Thailand’s Energy Regulatory Commission (ERC) is seeking public comments on a draft amendment that would establish a specific licensing framework for the distribution of electricity to data centers. The public consultation runs from September 19 to October 18, 2026.
The proposed amendment is the fourth edition of the ERC Regulation on Applications for and Granting of Energy Business Licenses B.E. 2551 (2008) and would introduce new application requirements and review criteria for distribution licenses for supplying electricity to data centers. The draft amendment follows the National Energy Policy Council’s approval of a framework for electricity grid access security deposits for large-scale data center users, as well as criteria for a pilot scheme enabling direct renewable energy purchases through direct power purchase agreements (DPPAs) under third-party access arrangements.
Background
As electricity consumption by data centers is expected to grow significantly in Thailand, regulators have raised concerns about potential impacts on power system reliability, electricity tariffs, and other energy users. Under the Energy Industry Act B.E. 2550 (2007), data center operators are classified as electricity users rather than energy business operators and are therefore not required to obtain an energy business license from the ERC. However, the distribution of electricity to data centers is a type of energy business that requires a license under section 47 of the Energy Industry Act.
In response to these concerns, the ERC’s proposed amendments to the existing licensing regulations would expressly define “data center” and establish a specific licensing framework for electricity distribution to data centers, including additional application requirements and criteria for the ERC’s consideration of license applications.
New Definition of “Data Center”
The draft amendment introduces a formal definition of “data center” as an electricity user that has a building, premises, or structure utilizing electronic equipment for the collection, storage, processing, hosting, or transmission of data by electronic means, whether for its own business, affiliated juristic persons, or third parties.
Application Requirements for a License to Supply Electricity to Data Centers
Under the draft amendment, applicants seeking a license to distribute electricity to data centers would need to submit the following information and supporting documentation:
- Details of the data center’s electricity consumption throughout the project lifetime, including at least:
- an overall electricity consumption plan, broken down by electricity procurement arrangement;
- plans for electricity backup arrangements, including energy storage systems and backup power generation systems;
- the data center’s electricity load profile showing peak and minimum power demand;
- the start date for electricity distribution to the data center and the data center’s operational start date; and
- the target year for achieving RE100 (the use of only renewable energy) or other related targets, if any.
- Investment and procurement plans for electricity supply and distribution, including grid connection details.
- PPAs or preliminary PPA contracts to purchase and sell electricity with the data center.
Applicants distributing electricity to data centers indirectly rather than directly must submit additional materials:
- Impact assessment report on the security and reliability of the electricity system, including prevention and mitigation measures.
- Business continuity plan (BCP), including a disaster recovery plan.
- Cybersecurity plan and related measures.
Aside from all of the above, the ERC may also require other documents.
Broader ERC Assessment Criteria
When assessing a license application for electricity distribution to data centers, the ERC will consider the required documentation as well as other criteria, for instance:
- Alignment with national energy policy and national data center policy;
- Adequacy of electricity generation capacity, the electricity grid, and capability of dealing with peak load; and
- Potential impact on other electricity users and the public interest.
Transitional Provisions and Penalties
The draft amendment includes a transitional clause requiring existing operators that are already distributing electricity to data centers before the amended regulation comes into force to submit a license application within 180 days. Once an application has been submitted, the operator may continue its operations unless it receives a formal denial order from the ERC.
The draft amendment does not itself introduce new enforcement mechanisms or penalties. However, once the regulation becomes effective, operating an energy business without the required license would constitute a violation of section 47 of the Energy Industry Act and would be subject to the prescribed penalties.
Potential Impact
The draft amendment would affect several groups:
- Prospective applicants for an electricity distribution license for data centers would be subject to additional application requirements, including information on electricity consumption, load profile, electricity procurement, backup power and energy storage, and RE100 or other relevant targets. The ERC would also assess grid capacity and reliability, impacts on other electricity users and the public interest, and cybersecurity, as applicable.
- Existing electricity business operators supplying electricity to data centers would face a 180-day deadline from the regulation’s effective date to apply for a license. Failure to obtain a license may be a violation of the Energy Industry Act and may be subject to penalties, including fines and imprisonment, as well as administrative enforcement measures and administrative fines, as applicable.
- Data center operators would not themselves be required to obtain the proposed license but could be indirectly affected, as their electricity suppliers may need information on electricity consumption, load profiles, backup power and energy storage, commencement dates, and RE100 or other relevant targets for license applications.
Outlook
Entities currently distributing or planning to distribute electricity to data centers should review their existing and planned electricity supply arrangements to assess whether they fall within the scope of the proposed licensing framework. Existing electricity distributors should also begin evaluating the information and documentation required for license applications, particularly in light of the 180-day transitional period. Stakeholders may wish to consider submitting comments during the public consultation period, which remains open until October 18, 2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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