Global Tech Giants Double Down on Thailand Data Centre Boom

 

Major global technology firms and investment powerhouses are maintaining their confidence in Thailand's potential as a digital hub, pressing ahead with significant investments in data centres.

 

The Thailand Board of Investment (BOI) has indicated a strong pipeline, with another four to five substantial projects poised for board approval.

 

Existing investments in the sector have already surpassed 380 billion baht. The latest development sees global investment giant GIP-BlackRock teaming up with Thai conglomerate CP Group for a colossal 175 billion baht data centre venture, while both Amazon Web Services (AWS) and Microsoft have reaffirmed their ongoing investment plans for the country.

 

Narit Therdsteerasukdi, Secretary General of the BOI, informed "Thansettakij" that numerous new data centre and cloud computing projects are slated to enter Thailand this year, with a further four to five currently under consideration by the BOI board.

 

These projects largely originate from Singapore, China, Hong Kong, the United States, and Thai companies themselves.

 

 

To date, Thailand's data centre and cloud service industries have attracted investment promotion for 45 projects, totalling 380.8 billion baht.

 

The data centre segment includes major global players such as Amazon Web Service (AWS), Google, TikTok, GDS, Switch, NTT, One Asia, Telehouse, Equinix, NextDC, STT GDC, alongside significant investments from Thai giants like True Group and GSA. 

 

The cloud service sector boasts names like Huawei, Alibaba Cloud, True Group, and the recent addition of Siam AI, in partnership with NVIDIA.
 

 

The most recent entrant is Global Infrastructure Partners (GIP), the infrastructure investment arm of BlackRock, one of the world's largest asset managers. GIP has announced a data centre investment in Thailand valued at between US$3-5 billion.

 

 

Adebayo Ogunlesi, Co-founder, Chairman, and CEO of GIP, and Senior Managing Director at BlackRock, stated that GIP-BlackRock is partnering with Charoen Pokphand Group (CP) to invest a substantial US$3-5 billion in Thailand's digital infrastructure, with a particular focus on developing data centres to support advanced technologies including AI, Big Data, and Cloud Services.

 

"We firmly believe in Thailand's potential as a crucial strategic hub in Southeast Asia. The country offers a strong combination of geography, infrastructure, energy resources, and a skilled workforce, all of which are vital for long-term growth," Ogunlesi emphasised.

 

He further asserted that "GIP's investment in Thailand is not merely a business opportunity; it's a collaborative effort aimed at building a robust, stable, and sustainable digital ecosystem, laying a new foundation for the regional digital economy."

 

This significant investment is expected to generate substantial new employment in engineering and technology, while also bolstering Thailand's competitive edge in the global market.

 

This aligns with the projected growth of the Southeast Asian data centre market, estimated to reach US$3.81 billion between 2024 and 2029, with an average annual growth rate of 6.8%.
 

 

 

 

Specifically, Thailand's data centre market is forecast to expand at an average rate of 7.5%-8.5% annually over the next three years, presenting a crucial opportunity for the nation to establish itself as a key technological centre within the ASEAN economic landscape.

 

Suphachai Chearavanont, CEO of Charoen Pokphand Group (CP Group), commented, "Thailand possesses significant potential to become the digital and AI hub of the ASEAN region and is entering the era of Giga Data Centres – facilities designed to support gigawatt-level power and high-intensity workloads, meeting the demands of global technology companies investing here. CP Group is therefore committed to collaborating with international partners like GIP and the Thai government to upgrade the nation's digital infrastructure to fulfil its potential as ASEAN's digital hub, increase investment in human capital, and support research and development projects that will elevate Thailand as a centre for education and innovation, ultimately benefiting future generations of Thais."

 

Vatsun Thirapatarapong, Country Manager of Amazon Web Services (AWS) Thailand, told "Thansettakij" that global uncertainties are driving organisations to increase investment in cloud and AI technologies to enhance efficiency and reduce costs.

 

AWS remains committed to its investment in the "AWS Thailand Region," a 195 billion baht long-term project spanning 15 years to build cloud and AI infrastructure in Thailand, with no plans for review or reduction due to their confidence in the Thai market's growth potential.

 

AWS reiterated its commitment to strengthening Thailand's digital future through three key pillars: technology, business transformation, and workforce development.

 

They aim to promote the adoption of cloud, digital infrastructure, and AI, while supporting Thai organisations in leveraging technology to transform their operations, adapt to changes, and seize new opportunities.

 

Furthermore, they are prioritising workforce development, anticipating that over 39% of job skills will become obsolete by 2030, necessitating reskilling and upskilling initiatives.

 

Global volatility is also causing procurement challenges for customers, driving demand for more flexible systems, which AWS's cloud services can readily address.

 

This includes the shortage of GPUs for AI processing, which customers are finding difficult to secure. As a cloud provider, AWS is well-positioned to provide GPUs to meet growing customer demand and sees this as a significant opportunity.

 

 

Meanwhile, Dhanawat Suthumpun, Managing Director of Microsoft (Thailand) Limited, stated that Microsoft is proceeding with its investment plans in Thailand, as announced by CEO Satya Nadella.

 

This includes establishing data centres and cloud and AI infrastructure in the country, which is currently progressing. Furthermore, Microsoft has launched the "THAI Academy Driving Thailand's AI Future" project, in collaboration with government bodies and various organisations, aiming to develop approximately one million AI professionals in Thailand.

 

This initiative, with an initial investment of US$1 million, underscores Microsoft's ongoing commitment to the Thai market.