Thailand's Regulatory Uncertainty on Data Centers Could Damp Private Investments
Dow Jones
7 hours ago
0728 GMT - Thailand's near-term private investments could be weighed by regulatory uncertainty for data centers, Maybank Securities (Thailand) analyst Chak Reungsinpinya says in a report. The government has disclosed plans to overhaul approval processes for data center investments and paused the development of 166 new data centers. Data center applications received by the Board of Investment in 2Q have slowed significantly from the 1Q peak. Project applications, approvals and issuance in other sectors, including automotive and electronics, have been much more stable. However, they remain significantly smaller than data centers in terms of investment scale. "As such, while [data center] regulations remain unfinalized, we do not expect a material recovery in aggregate BOI figures," Maybank says.
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