Thailand Data Center Market, Competition, Forecast & Opportunities, 2028

The Thailand data center market is growing owing to growing data consumption. This has spurred the need to store and process data efficiently along with rising government investment to provide the physical data center space. The increasing availability of skilled workforce and operational and development cost advantage across various end-use industries have led to an increased focus on data center to overcome the situation of high data consumption. Companies are highly dependent on computer systems that drive their business operations. Improvement in inland and submarine connectivity and demand for electric vehicles and green energy solutions are rising in Thailand. In addition, 5G infrastructure investments in edge data centers have further boosted the demand for data centers. The need for secure facilities with resilient infrastructure such as reliable and redundant power supply and cooling and connectivity are further increasing the demand for more data centers in the country. Many enterprises are collaborating and adopting data centers as a cost-effective solution.

• On March 28, 2023, Telehouse, world’s leading data centers providers, announced the partnership with JasTel Network Co., Ltd. aiming to be the leading interconnectivity in Thailand. With the partnership, the company aims to strengthen and increase connectivity options domestically and internationally as JasTel has a stable telecommunication network.

Moreover, the market is anticipated to be driven by the rising demand for digital age networking, are enabling businesses to progress toward digital transformation and produce new business outcomes by utilizing new digital age technologies such as the internet of things (IoT), cloud computing, and artificial intelligence (AI). Additionally, the growing demand for data and high bandwidth capacity, especially due to increasing smartphone users promotes the development of the Thailand data center market during the forecast period.

A data center is a physical location with networked computers, storage systems, and computational infrastructure that businesses utilize to store, gather, analyses, and disseminate massive quantities of data. It offers reliable storage without the glitches of portable technology, eliminating a portion of losses, reduce costs, manage data, and protect upcoming technology investments. Data centers are a crucial component of every organization, since they are created to support corporate applications and offer services such as productivity applications, high-volume e-commerce transactions, data storage, management, backup, and recovery. Edge data centers can assist reduce latency for real-time and data-intensive workloads, including big data analytics, artificial intelligence (AI), and content delivery apps, enhancing overall application performance and user experience. For enterprises that lack the space, personnel, or experience to deploy and operate all or part of their IT infrastructure on-site, managed data centers and colocation facilities are choices. Thailand’s data center industry is expanding rapidly in the age of digitization. With a predicted expansion driven by technologies such as artificial intelligence, machine learning, and analytics, the nation is ideally positioned to become a worldwide hub for data centers focusing on cloud computing.

Rapid Adoption of Cloud and Digital Transformation by Companies

People are flocking to the cloud because of its scalability and low cost. Several cloud service providers from across the world have revealed their availability zones in Thailand, particularly in locations such as Bangkok, Nonthaburi since they have strong fiber connection in addition to being close to clients. Three Availability zones (AZs) are being built by Amazon Web Services (AWS) in Bangkok to support high availability (HA), while maintaining Low Latency. Large enterprises such as Google Cloud has announced their plans to open its first cloud region in Thailand, aiming to accelerate the country's next stage of digital economic development. While most of the large enterprises already accelerated cloud adoption, medium-sized companies and small companies embarked on their cloud journey. Moreover, several investments by the enterprises in cloud and digital journey are aiding in developing the cloud infrastructure in Thailand. For instance, recently Huawei and Symphony Communication have signed a memorandum of understanding to accelerate cloud adoption and digital transformation supporting the Thailand government’s “Thailand 4.0’s” digital initiatives. Moreover, the development of 5G infrastructure, AI, robots, and the explosion in data-intensive industries such as edge computing and the Internet of Things (IoT) have all enjoyed full support of the Thai government. All these industries produce massive volumes of data, the majority of which must go through some sort of data centers. Furthermore, as cloud-managed services are a vital part of digital transformation, their demand will expand in the recent years. The government's efforts to transform Thailand into a global data hub have resulted in several regulations and reforms that have given the essential framework for this expansion, and more new firms are entering the market in the coming years. Therefore, the rapid adoption of cloud and digital transformation by companies are attributing the growth of the Thailand data center market.

