Thai Data Centers Foreign Ownership and Data Sovereignty Risks

MGR Online•Economy•5d ago

Reader Briefing

Foreign investment in Thai data centers via BOI incentives raises concerns over data sovereignty and regulatory loopholes.

•Bangkok has 34 data center projects, with 24 already operational.
•BOI-promoted projects between 2024–2026 show a 64% proportion of foreign-linked investment.
•Foreign entities can hold shares and land ownership if they receive BOI promotion.
•The Bangkok Metropolitan Administration is reviewing definitions and zoning to prevent large data centers in dense communities.

•Bangkok has 34 data center projects, with 24 operational and 6 large standalone projects that applied for permits between 2021–2022.
•Of the 42 BOI-promoted projects nationwide between 2024–2026, 27 are linked to foreign investors from China, USA, UAE, Japan, Malaysia, and Hong Kong.
•Daria Data Center and Cloud Services Co., Ltd. operates a project in Soi Rama 9 Soi 6 with a parent company in the United Kingdom.
•STT GDC (Thailand) Co., Ltd. operates a project in Soi Ramkhamhaeng 28 with a parent company in Singapore.
•Foreign entities can own land for promoted businesses under Section 27 of the Investment Promotion Act.
•Data sovereignty is at risk if parent companies abroad control decryption keys, system administration, or backup copies.
•Some data center projects apply for permits as warehouses or offices, bypassing environmental and urban planning assessments.
•The Bangkok Metropolitan Administration is delaying additional permits to review definitions, zoning, and environmental criteria.

Full article content is available on the original source.

Chadchart Sittipunt(ชัชชาติ สิทธิพันธุ์)ℹ️

Governor of Bangkok who provided data on the number of data centers in Bangkok.

BOI(บีโอไอ)

The agency providing investment promotions that allow foreign shareholding and land ownership for data centers.

Bangkok Metropolitan Administration(กทม.)ℹ️

The local authority reviewing data center definitions and zoning to prevent placement in dense communities.

Daria Data Center and Cloud Services Co., Ltd.(ดาเรีย ดาต้า เซ็นเตอร์ แอนด์ คลาวด์ เซอร์วิสเซส จำกัด)

A company registered on December 19, 2023, operating a data center in Soi Rama 9 Soi 6 with a UK-based parent company.

STT GDC (Thailand) Co., Ltd.(เอสทีที จีดีซี (ประเทศไทย) จำกัด)

A company operating a data center in Soi Ramkhamhaeng 28 with a Singapore-based parent company.

Stellar DC

A data center project whose specific location was not detailed in the provided dataset.

Foreign Business Act(พระราชบัญญัติการประกอบธุรกิจของคนต่างด้าว)

The law that regulates foreign business operations and requires licenses for foreign-majority ownership.

Investment Promotion Act(พระราชบัญญัติส่งเสริมการลงทุน)

The law whose Section 27 allows BOI-promoted entities to own land necessary for their business.

Bangkok(กรุงเทพฯ)ℹ️

The city where 34 data center projects are located, concentrated in areas like Huai Khwang, Bang Rak, and Sathon.

Huai Khwang(ห้วยขวาง)ℹ️

The district in Bangkok with the highest number of data centers at 9 projects.