Thailand's suspension of 49 data center projects last week highlights growing tensions across Asia over the expansion of AI infrastructure. As countries previously aggressively attracted data center investments, issues such as electricity and water usage, security, and community capacity are becoming more pressing, prompting developers to reassess their construction plans.
Thailand has suspended 49 projects.
On September 4, Thai regulators suspended construction of 49 data center projects and began developing new rules for resource usage and safety. Previously, several Asian countries had actively attracted data center investments through tax incentives, land discounts, and support for electricity and water resources.
In recent years, tech companies such as Microsoft and Amazon have committed billions of dollars to building new data centers and AI infrastructure in Asia. However, as demand surges, project progress is increasingly constrained by real-world limitations.
The design is beginning to align more closely with the community.
Kevin Guan, Chief Investment Officer at Bridge Data Centers, stated that there are physical limits to the speed of large-scale data center construction, with project deliveries already experiencing significant delays and challenges. Gensler, an architectural design firm, also noted that opposition to data center expansion is emerging in many regions worldwide.
In land-constrained Asian cities, data centers have begun to expand upward, with some projects reaching 10 to 11 stories and located closer to residential areas. This has forced developers to make greater adjustments regarding noise, aesthetics, heat management, and surrounding infrastructure.
Some customers are still exploring the use of waste heat generated by data centers to heat swimming pools during winter, aiming to improve energy efficiency and address public concerns about high energy consumption.
Water and energy pressures remain unresolved.
Data centers typically require large amounts of freshwater to cool chips. In Johor, Malaysia, Bridge Data Centers has built a wastewater treatment facility to recycle municipal wastewater, reducing the impact on the city’s drinking water supply. The company states that any unused treated water is returned to the community.
Meanwhile, data center buildings are typically designed for a 20-year lifespan, but the useful life of the latest AI chips may be less than five years. To accommodate faster hardware turnover, Bridge is using modular materials that allow equipment inside the server rooms to be replaced like building blocks.
However, the sustainability pressures on data centers have not disappeared. According to data from the International Energy Agency, about 56% of the energy consumed by global data centers still comes from coal and natural gas, putting additional pressure on companies’ own emission reduction goals.