Growth in Renewable Energy and Infrastructure

The promotion of renewable energy by the Thai government aims to lessen the country's reliance on fossil fuels and increase its contribution to mitigating the effects of global warming. Many data center service providers have invested in clean, renewable energy sources to run their existing and future facilities as a result of the rising data center power usage and the desire to reduce carbon footprint. The development of renewable energy in Thailand comprises biomass, biogas, small and large hydropower facilities, solar, wind, and other sources. Around 9% of Thailand's electricity was produced from renewable energy as of March 2022, as a result of the instability in crude oil prices. By 2037, the Thai government needs renewable energy to supply 30% of all energy used in the country. The objective was set to attain carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065. Also, the ability of service providers to boost electricity production and electrification has been made possible by the expansion in the establishment of facilities and installations of renewable energy infrastructure. The Thailand data center industry is still in the developing stage, as its growth in the industry is more adaptable and can adopt green technologies. Besides this, the country may strengthen its position as a champion for green data centers. Hence, renewable energy and infrastructure growth offer robust opportunities in the Thailand data center market.

Growing Acquisition and Investment Among Enterprises

The Thailand data center market is expanding as a result of an increase in mergers and acquisitions and investments by local and foreign businesses. With the favorable market condition and hyperscale demand, several enterprises have seen strong potential in data centers through the rise in cloud-based services. In August 2022, Bridge Data Centres, a majority-owned subsidiary of Chindata, successfully acquired a facility from local logistics real estate company WHA Corporation PCL in Samut Prakan, Thailand contributing growth of retail and wholesale colocation services in the Thai digital space. Also, several foreign companies have expressed interest in working with the country's advancements, including the production of electric vehicles, the installation of solar photovoltaic (PV) systems, and the development of renewable energy and data centers. Additionally, Thailand 2022 Investment Pledge for 39% worth up to USD 20 billion has attracted significant foreign direct investment (FDI), particularly in key sectors, including electronics, the supply chain for electric vehicles (EV), and data centers, making it the world's easiest place to conduct business and ranking third among ASEAN nations. Furthermore, the BOI (Board of Investment) promotion plan (2023-2027), are offering a variety of tax advantages and other benefits to businesses who are interested to invest in data center in Thailand. The BOI promotion program offers business facilitation services, exemptions from or reductions in import tariffs, and tax vacations lasting up to eight years. While more capital will increase the size and scale of projects as new investors come in, more data center enterprises are seeking to improve and upgrade their technology and cloud strategies. Thus, the increase in acquisitions and investments among the enterprises is fueling the growth of the Thailand data center market.

Market Segmentation

The Thailand data center market is divided into solution, type, and end-user industry. Based on solution, the market is divided into IT infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure and others. Based on type, the market is segmented into corporate and web hosting. Based on end user industry, the market is divided into information technology & telecom, government, BFSI, healthcare, and others.

Market Players

KDDI (Thailand) Ltd., True Internet Data Center Co., Ltd (Thailand), CS LoxInfo Data Center, Tcc Technology Co Ltd (Thailand), NTT (Thailand) Ltd., G-Able Public Company Limited, AIS-CSL, Bridge Data Centers (Thailand) Ltd., JasTel Network Co., Ltd., and ST Telemedia Thailand Pte. Ltd. are among the major players that are driving the growth of the Thailand data center market.

Report Scope:

In this report, the Thailand Data Center Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Thailand Data Center Market, By Solution:

• IT Infrastructure
• General Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• Others

Thailand Data Center Market, By Type:

• Corporate
• Web Hosting

Thailand Data Center Market, By End User:

• Information Technology & Telecom
• Government
• BFSI
• Healthcare
• Others

Thailand Data Center Market, By Region:

• Central Thailand
• Eastern Thailand
• Southern Thailand
• Northern Thailand

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Thailand Data Center market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company’s specific needs.


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