Thailand growing as a data centre colocation powerhouse

Positioned at the heart of the Southeast Asia, Thailand is as an ideal hub for data centre operations, with easy access to major markets in China and India

Colocation data centres - large data centre facilities that rent out rack space to third parties - are growing in popularity worldwide. Demand for their services has seen spikes in growth, with many attributing this trend to Covid-19.

How did a pandemic cause such a shift? With scores of businesses forced to close their offices - resulting in the loss of physical server space - companies have been turning to third party providers to provide high-spec alternative solutions to their hosting problems. And this has only continued as they struggle to open spaces up again in the years since.

The global data centre colocation market size was valued at US$50,335m in 2021, and is expected to grow to US$159,852m by 2030.

Colocation offers multiple benefits to clients, including - and not limited to - saving on time and cost. Data Center Map currently has 24 data centres listed across Thailand in four markets, all centred in and around the Bangkok area. 

Thailand - a rising colocation data centre location?

KPMG has said the rising demand for data centres in the country has increased as a result of “intensifying digitalisation, rising data traffic and investment promotion through government incentives”. The multinational professional services network predicts that  Thailand’s data centre market will grow by 27% between 2019-2026, which it says is “indicating a potential opportunity for investors to enter a steadily-growing industry.”

And with the exponential growth of other cutting-edge technology like AI, the growth in the data centre sphere can be lumped in with it from a service provider perspective.

Key movements in the data centre industry in Thailand

Back in January 2022, Etix Everywhere Holdings acquired a majority stake of 67% in  prominent data centre operator Genesis Data Center Co, followed by a joint development agreement of a data centre in Thailand between Gulf Energy Development, Advanced Info Service and Singtel the following month.

And neighbouring countries are branching into Thai territory, with Telehouse opening its first data centre in Thailand in 2023 following an investment of US$74 million, while NTT invested more than US$85m through NTT Global Data Centers Corporation to develop its newest and largest data centre in Thailand.

And this month, STT GDC announced it is to build a third data centre in Bangkok, which is planned to open by the end of 2023.

"Recognising Thailand’s pivotal role as a critical digital market and the demand for robust data infrastructure, we are confident that STT Bangkok 3 will emerge as a prominent data centre and network hub, empowering businesses with seamless connectivity and enhanced IT infrastructure in a strategically advantageous location and fostering the establishment of a resilient digital ecosystem," said Bruno Lopez, President and Group CEO of STT GDC.

"We are committed to delivering unique high-quality colocation services that meet our global standards for design, operational excellence, and customer support, all key to facilitating the long-term success of diverse organisations."


For more insights into the world of Data Centre - check out the latest edition of Data Centre Magazine and be sure to follow us on LinkedIn & Twitter.

Other magazines that may be of interest - Mobile Magazine.

Please also check out our upcoming event - Cloud and 5G LIVE on October 11 and 12 2023.


BizClik is a global provider of B2B digital media platforms that cover Executive Communities for CEOs, CFOs, CMOs, Sustainability leaders, Procurement & Supply Chain leaders, Technology & AI leaders, Cyber leaders, FinTech & InsurTech leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare and Food.

BizClik – based in London, Dubai, and New York – offers services such as content creation, advertising & sponsorship solutions, webinars & events.


Featured Articles

How data management is key to successful ESG reporting

Levent Ergin, Chief ESG Sustainability Strategist, Informatica, explains how data collection & management are essential to transparent ESG reporting

Data Centre Magazine: Celebrations as we mark 3rd birthday

As we mark Data Centre Magazine’s birthday this week, we reflect on our highlights over the last three years and take a deep dive into the past 12 months

Equinix and the future of data centre digital transformation

As Equinix celebrates its 25th anniversary, Bruce Owen, Managing Director for Equinix, UK looks ahead to the future of the world of digital infrastructure

Eastdil bank appoints Rob Walters as data centre chief

Top 10 net zero pointers from data centre expert to execs

Aruba S.p.A on growth and sustainable data centre management