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.
The report, according to Ken Research, 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%.
Ken Research’s estimates indicate that the Thailand Data Center and Cloud Services Market witnessed growth from around US$440 million and US$445 million in 2017 to approximately US$ 550 million and US$ 1,390 million respectively in 2022. The market is expected to expand further and reach approximately US$840 million and US$3,600 million for data center and cloud services respectively by 2027.
Local governments, travel and tourism, the BFSI sector, and hospitals are expected to drive colocation demand, while content providers and cloud operators, e-commerce companies, and others will drive hyperscale demand for high-density racks requirement. With around 90.0% of Thai organisations having developed at least one software-driven product or service that led to new business opportunities, expenditure on software as a service for application development and deployment is projected to increase in the near future.
The Thai government’s “Cloud First” initiative seeks to move 80% of public data to hybrid cloud systems, allowing the public sector to quickly develop services without investing heavily in ICT infrastructures such as data centers or servers.
It was reported in October 2021 that Alibaba Cloud plans to launch a data center in the South East Asian country and in May 2022, Alibaba Cloud opened its first data center in Thailand to boost the local businesses in digital innovation.
In a recent report by Statista, public cloud market revenue in the ASEAN region is expected to show an annual growth rate (CAGR 2023-2027) of 18.97%, resulting in a market volume of US$19.72 billion by 2027.
