Thailand is intensifying efforts to become a major hub for data centers, attracting both local and international tech companies amid the global surge in artificial intelligence and cloud computing. The Board of Investment approved two companies in June 2024 to develop large data centers in the kingdom, with a total investment of THB 10.4 billion (USD 280 million).
One project involves a multinational company headquartered in the U.S., investing in Samut Prakan province near Bangkok. The other project involves expanding True Internet Data Center’s four data centers in the same province. Currently, Thailand hosts 34 data centers, with nearly 80% located near the capital. The rising adoption of digital transformation and AI across various industries, including manufacturing and services, is driving demand for such facilities.
The development of data centers is a key element in Thailand’s strategy to modernize its industrial sector and enhance value creation. In May, Microsoft announced plans to build new cloud and AI infrastructure in Thailand, offer AI skills training to over 100,000 people, and support the nation’s growing developer community. Local media reports indicate that Microsoft’s first data center will be in Rayong province in the Eastern Economic Corridor (EEC), with an estimated investment of USD 1 billion.
The Board of Investment has also increased efforts to attract foreign investment in other sectors such as electric vehicles (EV), robotics, logistics, medicine, biochemicals, and petrochemicals. Investments in data centers and other industries pushed the value of new foreign investment in Thailand to 228 billion baht in the first quarter of 2024, a 30% increase from the same period last year. Total foreign investment reached a five-year high of 848 billion baht in 2023, driven by new investments in EV from China and other industries from Taiwan, Singapore, and Japan. Data centers, with their potential to drive technological advancement, could help achieve even higher foreign investment in 2024.
(Source: Nikkei Asia)
