Commentary

Unveiling Thailand’s modern goldmine: data centres

Data has become the reigning force in all aspects, resulting in a heightened demand for physical spaces to support its exponential growth.

July 29, 2024

In today's digital era, data is king, and the need for reliable and robust data centres has become paramount. As businesses increasingly rely on technology to store, process, and analyse massive amounts of data, the demand for data centres has skyrocketed. Thailand's data centre landscape has not been immune to this trend. In recent years, the country has witnessed a significant shift in this industry.

Traditionally, data centres were seen as a necessary but inconspicuous part of the commercial real estate landscape. However, the rise of cloud computing, big data analytics, and the Internet of Things (IoT) has transformed data centres into a modern goldmine. These facilities are now viewed as strategic assets that enable businesses to stay competitive in an ever-evolving digital economy.

One key driver of the data centre market in Thailand is the exponential growth of hyperscale and colocation facilities. Hyperscale data centres are massive facilities that house thousands of servers and storage systems. These facilities are primarily built and operated by large tech companies that require immense computing power to support their global operations.

Greater Bangkok has emerged as a hotspot for colocation data centres. Colocation facilities allow multiple companies, regardless of their size, to co-locate their servers and network equipment in a shared space. This arrangement provides a cost-efficient, scalable, and sophisticated infrastructure for businesses seeking reliable and secure data storage solutions. It is particularly poised to support the expected growth in all aspects within this sector.

Continuing to grow in parallel with other countries in the region, Thailand offers unique advantages that make it an attractive destination for both local and international data centre providers. The country boasts a resilient and reliable power infrastructure, with favourable energy prices and a robust national power grid. Additionally, Thailand's strategic location in Southeast Asia positions it as a gateway to regional markets, making it an ideal location for businesses seeking to expand their data operations in the region.

Moreover, the Thai government has recognised the importance of data centres in driving economic growth and has taken proactive measures to develop the industry. Incentives, such as tax breaks, 100% foreign ownership and other favourable policies, have been put in place to attract data centre investments. This proactive approach by the government has resulted in an influx of both local and international data centre operators, further strengthening Thailand's position as a regional data centre hub.

In conclusion, the data centre landscape in Thailand has evolved rapidly, with growth in both hyperscale and colocation facilities. The country's strategic location, robust power infrastructure, and supportive government policies have made it an ideal destination for data centre investments. As businesses continue to rely on data-driven technologies, data centres are poised to become the modern goldmine, providing not only secure and reliable storage solutions but also opportunities for alternative investments.