As Thailand courts data centres, a new reservoir raises questions over water and wildlife

The proposed Khlong Wang Tanot reservoir, nestled in Chanthaburi province – approximately a four-hour drive southeast of Bangkok – is designed to hold an impressive 99.5 million cubic metres of water. This colossal undertaking is a cornerstone of Thailand’s broader strategy to fortify water supplies for its rapidly expanding Eastern Economic Corridor (EEC), a flagship initiative aimed at transforming the eastern seaboard into a high-tech industrial hub. However, this project, first envisioned in the 1990s amidst burgeoning industrialization, has evolved into a contentious flashpoint, emblematic of the complex and often painful trade-offs inherent in Thailand’s pursuit of economic growth.

In August, Thailand’s Cabinet formally approved the Khlong Wang Tanot project, signaling a commitment to a seven-year construction timeline. Yet, this greenlight is conditional. The reservoir’s footprint extends deep into the protected Khao Sip Ha Chan National Park, requiring explicit permission for the use of protected forest land. This crucial approval rests with the National Park Committee, an oversight body responsible for safeguarding Thailand’s natural heritage. The government has indicated that newer environmental assessments and updated data can still be factored into the decision-making process before final approval, leaving a narrow window for reconsideration and intensifying the debate.

The discord surrounding Khlong Wang Tanot is widespread, permeating government agencies, conservation organizations, and the very farming communities poised for displacement. Each stakeholder group presents a distinct perspective on whether the anticipated economic and agricultural benefits of the reservoir genuinely outweigh its undeniable environmental and social costs. This project has thus become a litmus test for Thailand, revealing the delicate balancing act it must perform between its robust economic aspirations and its increasingly pressing commitments to protect its diminishing forests, invaluable wildlife, and the indigenous communities intricately woven into the fabric of its natural landscapes.

Amidst tin-roofed houses, vibrant flowering shrubs, and swaying coconut trees, lives remain suspended in uncertainty. Seeda Saengkla, the revered head of Ban Klong Yang village, resides directly within the proposed inundation zone. Her community, comprising 334 households and 654 residents, faces an agonizing choice. While many villagers reluctantly acknowledge the project’s inevitability, their primary concern revolves around the profound fear of losing their homes and livelihoods without receiving adequate compensation or robust support for relocation. “Naturally, leaving would be heartbreaking. But many villagers are willing to make that sacrifice,” Seeda articulated, her voice laced with a mix of resignation and hope. “What they want is for the government and relevant agencies to help them survive after relocating. They don’t want to move somewhere else only to end up in debt. They don’t want to feel abandoned.” The spectre of forced displacement, a recurring theme in large infrastructure projects globally, looms large, threatening to sever social ties and dismantle generations of accumulated knowledge and community resilience.

A Growing Thirst: Agriculture, Climate, and Industry

Water scarcity is not a novel challenge for eastern Thailand. The Royal Irrigation Department (RID), a key government agency, initiated comprehensive studies of the Wang Tanot watershed in the 1990s, prompted by severe dry-season shortages that hampered agricultural productivity. In the intervening decades, these demands have only escalated dramatically. The landscape itself has undergone a significant transformation; vast tracts of land once dedicated to rubber cultivation, known for its relatively modest water needs, have been increasingly converted to lucrative durian orchards. This shift to durian, Thailand’s "King of Fruits" and a highly profitable export, brings with it a far greater and more intensive thirst for water, placing immense strain on existing resources.

Compounding this agricultural pressure is Thailand’s growing vulnerability to climate change, manifesting in increasingly unpredictable rainfall patterns. The region now experiences more intense, short-duration downpours followed by prolonged periods of drought, creating formidable challenges for effective water resource planning and management. This erratic climate further underscores the perceived urgency of projects like Khlong Wang Tanot.

Pornpimol Thongbo, a durian farmer in Kaeng Hang Maeo district, vividly illustrates this struggle. Her family’s water requirements have surged as their durian trees mature and become more productive. During the arid dry season, they heavily rely on a combination of self-dug ponds and groundwater wells, often resorting to purchasing supplementary water from external sources when rainfall proves insufficient. Inadequate water supply can spell catastrophic losses, wiping out an entire harvest and plunging families into financial distress. Yet, Pornpimol remains skeptical, questioning the necessity of yet another large-scale reservoir when many local farmers still struggle to access water from the three existing reservoirs already constructed within the watershed. Khlong Wang Tanot would be the fourth and largest, designed to complete a system intended to enhance agricultural water security and mitigate downstream flooding. “Right now, we still haven’t seen anything that would convince local residents that building the reservoir will actually benefit them,” Pornpimol asserts, reflecting a widespread sentiment of distrust among those directly affected.

