The data center industry in Thailand is expected to continue to grow at a rapid rate as more businesses and organizations embrace digitalization. With the government’s continued support, bolstered by an influx of foreign investments, the data center industry in Thailand is set to become one of the most vibrant in the region.
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 shows 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%.
According to a report from the Thailand Board of Investment, the country’s data center industry has grown rapidly in the past five years, with the number of data centers and cloud computing platforms increasing by over 55%. At the same time, the total value of investments in the sector is expected to be netween US$1.3B – US$1.5B according a few market research agencies.
To ensure that the sector is able to thrive, the government has issued a number of policies to attract foreign investment and support the growth of the data center industry. This includes the Data Center Incentive Program, which provides tax exemptions and other forms of incentives to companies that locate their operations in Thailand.
Thailand’s newly elected Prime Minister Srettha Thavisin recently said that the country expects to receive investments of at least $5 billion from Tesla, Google, and Microsoft.
“Tesla would be looking into an EV manufacturing facility, Microsoft and Google are looking at data centres,” said Prime Minister Srettha Thavisin
Data center announcements this year include, Evolution Data Centres‘ JV with Central Pattana at 34MW, ST Telemedia Global Data Centres (Thailand)‘s Third Data Centre at 2MW (Total 42MW), Telehouse Data Centre at 9.5MW, NTT BKK3 Data Centre at 12MW, OneAsia Network’s Data Centre at 20MW and most recently DC Power BN1 Data Centre at 24MW that is a joint venture between STEC and Sitem Corporation Co., Ltd. (SITEM) .
Speaking to W.Media, Nataphon Maninetr, CEO of SITEM, says he has been involved in building data centres in Thailand for 25 years and he is confident that the rapid growth of digital infrastructure will make Thailand a major hub for data centres and connectivity in the region.
Kasem Nincharoen, executive director at Acumen Consulting, who has been in the Thai data center industry for nearly 25 years, says Thailand is also poised to become the world’s renewable energy hub.
