Korn Highlights Seven Critical Challenges in Thailand’s Data Center Development

Bangkok: Korn Chatikavanich, Deputy Leader of the Democrat Party and a Member of Parliament, has expressed significant concerns over the government's approach to data center development in Thailand. He warned that the government's current policies and management strategies are outdated, posing potential risks to the nation and its citizens in both immediate and future contexts.

According to Thai News Agency, Korn highlighted seven pressing issues that the Democrat Party has long recognized and previously submitted as an urgent motion to parliament. These issues include inadequate governance, potential pollution risks associated with data centers, and insufficient authority granted to the established committee, which currently only provides proposals for cabinet consideration. Korn also emphasized the lack of clear guidelines from agencies like the Board of Investment (BOI) on whether existing guidelines apply to previously approved projects that have not yet commenced construction.

Korn raised concerns about a potential conflict between data center promotion and the government's electricity policy. While the government has an emergency decree for borrowing 400 billion baht to reduce oil and gas import burdens, there is a suggestion to promote data centers using surplus electricity, which predominantly relies on gas. This could lead to increased LNG imports. Additionally, Korn pointed out the significant water consumption by data centers and the associated pollution issues, including noise and wastewater management responsibilities.

The Democrat Party also expressed concerns over the government's encouragement of foreign investment in data centers, which could hinder the development of AI and data center quality within Thailand. This situation raises questions about the benefits and access rights for Thai businesses and startups. Moreover, recent remarks from the US government about Thailand possibly facilitating China's access to high-end chips could impact Thailand's import rights for CPUs, affecting AI business development and the broader technology economy.

Korn expressed hope that the upcoming meeting chaired by Mr. Ekniti would address these issues, promoting data center investment with minimal negative impact while benefiting Thai businesses and the national economy.

Meanwhile, Pasin Pitutecha, a Democrat Party MP from Rayong, addressed the excessive water usage by data centers, noting that over 70% are expected to be located in the Eastern Economic Corridor (EEC), an area already facing water supply challenges. He called for zoning restrictions, as construction has already begun without such measures. Pasin emphasized the need for careful government planning to ensure benefits for local residents and the nation, urging preemptive action rather than reactive measures post-implementation.