There is a speculation that the world’s top technology companies will expand the data center’s investment in Thailand, increasing its size by 13.9 times by 2028. This could lead to investments of THB 320 billion, and generate revenue to Thai businesses, during the development of the center, by about THB 130 billion.
Krungthai Compass suggests that the government sector should increase internet networks’ efficiency and allow the data center service provider to use the private sector’s renewable energy to attract an investment continually.
The institute cited the digital economy that has a continuing growing trend, possibly becoming the main mechanism in pushing the Thai economy for the next six years due to technology development and government’s support policies.
Google Temasek and Bain & Company speculated that the value of Thailand’s digital economy will grow 13.8% per year from THB 1.6 trillion in 2024 to THB 3.5 trillion in 2030.
The economic activity, such as e-commerce, online media, tourism and shipping, would also follow the expansion of digital technology, possibly increasing the data traffic by 1.75 times during 2023 -2030. This increasing size will support the demand of data centers to store and process more data.
Thailand currently has fewer data centers when compared to other nations in the ASEAN region. Back in 2023, the size of Thailand’s center was smaller than Singapore’s, Malaysia’s, and Indonesia’s, by 13.7 times, 3.2 times, and 2.5 times, respectively. These differences make a great opportunity for the nation to attract the world renown center service provider to invest more.
As for the direction of data center’s investment, it is pushing the expansion of the data center to become 13.9 times bigger during 2023 to 2028, generating the basic investment of about THB 320 billion.
The investment mostly comes from the world’s top technology firms, such as Microsoft, Google and TikTok, and the region’s first class data center service provider, such as CtrlS NEXTDC and Beijing Haoyang Cloud Data Technology. Their support could generate revenue to Thai companies, during the development of the center, by about THB 130 billion.
The sector that receives the highest advantage is the contractor.
The revenue generated from data center service would increase from THB 57 billion in 2023 to THB 150 billion in 2028, an approximately 21.3% increase per year. This is due to the demand of public cloud services to support the training of AI modules and the development of online platforms as their trends follow the demand for AI technology and the investment for online platforms.
Furthermore, the cloud system installation services and public service to data centers may see their revenue rise from THB 21 billion in 2023 to THB 82 billion in 2028, an approximately 31.7% increase per year.
The sectors that have the highest growth opportunity are telecommunications and the power plant as their growing rates could reach about 71.6% and 62.2% per year, respectively.
The mentioned figures revealed that the data center is Thailand’s economic growth opportunity.
