Data centre investors eye stricter power purchase rules

Thailand plans to tighten the rules for investors in data centres and other businesses that use a large amount of electricity, requiring them to provide a bank guarantee or collateral to secure power purchases.

- YUTHANA PRAIWAN

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

The Energy Regulatory Commission (ERC) drafted the regulation, initially targeting data centre projects, with details on the size of the guarantee still to be finalised.

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.