BOI: New Screening Requirements for Data Center Investment Promotion

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BOI: New Screening Requirements for Data Center Investment Promotion

The Board of Investment (BOI) has introduced a mandatory screening requirement for Data Center projects seeking investment promotion, extending its application to certain pending applications and expansions of existing projects. Under BOI Notification No. Sor. 3/2569, projects must obtain prior approval from a BOI-designated subcommittee before submitting an investment-promotion application. The notification, published on the Energy Regulatory Commission (ERC) website, reflects increasing regulatory scrutiny of Data Center investments, particularly their demands on electricity infrastructure, water resources and the environment.

Mandatory Screening Before BOI Applications:

Notification No. Sor. 3/2569 replaces Notification No. Sor. 2/2569, which previously required confirmation from the ERC before an investment-promotion application could be submitted. Under the revised requirements, Data Center projects classified under Category 8.2.1.1 (high-energy-efficiency Data Centers) and Category 8.2.1.2 (other Data Centers) must instead obtain approval from a subcommittee designated by the BOI to screen Data Center projects. This approval is a prerequisite to submitting an application for investment promotion, introducing an additional regulatory stage that developers must address before proceeding with the BOI application process.

Pending Applications and the 30% IT Load Threshold:

Importantly, the notification is not limited to new applications. Clause 3 expressly extends its application to projects submitted under the previous investment-promotion policy that remain under consideration, as well as applications to amend existing projects where the proposed changes increase IT load by more than 30%. Accordingly, developers cannot assume that earlier applications are automatically exempt from the revised screening requirements. The 30% threshold is particularly significant for phased developments and capacity expansions, as an existing BOI-promoted project may require further screening when its approved IT load is substantially increased.

Implications for Data Center Developers:

The revised requirements introduce an additional consideration for investment planning and regulatory due diligence. Developers should assess the screening requirement before filing new applications, review the status of pending applications and evaluate whether planned capacity expansions exceed the prescribed IT load threshold. Electricity infrastructure, water availability and environmental considerations should also be addressed early in project planning, given their express recognition in the notification. These requirements are already operative and must be distinguished from the broader national Data Center regulatory proposals concerning building classification, electricity-consumption categories and Direct Power Purchase Agreements (Direct PPAs), which remain separate policy matters and are not implemented by this notification.

Key Takeaways:

  • Prior approval: Data Center projects under BOI Categories 8.2.1.1 and 8.2.1.2 require subcommittee approval before applying for investment promotion.
  • Pending applications: Projects submitted under the previous policy and still under consideration are subject to the revised requirements.
  • Expansion threshold: Project amendments increasing IT load by more than 30% are also covered.
  • Infrastructure scrutiny: Electricity, water resources and environmental considerations are central to the revised screening policy.
  • Separate regulatory framework: The BOI notification establishes an existing investment-promotion requirement, independently of the proposed national Data Center regulations.

Author: Panisa Suwanmatajarn, Managing Partner.

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