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.

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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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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.