Data Centre Investment in Thailand Gains Momentum
The data centre boom in Malaysia remains robust, but it struggles to keep pace with surging demand. According to Macquarie Research, Thailand is now poised to capitalize on this opportunity. The kingdom is leveraging the rise of artificial intelligence (AI) and increasing demand for digital infrastructure.
Thailand’s edge lies in its ample power resources and supportive regulations. The “site to power” model, which prioritizes building data centres near reliable power sources, gives Thailand a clear advantage. Charles Yonts, Macquarie’s head of Asian sustainability research, highlights Thailand as a standout market. Recent investments by Amazon and Google in the Eastern Economic Corridor signal a strong trajectory for Thailand’s digital transformation.
The Thai Board of Investment (BOI) has approved two major projects in Chonburi, southeast of Bangkok. Quartz Computing, an affiliate of Alphabet Inc., will invest 32 billion baht ($950 million) in a hyperscale data centre. BOI expects its completion by 2026. Chinese tech giant GDS’s subsidiary Digitalland Services plans a 28 billion baht ($831 million) data centre. It will incorporate renewable energy like floating solar power.
More big data centre investment in Thailand
Google’s investment in Thailand underscores its ambition to establish the country as a Southeast Asian digital hub. The company announced a $1 billion investment in data centres and cloud infrastructure in Bangkok and Chonburi, expected to create 14,000 jobs and contribute $4 billion to Thailand’s GDP. Amazon Web Services (AWS) plans a $5 billion investment by 2037, with a new cloud region launching in 2025. Microsoft is planning to establish a data centre region in Thailand.
Singapore also stands to benefit indirectly from this Southeast Asian data centre boom. The city-state, already a hub for data and digital services. However, it faces constraints like limited land and high costs that make large-scale data centre expansion challenging. Nevertheless, this trend boosts Singapore’s role as a strategic headquarters for hyperscalers operating across the region.
Real Estate Investment Trusts (REITs) in Singapore, such as Mapletree Industrial Trust and Keppel DC REIT, are positioned to gain. These REITs have significant exposure to data centre assets. Thus, they could see increased demand for their properties as regional players seek interconnected data infrastructure that complements their operations in neighbouring countries. The growth in Southeast Asia’s data centre market solidifies Singapore’s standing as a central node in the regional digital economy.
While Malaysia’s Johor and Indonesia’s Jakarta remain focal points for hyperscalers, Thailand’s robust power infrastructure and government incentives position it as a rising digital hub. The competition highlights a dynamic shift in Southeast Asia’s data centre landscape, with Thailand ready to lead the charge in AI and cloud advancements.
