Google seeks 'calibrated' data center regulations in Thailand

Google is urging Thailand to adopt "calibrated" regulations for data centers, emphasizing the need to balance scrutiny with maintaining the country's competitiveness for global artificial intelligence (AI) infrastructure investment. Rigid rules or prolonged regulatory uncertainty risk pushing capital flows towards rival markets, according to a senior infrastructure executive for Google in Asia-Pacific.

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Thailand must strike a balance between tightening scrutiny of data centres and maintaining the country's competitiveness for global artificial intelligence (AI) infrastructure investment, as rigid rules or prolonged regulatory uncertainty could push capital flows towards rival markets.

"Time is of the essence -- global capital will naturally prioritize countries where they can build the fastest," said Mr. Yeu, highlighting that companies will fail to attract low-quality investments that cause pollution if regulations are too loose. Conversely, overly strict criteria could deter investment. He stressed that predictability and transparency are crucial for data center investments, which are highly mobile and footloose.

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Time is of the essence -- global capital will naturally prioritize countries where they can build the fastest, and if policies remain too long or unstable -- then they will fail to attract quality investment, and they will attract low-quality investments that cause pollution.

Google announced a $1 billion investment in Thailand's data center infrastructure in 2024. The company estimates this investment could generate $4 billion for Thailand's GDP by 2029 and support an average of 40,000 direct and indirect jobs annually. During the operational phase, each Google data center is expected to involve an average of 4,000 local workers, contributing to the local community and creating new revenue streams.

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Predictability and transparency are particularly important because a data center investment is highly mobile and footloose.

Mr. Yeu compared a data center to a rice mill that turns raw community into a higher-value product, providing computing capacity for various types of organizations, AI applications, and business use cases. He noted that data centers don't create jobs themselves but bring hundreds of people into the facility daily to keep it running. Google hires advanced technical professionals, including network development engineers, mechanical/electrical engineers, logistics managers, water operations specialists, biometric security officers, and environmental health/safety specialists.

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If developed properly, everyone pays their fair share, adds new clean energy on the grid, consumes more water, and avoids building in populated areas, the industry could deliver broader benefits.