Key points
- Thailand paused construction on 49 datacentre projects and delayed approvals for 117 others in September 2026.
- Indonesia's West Java governor halted a datacentre build due to missing permits and incomplete environmental reviews.
- Cushman and Wakefield reports Southeast Asia holds half of the Asia Pacific region's under-construction datacentre capacity.
Thailand suspended work on 49 datacentre developments and deferred decisions on 117 additional projects in September 2026, according to the published reportreported
What was released or claimed
The Guardian AI reported that Thailand’s board of investment had previously approved projects from TikTok, Skyline Datacentre and Bridge Datacentres, totaling $27bn in planned investment.reported
Who it affects
The pause impacts infrastructure developers and technology firms seeking to expand compute capacity in Southeast Asia, particularly those with projects in Thailand and Indonesia.
What is still unknown
It remains unclear whether the paused projects will resume, as officials cite a lack of sufficient details for regulation and monitoring.
The practical upshot
Power and water constraints are pressuring the region's rapid growth, forcing a reconsideration of datacentre projects that were previously viewed as a new industrial juggernaut.
What the rules require
Compliance now demands complete environmental assessments and valid permits before construction begins, as seen in West Java. Regulators in Thailand are insisting on sufficient regulatory details and monitoring frameworks before approving new builds. Product teams must account for these regulatory delays when planning infrastructure expansion in Southeast Asia, where under-construction capacity remains high but approval processes are tightening.
Why it matters
- Infrastructure timelines may extend significantly due to new regulatory scrutiny in Thailand and Indonesia.
- Power and water availability remains a critical constraint for datacentre expansion in the region.
- Southeast Asia holds 50% of Asia Pacific's under-construction datacentre capacity, making regulatory shifts impactful.
- Singapore's historical moratorium highlights the long-term risks of resource-intensive datacentre operations.
Topics: datacentres, infrastructure, regulation, Southeast Asia
Updated
Then / now / next
Southeast Asia was experiencing rapid datacentre growth with major investments approved in early 2026.
Construction has paused in Thailand and halted in parts of Indonesia due to regulatory and environmental concerns.
Watch for updated regulatory frameworks in Thailand and Indonesia that may allow projects to resume.
Story timeline
- Then Southeast Asia was experiencing rapid datacentre growth with major investments approved in early 2026.
- 07 Nov 2026 The datacentre arms race hits pause in south-east Asia
- Now Construction has paused in Thailand and halted in parts of Indonesia due to regulatory and environmental concerns.
- Next Watch for updated regulatory frameworks in Thailand and Indonesia that may allow projects to resume.
The strongest doubt
Counterpoint from the sources
Malaysia continues to see significant growth in operational datacentre capacity, with Johor's capacity growing more than tenfold from 2023 to 2026.
For readers
Investors
- Review exposure to Thai and Indonesian datacentre projects given the regulatory pauses.
- Monitor Malaysia as an alternative market with continued capacity growth.
Policy
- Develop clear regulatory frameworks for datacentre monitoring and environmental impact.
- Address power and water constraints to support sustainable infrastructure growth.
Business
- Delay expansion plans in Thailand and Indonesia until regulatory clarity is achieved.
- Ensure all environmental assessments and permits are complete before initiating construction.
Ask the article
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Your choice stays on this device. No public tally.Questions readers ask
Why did Thailand pause datacentre construction?
Thailand paused construction due to concerns about insufficient details for regulation and monitoring of the projects.
Which countries are affected by these pauses?
Thailand and Indonesia are currently pausing or halting datacentre construction due to regulatory and environmental issues.
How much capacity is under construction in Southeast Asia?
Southeast Asia accounts for about 50% of the under-construction datacentre capacity in the Asia Pacific region.
Connected stories
Reading receipt
- Thailand paused construction on 49 datacentre projects and delayed approvals for 117 others in September 2026.
- Indonesia's West Java governor halted a datacentre build due to missing permits and incomplete environmental reviews.
- Cushman and Wakefield reports Southeast Asia holds half of the Asia Pacific region's under-construction datacentre capacity.
Still open: Will the 117 pending approvals in Thailand be resolved or cancelled?
Still open: How will power and water constraints impact future datacentre growth in Southeast Asia?