Recently, B.Grimm Power Public Company Limited (SET: BGRIM) collaborated with its partner, forming a data center joint venture named “Digital Edge B.Grimm (TH) Holding Pte. Ltd” with BGRIM holding 40% of the venture’s share, while Digital Edge (Singapore) Holdings Pte Ltd. (Digital Edge), Singapore’s leading data center platform provider, holds the remaining 60%.
The objective of this joint venture is to build a 100 MW Hyperscale data center worth THB 24.5 billion at the Eastern Economic Corridor (EEC), with a purpose of turning it into a central hub for AI and cloud service providers that are looking to expand their business in the Southeast Asia region.
The venture is divided into two phases, with the first 48 MW set to begin commercial operation date (COD) in 4Q26, while the remaining 48 MW will commercialize at the end of 2028.
This project should generate a full year revenue by 2029, amounting to THB 3.4 – 4 billion annually or an EBITDA of THB 2.5 billion. If calculated based on shareholding proportion, BGRIM should recognize a profit sharing from this project of about THB 250 – 500 million.
In the next five years, the center could be advanced into a 300 MW data center with joint investment of THB 100 billion in total, representing an additional investment of around THB 75 billion.
BGRIM viewed that Thailand’s digital infrastructure is growing rapidly with high data consumption, cloud service use, and AI/ machine learning processing.
According to the industry’s latest report, Thailand’s data center will grow at an average of more than 25% per year until 2030. The AI’s demand is the main factor pushing the demand for scalable and energy-efficient data centers. The Thai government is supporting this growth by offering investment incentives worth over USD 2.7 billion to push Thailand into becoming the region’s central hub.
The advance toward data center business is considered as a long term positive factor that supports BGRIM even though it was speculated to generate loss in the short term period until the venture’s first phase began.
The data center business with a precise and well-calculated strategic plan, is considered a new business that will help generate revenue in the future. It also gained strong support for its capability from its partner like the Digital Edge. The company, headquartered in Singapore, is operating and constructing a total of 24 data centers across 9 countries with a total capacity of 1.1GW.
This data center joint venture requires time for construction. Its revenue recognition is also expected to begin in 2027. Still, between 4 – 9 June 2025, BGRIM’s price per share increased almost 10% from THB 9.75 to 10.7. This reflects a positive factor of entering the data center business.
