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Renewable energy

Thailand Unveils Draft Regulations for Direct PPAs in the Data Center Industry

Strategic Insights

— 1 min read

Thailand's Energy Regulatory Commission has unveiled draft regulations for direct power purchase agreements (PPAs) between data centers and renewable energy producers, seeking to liberalize the energy industry and support data centers in meeting global sustainability mandates. The draft regulations aim to govern the procurement of renewable energy by data centers direct from power producers through the national grid system. The policy, approved by the National Energy Policy Council in June 2024, allows Thailand Board of Investment (BOI)-promoted data centers to quickly procure renewable energy by signing direct power purchase agreements with renewable energy producers.

Key Takeaways:

  • The draft regulations require power producers to use only renewable energy sources or a combination of renewable energy sources and battery energy storage system.
  • Power producers must have a new facility with an installed capacity of at least 1,000 kVA and no existing PPAs with a private or governmental utility operator.
  • Data centers must comply with more conditions, including having received an investment promotion by the BOI, having a minimum IT base load of 50 MW per building, and intending to utilize renewable energy for 100% of their power demand.
  • Data centers must submit a 10-year plan detailing proposed Direct PPAs, grid usage, and total load projections.
  • The facility must not have generated any income at the time of application to the ERC for Direct PPAs quota.
  • Data centers can procure supply from multiple power producers.

Statistics:

  • The data center business attracted a combined investment value of 521.2 billion baht (US$16.1 billion) from 28 projects in the first half of 2025.
  • The renewable energy sector saw 191 applications totalling 42.24 billion baht (US$1.3 billion) of investment in the same period.
  • The Krungsri Bank Industry Outlook 20252027projects an annual average growth rate of 7.58.5 per cent in total revenue for Thailand's data center industry.

Sources:

  • National Law Review (published on October 3)
  • Thailand Board of Investment (BOI) announcement (August 2024)
  • w.media report (August 2024)
  • Krungsri Bank Industry Outlook 20252027: Data Center Industry (released in 2024)

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