Thammanoon Innooch, director of the Large-Scale Irrigation Construction Office in the province, affiliated with the RID, projects that the new reservoir will primarily serve local farmers and households most in need of water. This assurance has indeed garnered support from other farmers in the area, who are eager to see the project proceed. Thammanoon acknowledged the sensitivity surrounding the use of protected forest land, stating that the project had been meticulously designed “to use only as much land within the national park as necessary.” Crucially, he also confirmed that up to 70 million cubic metres of surplus rainy-season runoff could eventually be transferred annually from the Wang Tanot watershed towards the neighbouring Rayong province to support the wider EEC. He stressed, however, that local water requirements would be prioritized, and the actual transfer volume would be contingent on rainfall and other prevailing conditions.

The industrial water requirements within the EEC have surged exponentially since the reservoir’s initial conception. Further expansion is anticipated as Thailand actively courts a new generation of high-tech industries, including advanced electronics, biotechnology, and electric vehicles. The sheer weight of this burgeoning industrial demand has led many locals to question the fundamental fairness of the project, especially given what they perceive as a historical pattern of being overlooked for water access during dry periods in favour of industrial users. “If it’s for the benefit of the country, that’s fine,” Pornpimol conceded. “But can local people benefit first? That’s what matters to me.” This sentiment highlights a deep-seated concern about equitable resource distribution and the potential for local communities to bear the brunt of national development.

A "Golden Time" for Industry and the Data Centre Boom

Driving through Thailand’s sprawling EEC area, which encompasses the provinces of Chachoengsao, Chonburi, and Rayong, reveals a landscape profoundly transformed. Where traditional fishing villages, expansive rice fields, and fruit orchards once dominated, a dense network of multilane expressways now slices through vast industrial estates, connecting deep-sea ports, state-of-the-art power stations, and advanced manufacturing plants. In recent years, this industrial metamorphosis has been further accelerated by the global data-centre boom, which has firmly taken root in the EEC.

According to industry tracking data, three major data facilities are already operational or undergoing significant expansion within the EEC, while an additional nine are currently under construction. Government figures further underscore this trend, revealing that 29 data-centre projects have applied for investment incentives in the EEC, representing more than half of all such applications nationwide. Kwankamol Chittrakul, a civil engineer and expert in water resources management, explains that Thailand views this surge as an unparalleled opportunity to revitalize economic growth, attract substantial foreign investment, and create higher-skilled jobs. This influx is partly driven by projects spilling over from more constrained and environmentally regulated markets like Singapore and Malaysia. For developers, she notes, “It’s a golden time. If you don’t do it now, it will be more difficult in the future,” referring to an impending tightening of environmental regulations in Thailand itself.

The Thai government is indeed in the process of developing new regulations for data centres that will impose stricter oversight on their water and electricity consumption, environmental impacts, and siting. Nevertheless, the proliferation of hyperscale data centres introduces yet another major water consumer to a system already precariously balancing the demands of agriculture, domestic use, and traditional industries. Data centres, the backbone of the digital economy, require immense computing power, which generates substantial heat. This heat must be efficiently removed through sophisticated cooling systems, many of which are water-intensive, relying on evaporative cooling technologies that consume vast volumes of water.

Projections from Thailand’s Office of National Water Resources indicate that industrial water demands in the EEC are expected to surge by an astounding 58 per cent between 2024 and 2037. The World Bank, in a stark warning, estimates that the total annual water demand across the EEC’s three provinces could reach 3.6 billion cubic metres by 2037. More alarmingly, it cautions that the region could face a water-supply shortfall of almost 40 per cent under average climatic conditions, a figure that could skyrocket to 72 per cent in severe dry years, even with planned water infrastructure investments. These figures highlight a looming crisis that infrastructure projects like Khlong Wang Tanot are intended to mitigate, but also potentially exacerbate by enabling more water-intensive industries.

As the reliability of future water supply becomes a critical question, water availability is paradoxically being actively promoted as a competitive advantage to potential investors. East Water, a prominent regional water supplier, commenced supplying water to Bridge Data Centres in Chonburi in May, explicitly marketing its ability to provide uninterrupted supplies as a key draw for Thailand’s burgeoning digital economy. Similarly, WHA Utilities and Power, another major player, reported this year that data centres can demand 12 to 16 times as much water as conventional business customers. WHA is aggressively expanding its water infrastructure and pursuing new contracts worth tens of millions of cubic metres annually to cater to these voracious requirements. Industrial-estate developers are also investing heavily in expanding their own reservoirs, pipelines, and water-treatment facilities to accommodate new customers. Even the agency overseeing the EEC has acknowledged the escalating challenge, with its next development plan placing significantly greater emphasis on securing both water and electricity for the region’s expanding high-tech industries.

The Khlong Wang Tanot reservoir is one of several large-scale water infrastructure projects strategically intended to bolster supplies across eastern Thailand, where industrial demand is projected to continue its relentless ascent. However, Somnuck Jongmeewasin, research director at the civil society organization EEC Watch, challenges this supply-side focus. He questions why Thailand continues to prioritize finding new water sources rather than implementing more effective management strategies for existing resources. He argues that greater industrial water recycling, the adoption of more efficient agricultural irrigation techniques, and improved distribution networks could substantially ease pressure on current resources. Crucially, he advocates for ensuring local communities receive their fair share of water before it is diverted to industrial users. Somnuck warns that the expansion of privately supplied industrial water could leave vulnerable communities at a severe disadvantage as competition for this essential resource intensifies. “All data centres have money. They can buy electricity. They can buy water. But local people cannot buy,” he states emphatically. “So, this water war is not fair."

