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."

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