Thailand’s information heart market is gaining momentum thanks to non-public funding, authorities assist, and the nation’s place on the coronary heart of Southeast Asia’s quickly increasing digital infrastructure panorama.
In keeping with a current report from JLL, Thailand’s strategic location in Southeast Asia makes it a perfect hub for connecting ASEAN markets to the worldwide financial system.
Bangkok has turn into a focus for information heart exercise, with vital developments in close by areas akin to Chonburi, in addition to to the north and east of the capital, all providing sturdy connectivity and infrastructure.
These websites present wonderful entry to energy and connectivity whereas remaining near city infrastructure.
A current transaction facilitated by JLL secured actual property alongside Bangkok’s Bangna-Trat Street for “one of many world’s largest digital infrastructure firms.”
Krit Pimhataivoot, head of capital markets at JLL Thailand, mentioned the $500 million funding underscores the nation’s rising attraction as a knowledge heart vacation spot.
“Thailand is attractive because of its strategic geographic place, rising information consumption, and supportive authorities insurance policies,” Pimhataivoot instructed DCN.
Bangkok’s place as a regional hub makes it a perfect location for the expansion of knowledge facilities. (Picture: Alamy)
Thailand is at present residence to round 50 information facilities, primarily clustered round Bangkok, with main gamers together with TCC Know-how, True IDC, and CAT Telecom all sustaining a presence within the area.
John Dinsdale, chief analyst at Synergy Analysis Group, mentioned worldwide firms together with NTT and KDDI are additionally increasing their footprint in Thailand’s information heart market, whereas world cloud suppliers like Google, Microsoft, and Amazon are set to considerably enhance their presence.
“Thailand’s market could also be nascent, however its forecast progress fee is among the many highest within the area,” he instructed DCN.
Dinsdale mentioned a bunch of firms even have large plans for opening information facilities over the approaching years, together with Equinix, GDS, Chindata, CtrlS, NTT, and Empyrion.
Southeast Asia’s Rising Knowledge Heart Trade
The growth of Thailand’s information heart market comes as the broader Southeast Asia area is witnessing a knowledge heart increase fueled by fast digital transformation, booming e-commerce, and rising cloud adoption.
Throughout the Southeast Asian market, information heart capability has doubled in a yr, from 2,500 MW in 2022 to five,000 MW in 2023.
Jabez Tan, head of analysis at Construction Analysis, defined that Singapore performed a central function in Southeast Asia’s information heart improvement.
“That is largely resulting from its in depth subsea fiber-optic networks, steady regulatory setting, and standing as a regional monetary and logistics heart,” he mentioned.
Round 50 information heart are at present in operation throughout Thailand. (Picture: Alamy)
Nonetheless, the island nation faces progress constraints resulting from its restricted actual property and energy availability, which has pushed world operators to think about neighboring nations.
Amid this bottleneck, world operators are more and more contemplating neighboring nations like Thailand, which, whereas nonetheless behind regional leaders like Indonesia with 79 information facilities and Malaysia with 55, is catching up.
“Thailand, Malaysia, and Indonesia are benefiting from demand that Singapore can not assist,” Dinsdale mentioned.
Thailand Knowledge Facilities: Challenges and Alternatives
Regardless of a number of components being in its favor, Thailand faces challenges in competing with its neighbors. Chief amongst these hurdles is its regulatory setting.
“Indonesia’s massive inhabitants and Malaysia’s sturdy infrastructure give them an edge,” Pimhataivoot famous. “In Thailand, zoning and laws for information facilities, significantly in Bangkok, are nonetheless catching up.”
Thailand’s benefits embrace ample energy provide, enhancing telecommunications infrastructure, and authorities incentives such because the Board of Funding’s freehold land possession allowances for overseas buyers.
Pimhataivoot added that the price of energy and fiber connectivity in Thailand is larger than in neighboring nations, which may deter some buyers.
Tan famous that every nation in Southeast Asia has completely different laws regarding land acquisition, energy utilization, and environmental requirements.
“Navigating these various regulatory landscapes requires vital time and assets, typically necessitating collaboration with native specialists,” he defined. “With out cautious administration, these complexities can result in delays and elevated prices when constructing information facilities.”
He famous that infrastructure readiness additionally varies throughout the area. Whereas nations like Thailand and Malaysia have made vital progress, others might face points akin to inconsistent energy provides or restricted entry to renewable vitality sources.
“These components can impede the event of dependable and sustainable information heart operations, the place constant energy and environment friendly cooling are vital,” Tan mentioned.
Sustainability Prospects for Knowledge Facilities in Thailand
Sustainability is changing into a focus for Thailand’s information heart growth. Corporations are exploring inexperienced applied sciences and renewable vitality to satisfy world and native environmental requirements.
“The shift towards inexperienced and sustainable information heart designs aligns with world traits,” Pimhataivoot mentioned, predicting larger emphasis on environmentally acutely aware builds by 2025.
Wanting forward, edge computing and distributed information facilities are anticipated to achieve traction as rising applied sciences demand localized information processing.
Particular financial zones just like the Japanese Financial Hall (EEC) are prone to play a major function on this progress.
“The EEC and different zones will improve Thailand’s connectivity with ASEAN nations, boosting its regional competitiveness,” Pimhataivoot added.
Thailand Knowledge Heart Market in 2025 and Past
In 2025, Thailand is anticipated to draw extra worldwide gamers and additional combine into the area’s digital infrastructure community.
“Thailand’s potential to emerge as a regional information hub is simple, although it would doubtless nonetheless path bigger markets in capability,” Pimhataivoot mentioned. “The important thing lies in balancing progress, sustainability, and connectivity.”
Dinsdale mentioned that with investments rising and robust authorities assist, Thailand is poised to play a vital function in Southeast Asia’s data-driven future, because of its location.
“It’s within the coronary heart of Southeast Asia, which is a area that’s attracting a whole lot of consideration,” he mentioned. “The economies are rising, and there’s a lot of potential for sturdy progress nicely into the longer term.”
Learn extra of the most recent information heart website choice information
Corporations like AWS, Microsoft, and Google are making vital investments in Thailand, alongside an inflow of Chinese language hyperscalers like Alibaba, Tencent, Baidu, Damac, and ByteDance, that are increasing to serve the area’s Chinese language-speaking firms and customers.
Tan famous that the Thai authorities’s initiatives centered on good cities and digital transformation are making a supportive setting for information heart funding.
“When mixed with the area’s push towards renewable vitality and sustainability, Thailand has positioned itself as a robust contender for information heart progress inside Southeast Asia,” he mentioned.
