According to Thai media reports, in order to ensure the investment efficiency of power infrastructure and stabilize the energy supply system, the Thai government plans to introduce new regulatory regulations for investors in high power consuming industries. According to the draft, companies investing in data centers and other projects must provide bank guarantees or asset mortgages to ensure they fulfill their power purchase commitments and prevent domestic power facilities from being idle due to project transfers to other Southeast Asian countries.
The Energy Regulatory Commission has taken the lead in drafting relevant regulations, which will initially mainly apply to data center projects, and the specific guarantee amount standards are still under study. The energy department stated that this move aims to constrain investors from effectively fulfilling the power purchase agreements signed with state-owned power institutions such as the State Grid, and to avoid major infrastructure investments such as power plants and transmission lines being unable to achieve their expected benefits due to project changes.
It is worth noting that this regulation has no retroactive effect, and projects that have been approved by the Thai Investment Promotion Commission will not be affected. At present, the Investment Promotion Commission of Thailand still has 40 high power consumption large-scale projects awaiting approval. Data shows that by 2025, the Thailand Investment Promotion Commission has received a total of 36 investment applications for data center projects, with a total investment scale of 728 billion Thai baht. The investors include large enterprises from the UK, Singapore, Thailand, and Japan.
Secretary General of the Investment Promotion Commission of Thailand, Nali, stated that if the regulation can effectively ensure stable electricity supply, the Investment Promotion Commission will support it in principle. However, he also emphasized that guarantee requirements should not impose an excessive burden on investors.
