Thailand BOI Issues New Guidelines for Data Center Promotions
The Thailand Board of Investment ("BOI") has revised its criteria for investment in data center businesses twice in 2025. For details of the previous update, please refer to our earlier newsletter.
On 6 February 2026, the BOI issued a new notification providing important guidance for applicants seeking promotion under BOI Promotion Category 8.2.1 (Data Centers) (the “Notification”). This Notification set out the criteria for preparing project plans that demonstrate benefits to Thailand, a key requirement for obtaining data center investment incentives.
Background
The BOI originally required applicants for data center promotion to propose project plans demonstrating benefits to Thailand across five key areas: (i) training plans, (ii) joint curriculum development with educational institutions, (iii) research and development plans, (iv) skill development plans for Thai SMEs, and (v) domestic supply chain support. These project plans must be completed before the applicant can utilize any corporate income tax exemptions granted under the promotion.
The new Notification provides detailed guidance on the preparation of these project plans. The key requirements for each category are summarized below.
Training Plan
The training plan should aim to develop personnel skills in the design, construction, and operation of data centers in line with international standards, and to support the growth of the AI and cloud infrastructure industry in Thailand. The plan must focus on target groups seeking to upgrade the skills of skilled and semi-skilled workers (at higher vocational and vocational certificate levels) and students (at bachelor’s or master’s degree levels) in engineering and ICT fields, as well as engineers, technicians, and personnel in the energy and building systems sectors.
Joint Curriculum Development Plan with Educational Institutions
This plan focuses on developing a long-term workforce for data center and AI infrastructure through the joint development of curricula with Thai educational institutions, such as universities and vocational or technical institutes.
Research and Development Plan
R&D activities must be conducted in collaboration with Thai nationals or institutions. Eligible R&D activities may include:
• Research and development of artificial intelligence (AI) technology products;
• Research and development of computer resource allocation systems to enable efficient resource utilization and high-speed processing (resource allocation);
• Research and development relating to the application of high-performance computing (HPC) equipment; or
• Research and development of systems or equipment used within data centers, such as DC-to-DC converters, liquid cooling systems, battery energy storage systems (BESS), and lithium-ion battery uninterruptible power supply (UPS) systems.Skill Development Plan for Thai SMEs
This plan aims to enhance the capabilities of Thai SME to enable them to participate competitively in the data center supply chain. Target SMEs include those engaged in electrical and energy systems, construction (building systems and M&E works), and IT services (network infrastructure, cabling, and maintenance).
Support of Domestic Supply Chain
The supply chain support plan must define the scope of its implementation, such as knowledge transfer relating to design, construction, and various related systems (for example, cooling systems, security systems, and power and water management systems), the installation of machinery and equipment manufactured domestically, or the engagement of domestic legal entities with specific expertise to install such machinery and equipment, as appropriate.
BOI Evaluation Criteria
The BOI will evaluate project plans based on their contribution to Thailand's development. For training plans and joint curriculum development plans, the number of participants must be at least ten (10) times the total number of project personnel. These plans must continue throughout the corporate income tax incentive period.
Where the number of participants under the training plans or joint curriculum development plans is less than ten (10) times the total number of personnel employed by the project, a research and development plan and/or a skill development plan for Thai SME entrepreneurs must also be proposed and implemented on a continuous basis throughout the period during which corporate income tax incentives are granted.
The supply chain support plan must be appropriate, comply with relevant standards, and demonstrably contribute to the establishment of a supply chain within the digital industry and the data center sector.
This guideline takes effect immediately. Applicants seeking BOI promotion should take these criteria into account when preparing their applications.
Conclusion
The new BOI guidelines clarify the obligations of data center applicants by requiring clear, measurable, and ongoing commitments to workforce development, R&D collaboration, SME support, and domestic supply chain integration as conditions for accessing corporate income tax exemptions. Applicants must now design and implement substantive training and curriculum programs, potentially at a scale of at least ten times their project workforce, or alternatively undertake continuous R&D and SME development initiatives throughout the incentive period. BOI promotion is therefore no longer driven solely by capital investment, but by demonstrable long-term contributions to Thailand’s digital ecosystem, making early strategic planning and compliance critical to securing and maintaining incentives.
