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Thailand approves $2.7 billion of investments in data centres and cloud services

Thailand approves $2.7 billion of investments in data centres and cloud services

  • 17.03.2025 07:28
  • theprint.in
  • Keywords: AI, Investment

Thailand has approved $2.7 billion in investments for data centers and cloud services, including projects by Beijing Haoyang Cloud&Data Technology, Empyrion Digital, and GSA Data Center 02. This reflects Southeast Asia's growing tech infrastructure, with major investments from global companies like Google, Amazon, and Microsoft.

Alphabet Services

Estimated market influence

Beijing Haoyang Cloud&Data Technology

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Analyst rating: N/A

Planned to build a 300 MW data center in Thailand worth 72.7 billion baht.

Empyrion Digital

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Analyst rating: N/A

Invested in data centers in Thailand.

GSA Data Center 02

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Analyst rating: N/A

Thai company investing in a 35 MW data center worth 13.5 billion baht.

Bytedance (TikTok)

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Analyst rating: N/A

Announced plans to set up data hosting services valued at 126.8 billion baht in Thailand.

Alphabet Inc (Google)

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Analyst rating: N/A

Invested $1 billion in Thailand, following Amazon Web Services' $5 billion investment over 15 years and Microsoft's announcement to open its first regional data center there.

Context

Business Insights and Market Implications

Key Facts and Data Points

  • Total Investment: 90.9 billion baht ($2.7 billion) approved for data centers and cloud services in Thailand.
  • Major Investors:
    • Beijing Haoyang Cloud&Data Technology: Investing 72.7 billion baht (approximately $2.16 billion) in a 300 MW data center.
    • Empyrion Digital (Singapore-based): Investment details not specified.
    • GSA Data Center 02 (Thai company): Proposing a 13.5 billion baht ($407 million) investment for a 35 MW data center.
  • AI Boom: Driving infrastructure development in Southeast Asia, including Thailand.
  • Other Announced Investments:
    • Bytedance’s TikTok: Plans to set up data hosting services valued at 126.8 billion baht ($3.84 billion) in Thailand.
    • Alphabet Inc (Google): Committed $1 billion investment in Thailand.
    • Amazon Web Services (AWS): Announced a $5 billion investment over 15 years.
    • Microsoft: Plans to open its first regional data center in Thailand.

Market Trends and Business Impact

  • Rapid Growth of Tech Sector: Thailand’s tech sector is expanding rapidly, attracting significant foreign investments.
  • Global Competition: Major global tech companies (Google, AWS, Microsoft) are entering the Thai market, intensifying competition for cloud services and data centers in Southeast Asia.
  • AI and Digital Infrastructure Demand: The AI boom is fueling demand for robust data center infrastructure across the region.

Competitive Dynamics

  • Thailand as a Hub: Thailand is emerging as a key hub for tech investments in Southeast Asia, benefiting from its strategic location and regulatory environment.
  • Strategic Investments: Companies like Beijing Haoyang and GSA Data Center 02 are positioning themselves to capitalize on Thailand’s growing digital economy.

Strategic Considerations

  • Long-Term Effects:
    • Increased data center capacity will support Thailand’s digital transformation and AI-driven growth.
    • Investments in cloud services and data centers are expected to boost local tech infrastructure, create jobs, and attract more foreign investment.
  • Regulatory Environment: While not detailed in the text, Thailand’s regulatory framework is likely facilitating these investments through favorable policies for tech companies.

Industry Implications

  • Infrastructure Development: The investments will lead to significant expansion of data center capacity in Thailand, addressing growing demand for cloud services and digital storage.
  • Economic Growth: These projects are expected to contribute to Thailand’s economic growth by creating jobs and fostering innovation in the tech sector.