In the suburbs of Bangkok, a brand new data center is silently operating, supporting thousands of digital lives from Chumphon to Chiang Mai. Recently, a Chinese engineer working locally shared his experience of participating in the construction of a green data center in Thailand on social media: "Three years ago, this was still an empty land, but now it has become the computing power heart supporting Southeast Asia's digital economy." This short story reflects a major trend: Thailand, this smiling country, is rapidly rising as a hot spot for Southeast Asian data center construction.

Driven by the global digital wave, data centers, as key infrastructure for the digital economy, have shown strong development momentum in Thailand. With the widespread application of emerging technologies such as artificial intelligence and cloud computing, Thailand's demand for data centers continues to rise. The support of the government, the growth of the market, and the advantageous geographical location are jointly driving the rapid development of this industry. Among them, Chinese companies are becoming increasingly active and deeply involved in the construction of data centers in Thailand. An official from the Ministry of Digital Economy and Society of Thailand stated, "Data centers are the digital cornerstone of Thailand's 4.0 strategy, and we welcome and support investments that meet sustainable development standards.

Giants gather, market size grows rapidly

The data center market in Thailand has shown a rapid development trend in recent years. At present, there are 32 operational data centers in the country, most of which are located in the capital Bangkok. With more and more giant enterprises and content giants announcing plans to build cloud businesses in Thailand, the capacity of Thai data centers is rapidly growing.

According to relevant reports, the operational capacity of Bangkok data centers will reach 105 megawatts in the second half of 2024, an increase of about 84% from 57 megawatts in the first half of that year, nearly doubling. The total capacity under construction and planned is as high as 232 megawatts.

International technology giants are expanding their presence in the Thai data center market. In February 2025, Alibaba Cloud will open its second data center in Thailand, focusing on the development of cloud computing, artificial intelligence, and green energy-saving technologies. In September 2024, Google announced an investment plan worth up to 360 billion Thai baht (approximately 10 billion US dollars) to establish and expand cloud computing infrastructure and data centers in Bangkok and Chumphon. In May of the same year, Microsoft announced its investment in building its first regional data center in Thailand, expected to be worth approximately 36 billion Thai baht (about 1 billion US dollars). 

Amazon is also preparing to lay out infrastructure areas in Thailand, with plans to invest 180 billion baht (approximately 5 billion US dollars) over the next 15 years. The first phase has already invested over 25 billion baht (approximately 700 million US dollars) to build three data centers. The growth of the Thai market has exceeded our initial expectations, and the digital ecosystem here is maturing at an astonishing speed. We must increase investment to seize the opportunity, "commented the project leader of an international cloud service provider in Thailand.

The combination of multiple advantages presents opportunities for Chinese enterprises

The Thai government is actively promoting the Thailand 4.0 plan, accelerating the digital transformation of the country and industries, which has brought huge demand for cloud services and data infrastructure. The Investment Promotion Commission of Thailand has provided a series of preferential policies for data center projects, including allowing foreign investors to own permanently owned land and offering tax incentives.

The market demand is equally strong. Thailand has 48 million Internet users. With the wide application of digital technology in the business field, especially the rise of artificial intelligence technology, the demand of enterprises for data processing and storage has expanded rapidly. According to the Kai Tai Research Center, the data center service market is expected to account for 43.3% of the Thai data center market by 2025.

Geographically, Thailand is located in the center of Southeast Asia and is an important hub connecting the Asian continent and Southeast Asian islands. It can radiate to neighboring countries and provide convenient conditions for data transmission and exchange within the region. The increasingly improved telecommunications infrastructure also provides favorable network conditions for the operation of data centers. These advantages have brought valuable opportunities for Chinese enterprises. The rapid growth of the Thai data center service market has provided a broad stage for Chinese enterprises with rich experience and advanced technology. A senior executive of a Chinese data center company investing in Thailand analyzed, "Policy dividends, geographical location, and market demand have formed a 'golden triangle', which is the ideal testing ground for Chinese companies to internationalize their domestic experience.

Advancing through challenges, green and integration become the future direction

Despite the broad prospects, the construction of data centers in Thailand still faces multiple challenges. In terms of regulatory environment, land zoning and related regulations are still being continuously improved, and the process of land acquisition and approval may be more complex. In terms of cost factors, compared to neighboring countries, Thailand has higher electricity and fiber optic network costs. Water resource pressure and talent shortage are also limiting factors.

Faced with challenges, the data center industry in Thailand is developing towards a green and integrated direction. Green data centers have become mainstream, and in the future, more renewable energy sources such as solar and wind power will be used to reduce carbon emissions. At the same time, innovation will continue in cooling technology, energy management systems, and other areas.

The integration of data centers with industries such as artificial intelligence, big data, and cloud computing will deepen, providing strong support for the development of these industries. The development of the data center industry will also drive the improvement of related industrial chains and promote the diversification of the Thai economy.

Chinese companies are participating in this process in a unique way. The cooperation between Galaxy Data Center, an independent brand of Heying Data's overseas business, and Silicon Tech Park in Thailand is quite distinctive. Both parties plan to jointly develop a gigawatt level green artificial intelligence data center park and photovoltaic power station in Rayong, Thailand, to build a localized operation and maintenance system that runs through digital energy and carbon. This cooperation has received comprehensive support from the government of Luo Yong and is expected to become a powerful engine for the development of the local digital economy. A Chinese technical leader of the GDC project shared, "We are not just building a data center, but also introducing a complete set of green computing standards and operation and maintenance systems. Talent cultivation is the key, which can ensure the long-term success of the project.

In an environment where challenges and opportunities coexist, Chinese companies are steadily expanding into the Thai data center market through close cooperation with local parties in Thailand, leveraging their technological, financial, and resource advantages. With the continuous progress of Thailand's digital economy and the deepening of cooperation between China and Thailand in the digital field, Chinese enterprises are expected to achieve more fruitful results in this emerging market and contribute more to the development of regional digital economy. The CEO outlook of a local technology company in Thailand: "International cooperation brings technology and capital, but the ultimate goal is to build a sustainable digital ecosystem that belongs to the region and can self generate.Editor/Yang Beihua