Thailand Emerges as a Favorite Pick for Data Centre Investors

Key Points

Thailand is rapidly positioning itself as a prime destination for data center investments, driven by its strategic location, robust digital infrastructure, and supportive government policies.

• Thailand has emerged as a new strategic location for global data centre providers investing in infrastructure and service networks.
• The demand for data centres in Thailand has been steadily increasing, driven by intensified digital transformation, growing data volumes, and government incentives to promote investment.
• Many major tech companies have announced investments and are actively undertaking projects to develop digital infrastructure in Thailand, aiming to enhance technological capabilities and support the growth of the country’s digital economy.
• Reasons for global corporations choosing Thailand for data centre investment include its strategic location, government support, rapidly growing digital market and economy, potential to become the digital hub for CLMVT region, and robust infrastructure.

As Southeast Asia experiences a surge in digital transformation, Thailand’s efforts to enhance its connectivity and technological capabilities have attracted global investors seeking to capitalize on the region’s growing demand for data storage and processing.

The country’s central location within ASEAN makes it an ideal hub for regional data traffic, offering low-latency connections to neighboring nations. Additionally, Thailand’s commitment to renewable energy aligns with the increasing demand for sustainable data center operations, further enhancing its appeal to environmentally conscious investors.

In July, the Board of Investment (BOI) announced the approval of 37 data center and cloud service projects, totaling an investment of 98.5 billion baht. The majority of these projects are situated in Bangkok, Samut Prakan, Chonburi, and Rayong.

The major tech companies investing in Thailand’s data centres are:

Quartz Computing (Google/Alphabet Inc.), USA
Investment: 32.76 billion baht
Year: 2024
Location: Chonburi
This will be Google’s 5th data centre in Asia and is expected to launch in 2027.
 
Digitalland Services (GDS), China
Investment: 28 billion baht
Year: 2024
Location: Chonburi
Expected to open in 2026.
 
Equinix, USA
Investment: 16.5 billion baht
Year: 2024
Long-term investment (10 years) will make Thailand the digital hub for CLMVT (Cambodia, Laos, Myanmar, Vietnam, Thailand).
 
Amazon Web Services (AWS), USA
Investment: 200 billion baht by 2037 (25 billion baht already invested)
Plans for further investment in data centres in Thailand are ongoing.
 
NextDC, Australia
Investment: 13.7 billion baht
 
STT GDC, Singapore
Investment: 4.5 billion baht
 
Evolution Data Centre, Singapore
Investment: 4 billion baht
 
Supernap (Switch), USA
Investment: 3 billion baht
 
Telehouse, Japan
Investment: 2.7 billion baht
 
One Asia, Hong Kong
Investment: 2 billion baht
 
Microsoft, USA
Investment: Estimated at 100 billion baht (under BOI consideration).
 
Alibaba Cloud, China
Investment: 4 billion baht
 
Huawei Technologies, China
Investment: 3 billion baht

In recent years, these companies have announced investments and are actively undertaking projects to develop digital infrastructure in Thailand. Their efforts aim to enhance technological capabilities and support the growth of the country’s digital economy.

Additionally, domestic companies such as True Internet Data Centre, Internet Thailand, and GSA (a joint venture between Gulf, Singtel, and AIS) have also made significant investments in this sector.

Government initiatives, such as Thailand 4.0 and the Eastern Economic Corridor (EEC), have played a pivotal role in fostering a favorable investment climate. These programs aim to modernize the nation’s economy, emphasizing innovation and technology, which are critical for the data center industry. Tax incentives, improved infrastructure, and streamlined regulations have also contributed to Thailand’s rise as a competitive player in this sector.

As the global data center market continues to grow, Thailand’s proactive approach and strategic advantages position it as a key contender in the race to meet Southeast Asia’s digital needs. Investors are increasingly recognizing the potential of this emerging market, making Thailand a hotspot for future data center developments.