Thailand Emerges As A Preferred Destination for Japanese Data Center Investments

Two Japanese data center providers have invested approximately US$164 million (equivalent to 5.5 billion baht) to establish and expand data centers in Thailand, positioning the country as among the preferred destination for data center investments in Southeast Asia.

Telehouse in May announced the opening of its first Thai data center at the prime location of Rama 9 in Bangkok with an investment of THB 2.5 billion (about US$74 million) aiming to create the connectivity ecosystem and to achieve 100% power supply by renewable energy in Thailand.

Similarly, NTT announced an investment of THB 3 billion (USD 90 million) through NTT Global Data Centers Corporation for the development of its newest and largest data center in Thailand. The new Bangkok 3 Data Center (BKK3) will start operations in the second half of 2024 and will provide a maximum IT capacity of 12MW.

Thailand’s data center sector has witnessed substantial investments from prominent international players like Tencent Cloud, Huawei, NTT, Alibaba Cloud, Amazon Web Services, and Google Cloud over the past few years. Notably, Alibaba Cloud, Amazon Web Services, and Google Cloud.

In February, Singtel, GULF, and AIS have commenced the construction of a new data center in Thailand. The data center will be operated by their joint venture company GSA Data Center Company Limited (GSA) and is expected to start operating commercially in 2025. It will have a capacity of at least 20MW.

Moreover, two Thailand-based data center operators, Etix Everywhere and Supernap, launched and expanded their data center, powered by renewable energy, to conform to the requirements of environmental sustainability.

Thailand’s data center and cloud services markets are expected to grow between 2022 and 2027 thanks to a digitally-savvy population and the government’s efforts to promote a more connected society. A research report show that the data center market is projected to hit a CAGR of 8.8%, while the cloud service market is expected to reach a CAGR of 21.0%.

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