Alternatives to the large-scale Khlong Wang Tanot project have indeed been proposed. The Department of National Parks, Wildlife and Plant Conservation (DNP) has championed a much smaller version of Wang Tanot that would inundate only about 112 hectares of the national park, combined with a suite of other measures. These include constructing smaller, localized reservoirs, enhancing storage capacity at existing dams, and implementing more efficient overall water management practices. Thammanoon of the RID, however, maintains that while such measures could be beneficial, they would ultimately prove insufficient to meet the projected long-term water demand. In response, the EEC Office is now actively collaborating with the World Bank on initiatives focused on expanding wastewater reuse, alongside broader measures to improve water efficiency and manage demand across the region. They have specifically identified treated industrial wastewater reuse as a vital strategy to reduce extraction from natural water sources and enhance the resilience of the EEC’s water supplies.

Elephants in the Room: The Cost to Wildlife

Back in Wang Tanot, the relentless push for more water resources imperils another increasingly scarce and precious resource: space for Thailand’s wild elephants. Beyond the quiet confines of Ban Klong Yang village, the landscape unfurls into scattered, tree-lined hillocks and expansive stretches of unbroken, mature forest. It is here, in the cool, shaded undergrowth, marked by well-trodden dirt paths, that families of elephants move silently. The national park and its surrounding areas form a critical wildlife corridor, utilized by a population of over 100 elephants as they search for food and water, migrating between different areas depending on seasonal availability. This region is an integral part of Thailand’s Eastern Forest Complex, a vital network connecting larger, protected forest ecosystems. However, during drier periods, these majestic animals are compelled to travel farther afield, increasingly venturing into agricultural areas in search of sustenance, explains Supakarn Kaewchot, a senior veterinarian for the DNP.

“If the reservoir affects existing feeding routes, elephants will have to find new ways to reach food sources,” Supakarn cautions. There is significant concern that flooding established feeding grounds and traditional movement corridors could force elephants into closer, and potentially more dangerous, contact with human populations, warns Rattanawat Chaiyarat, an associate professor at the Faculty of Environment and Resource Studies at Mahidol University. “The question is,” he ponders, “where will they go when the surrounding areas of the Eastern Forest Complex are entirely dedicated to agriculture and industry?”

Human-elephant conflict in the eastern region is already “quite severe,” Rattanawat notes, citing frequent crop damage and occasional human casualties. It remains deeply uncertain how well local communities, already grappling with encroachment, could handle an increase in such interactions in the future. Elephants, known for their remarkable intelligence and complex social structures, rely heavily on generational memory to navigate their seasonal feeding grounds and migration paths. Altering these deeply ingrained routes disrupts herd cohesion and leadership, explains Padet Siridumrong, a veterinarian specializing in large animals and wildlife. “When herd structures collapse, elephants scatter into small groups and enter agricultural areas, triggering recurring conflicts. This will lead to continuous spending on mitigation projects without resolving the root cause,” says Padet, who directs the Nern Plub Wan Animal Hospital in Chonburi.

The RID acknowledges that habitat loss could indeed increase the risk of elephants moving into agricultural areas and communities. However, Thammanoon reiterates that the reservoir is a necessary evil to meet long-term water demand, emphasizing that the RID has incorporated measures to monitor wildlife movements and maintain habitat connectivity. These mitigation efforts, however, are often seen by conservationists as insufficient to truly compensate for the wholesale destruction of vital habitats.

Silchai Sae Jia, a 73-year-old rubber farmer, is already exasperated by the persistent presence of these large mammals. Elephants regularly traverse his plantation, uprooting trees and terrifying his workers. Some labourers have ceased working on his land due to the perceived danger. While his property would remain above the reservoir’s waterline, Silchai fears that the loss of the surrounding elephant habitat will make his property uninhabitable, as the displaced animals will have nowhere else to go but through his fields. “Some people might say I’m lucky. They might say I’ll have a beautiful view of the reservoir, a million-baht view. But that’s not how I see it. I think I won’t be able to live here anymore,” he laments.

Silchai understands Thailand’s fervent desire for economic growth and modernization. Yet, he questions who will ultimately bear the true cost of this ambition. His words resonate with a deep sense of injustice and sacrifice. “Your development should not come at the expense of people like me,” he asserts, his voice firm. “You should not use our shoulders as a stepping stone towards your own prosperity.” The Khlong Wang Tanot reservoir project thus stands as a microcosm of Thailand’s broader development dilemma, forcing a critical reckoning with the environmental, social, and ethical costs of progress in a rapidly changing world. The tension, decades in the making, has indeed come to a head, demanding a solution that transcends mere engineering and addresses the fundamental questions of equity, sustainability, and respect for both human and natural heritage.