As a latecomer to the industry, Thailand is in a unique position to leapfrog its Asean neighbours by putting into action lessons from other mature data center hubs, whether Singapore, Tokyo, Europe or the US. “Thailand can adopt best practices without repeating early-stage mistakes,” notes an STT GDC spokesperson from Thailand in an email interview with w.media.
Some key lessons that the country could and should immediately act upon include implementing regulatory and compliance frameworks with clear guidelines around data privacy, cybersecurity, and cross-border data flows. Next, it should look Into talent development and retention seeing that there is a dire shortage of data center talents endemic throughout the world. The country should immediately strengthen workforce development programs, partnerships with universities, and certification pathways. Experienced hubs invest heavily in training engineers and operational staff hence this is what Thailand should focus on as well.
Mature data center hubs also prioritise energy efficiency and renewable energy integration, hence, Thailand should accelerate adoption of green power, advanced cooling technologies, and resilient infrastructure to stay competitive and meet global Environmental, Social, and Governance (ESG) expectations.
In terms of connectivity and ecosystem building, STT GDC is of the view that Thailand should rapidly build digital highways, peering exchanges, and cluster strategies to attract hyperscale and enterprise clients. This is because established data center hubs thrive on interconnections with cloud providers, carriers, and enterprises.
Finally, Thailand should start now to design modular, scalable facilities and make flexible capacity planning a requirement in order to plan for both AI-driven high-density workloads and unpredictable client demand. Mature hubs always take that into consideration.
By implementing these lessons immediately, Thailand can leapfrog the growing pains of early-stage DC markets and position itself as a trusted, future-ready hub for Southeast Asia, STT GDC concludes.
Thailand vs Johor?
On whether Thailand would follow the trajectory of Johor, seeing that there are parallels in the early stages, STT GDC views both as having distinct market dynamics.
“Thailand and Johor share similarities as emerging digital infrastructure hubs in Southeast Asia, but the two markets operate under different regulatory frameworks, industrial priorities, and ecosystem maturity. It is therefore not an “apple-to-apple” comparison — Thailand’s data-centre growth has been shaped by its own digital economy agenda and the Thailand 4.0 and EEC (Eastern Economic Corridor) initiatives,” says the company.
When STT GDC first entered the Thai market, it viewed the country as a market with long-term potential. It has thus taken a measured approach to building high-quality, scalable infrastructure aligned with market demand and the country’s evolving digital readiness.
“Our early investment was guided by the belief that Thailand would become a critical gateway connecting Indochina, mainland Asean, and the global digital ecosystem,” says STT GDC.
The firm was among the first foreign company to set up a data centre in Thailand in September 2021.
Over the past four years, Thailand has seen a steady increase in cloud adoption, AI-driven workloads, fintech innovation, and hyperscale interest, supported by improvements in power, fibre, and regulatory development.The market has matured, with growing awareness of data sovereignty, sustainability, and energy efficiency, which are shaping new facility designs and operational standards.
The biggest challenges encountered as the firm grew its business as a pioneer in Thailand was building market awareness and trust in the colocation model.
“In the beginning, enterprises were still in the early stages of digital transformation, with many preferring to host infrastructure on-premise. We played a key role in introducing the market to the benefits of carrier-neutral, scalable, and secure data centre solutions — and demonstrate how such infrastructure could accelerate business agility. Today, that trust has grown significantly. We are now the trusted partner of leading local and international hyperscalers, e-commerce platforms, gaming companies, and organisations in the BFSI sector.”
Another key challenge was talent and ecosystem development, says the company. “The demand for skilled professionals in critical infrastructure, cloud operations, and sustainability has grown rapidly, so we have worked closely with universities and partners to help build this talent pipeline for the industry.”
Strong growth ahead
STT GDC feels that Thailand’s data centre industry is set for strong growth over the next 12 months, driven by rising AI adoption, cloud migration, and digital transformation across key sectors such as finance, retail, and healthcare.The Bangkok market’s value is expected to grow at a five-year CAGR of 27.1 per cent to US$ 652 million in 2029, as enterprises increasingly shift from on-premise infrastructure to scalable, high-performance colocation solutions, according to research firm Structure Research.
“AI demand has yet to fully emerge, but Thailand is well-positioned as the market matures. With lower costs per MW—driven by more affordable land, energy, and construction compared to other APAC countries—Thailand offers a cost-efficient base for future AI deployments, and early signs of this shift are already visible, says Structure Research.