prior to any changes (or within 15 days after the change if there is a necessary reason). Policies, Guidelines, and Procedures As specified in the National Cyber Security Committee (NCSC) guidelines, CII organizations must prepare the following internal documents by June 20, 2025: Cybersecurity practice guidelines, consisting of an inspection plan, risk assessment, and incident response plan. Cybersecurity standards framework, consisting of measures for risk identification, risk prevention, threat detection and monitoring, incident responses, and resilience and recovery. CII organizations must also prepare the following: Mechanisms, procedures, and steps for monitoring and detecting
Read More
March 29, 2024
Vietnam’s Ministry of Public Security (MPS) is drafting two reports to present to the government in May 2024 to advocate for the development and adoption of a Law on Personal Data Protection. These reports include an assessment of the policy impact of the proposal to develop a personal data protection law, and an assessment of the current state of social relations related to personal data protection. Decree No. 13/2023/ND-CP on Personal Data Protection (PDPD), adopted in April 2023, became the first comprehensive legal instrument on data protection in Vietnam. When the National Assembly was debating its text and adoption in 2022 and 2023, questions were raised as to the status of this new regulation and the legality to adopt a decree before a law. In accordance with the public announcements made throughout the development of the PDPD assuring that a law would be developed at a later stage, the MPS is now advocating for the development of a Personal Data Protection Law and has drafted the two reports pursuant to the Law on the Promulgation of Legal Documents. The main arguments advanced by the MPS in the two reports are as follows: As the right to privacy is enshrined in the Constitution, any restrictions thereof must be made through a law and not a decree. The MPS is notably referring to the lawful basis for processing and limited exceptions to consent under the PDPD. This may be a sign that the MPS intends to widen the exceptions to consent under the new law. The definitions of “personal data” and “personal data protection” need to be harmonized to consolidate the regulatory framework. The MPS indicates that there are 69 legal documents directly related to “personal data protection” in Vietnam with more than 10 different definitions, while “personal information” appears in
Read More
March 28, 2024
Recently, Vietnam has witnessed a dramatic increase in cyber fraud, causing significant financial losses and posing a grave threat to both Vietnamese and foreign entities. With the increasing reliance on digital technology and the widespread adoption of online platforms, the country has become fertile ground for cybercriminals to exploit vulnerabilities and conduct various fraudulent activities. This article aims to present an overview of addressing cyber fraud in Vietnam and offers practical advice for businesses to safeguard themselves from becoming victims of such illicit activities.
Read More
March 27, 2024
Two notifications on the cross-border transfer of personal data, issued by Thailand’s Personal Data Protection Committee (PDPC), came into effect on March 24, 2024. These notifications, which we detailed in a previous update, set out the criteria governing the cross-border transfer of personal data offshore, specifically focusing on situations where appropriate personal data protection standards are in place. Of particular importance is the role of binding corporate rules (BCRs) in enabling the cross-border transfer of personal data among affiliated businesses or within the same group of undertakings. The implementation of BCRs requires a comprehensive review and approval process by the Office of the PDPC, strictly in accordance with the criteria set out in one of the two notifications. With the notifications now fully enforceable, the Office of the PDPC has begun accepting BCRs for review. Data controllers and data processors intending to adopt BCRs as a means for transferring data to offshore affiliates or group companies must initiate the BCR submission process promptly. Failure to comply with PDPA requirements concerning the cross-border transfer of personal data could result in substantial penalties. Organizations involved in cross-border personal data transfers should be proactive in complying with the prescribed criteria to avoid these regulatory penalties and maintain the data protection standards mandated by the PDPA. For more information on these cross-border personal data transfer regulations, or on any aspect of complying with Thailand’s data protection laws, please contact Nopparat Lalitkomon at [email protected], Gvavalin Mahakunkitchareon at [email protected], or Wilin Somya at [email protected].
Read More