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Aidan Jones

At a market in Bangkok, stallholders say they had no idea initially about a boxy structure covered in gunmetal grey panels that was quickly built and installed opposite their stalls.
According to them, nauseating oil began to waft through the area, where a hospital is also located, several months ago along Rama XI, an arterial road in the heart of the Thai capital, prompting complaints that led to the revelation that a new data centre might have been set up.
More worryingly for the stallholders, the facility was later found to have stored 200,000 litres of oil without a permit.
The revelation last week spurred Thai authorities to carry out inspections and close a legal loophole – the energy- and water-guzzling facility could not be registered as a data centre and instead could only be classified as a warehouse or a factory.
For the people who have worked in the area for years, the discovery has fuelled concerns that the country is welcoming big investments such as data centres too fast without proper consultation and explanation.
“I don’t know much about what this data centre is for. But it’s frightening that even the oil could leak into our drainage,” said Yui, a stallholder in her 60s, giving only a nickname.
“I heard that it could generate a lot of heat too. Where will all the heat go? I can’t even get permission to modify my house, but these guys can just build this massive data centre right in the middle of our community? They didn’t even need a permit.”

Across Southeast Asia, billions of dollars of investments in data centres are pouring in as tech giants build infrastructure at breakneck speed ahead of demand.
The BKKO1 data centre inspected by the authorities was linked to a US$1 billion investment by Dubai conglomerate DAMAC in Thailand in collaboration with a local partner.
When DAMAC announced the investment in 2024, the company said it chose Thailand to be a Southeast Asia gateway and to have access to chips, printed circuit boards and other infrastructure needed to power the data centre and “hyperscale” it once operations were scheduled to begin this year.
Bangkok authorities appear to have been caught flat-footed about the facility’s existence.
Anti-pollution officials found oil residue had leaked into a nearby canal from a spill. Authorities have not given the facility’s operator permission to store large quantities of oil for the data centre.
If convicted, the operator could face a 200,000 baht (US$6,000) fine for illegally storing the fuel.
Dozens of other data centres that have been built, are under construction and are being planned in Bangkok have triggered fears over public safety and pollution, as the facilities are located around populated urban areas.
The issue has revealed tensions and disconnect between Thailand’s pursuit of billions of dollars in tech investments and regulators who have been slow to catch up.
Last Friday, Prime Minister Anutin Charnvirakul called on data centre operators to pause their construction until his government could make “airtight” laws to reclassify the facilities and protect public safety.
“Thailand is attracting interest from both local and foreign investors … we need to ensure alignment with laws, standards and the national interest,” he told reporters.

Bangkok Governor Chadchart Sittipunt said the issue arose because of regulatory gaps.
“The term ‘data centre’ has never been defined in the law. When permit applications are made, they are filed in the form of warehouses,’’ he told reporters.
“As a result, under urban planning regulations, they are not subject to EIA requirements and do not require industrial factory permits. Therefore, there must be a review of the law to bring it more in line with the urban context,” he added, referring to environmental impact assessment.
Critics say the data centre rush is another example of vast inflows of foreign capital from businesses using Thailand and its resources as a base, while providing few jobs and long-term benefits for ordinary Thais.
Cautious of upsetting their wealthy neighbours running the BKK01 data centre, stallholders at the nearby market did not want to identify themselves to This Week in Asia but expressed concerns about the massive investments flowing into the city without proper checks.
“Before the authorities came to clean the drain, the smell of oil was so strong it gave me headaches,” a long-time stallholder said.
“It’s better now. But the people who did this only have to pay a 200,000 baht fine for this. That is one baht for every litre.”


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The discovery of a data centre in Bangkok that was illegally storing 200,000 litres of oil prompted authorities to close a legal loophole


The discovery of a data centre in Bangkok that was illegally storing 200,000 litres of oil prompted authorities to close a legal loophole.


Environment

Anutin Charnvirakul

Bangkok

United Arab Emirates (UAE)

Data centres sprouting in Thailand fuel fears of public health impact

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The discovery of a data centre in Bangkok that was illegally storing 200,000 litres of oil prompted authorities to close a legal loophole

The discovery of a data centre in Bangkok that was illegally storing 200,000 litres of oil prompted authorities to close a legal loophole