Thailand’s data centre sector poised for explosive growth with global tech titans and cloud nine prospects

Photo courtesy of Bangkok Post.

In a surge of digital enthusiasm, Thailand’s data centre industry is set to experience substantial expansion within the next two years, thanks to the arrival of worldwide tech giants and cloud service providers. This prediction comes from ST Telemedia Global Data Centres (Thailand) (STT GDC Thailand), a dominant player in hyper-scale data operations.

STT GDC Thailand, a fruitful joint venture between Frasers Property Thailand and the Singapore-based ST Telemedia Global Data Centres, acknowledged the significance of data centres in fuelling the nation’s economic trajectory. These centres act as vital digital infrastructure, expounded Supparat Sivapetchranat Singhara na Ayutthaya, who helms the executive operations of the company.

As a demonstration of STT GDC Thailand’s commitment to this economic acceleration and strategic positioning of Thailand as a digital hub, the firm is preparing to inaugurate its third data centre, labelled STT Bangkok 3, situated in the country’s extensive mixed-use complex, One Bangkok district, before the year concludes, according to a company announcement circulated yesterday.

By projecting a future investment amounting to 200 billion baht with a data capacity of more than triple the current capacity over the upcoming half-decade, Ayutthaya emphasises Thailand’s potential as a strategic regional data centre hub. The data industry promises prolonged investment life from 15 to 30 years, solidifying its significance as a robust economic pillar.

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Propelled by international standards met by Thailand’s data centre facilities and its geopolitical benevolence, global tech companies and Chinese businesses are drawn to the potential of data centres within the nation. Supparat anticipates this thriving industry to sustain its momentum for the next half-decade to nearly a full decade. Concurrently, 20 to 30% growth is projected for STT GDC Thailand, along with intensifying competition between operators.

Amid this competitive backdrop, the company’s offerings are geared towards established industry players, which minimises economic impact. The company plans to gradually upscale its data centre capacity to a total of 40MW, supported by a substantial investment of 16 billion baht. Currently, in its initial phase, 60% of its 20MW capacity is utilised.

Spearheading STT GDC Thailand’s future strategies is a focus on clients leveraging artificial intelligence systems. With the significant outlay on electricity forming a major part of data centre expenditure (accounting for 40%), Supparat suggests that future government policies should mirror Malaysia’s commitments to reduce electricity expenses. This strategic easing would invite increased investment from tech companies and data centres alike, reported Bangkok Post.

An innovative partnership was launched last November when STT GDC Thailand signed a memorandum of understanding with PTT Digital Solutions Co, a branch of the PTT Group, to explore the feasibility of converting the cold energy produced from liquefied natural gas (LNG) regasification into electricity and chilled water for managing data centre temperatures. This trailblazing approach redefines energy efficiency within these centres and paves the way for a substantial reduction in carbon emissions.

Mirroring advancements in countries like Singapore and South Korea, this revolutionary attempt to integrate alternative energy sources could later become an industry standard, demonstrating the commitment of these centres to environmental sustainability.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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