Press Release

Thailand Data Center Market is Expected to Register a Steady CAGR by 2024-2028

The Thailand data center market is expected to grow during the forecast period due to the rapid adoption of cloud and digital transformation by companies.


According to TechSci Research report Thailand Data Center Market by Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Others), By Type (Corporate, Web Hosting), By End User Industry (Information Technology & Telecom, Government, BFSI, Healthcare, Others), By Region, Competition, Forecast & Opportunities, 2028F, data protection has become a worldwide concern, and it is quickly becoming a priority for the Thailand government as well. The growing digitalization, faster internet speed, and smart technologies process high data consumption that has spurred the need to store and process data efficiently. In addition, the country's digital economy and government incentives present attractive investment opportunities that are expected to dramatically increase the demand for data centers in Thailand. The Thailand’s BOI (Board of Investment) promotion scheme, offering a range of tax incentives and other benefits to various enterprises that invest in data centers in Thailand are significantly attracting foreign enterprises to invest in the country. The BOI promotion scheme includes tax holidays of up to eight years, exemptions or reductions in import duties, and business facilitation services. To meet the increasing demand, several major players in the industry have invested heavily in Thailand. The integration of cloud and other advanced technology in industries have proliferated the demand for data center in the country. For instance, in 2022, Amazon web services announced its plan to invest USD 5 billion in the next 15 years to expand its cloud service capacity in Thailand and the region. This will expedite the growth of data centers in Thailand during the forecast period.


The increase in smartphone users and an increase in the need for data and high bandwidth capacity is driving the Thailand data center market. Thailand's data center industry is expanding rapidly in the age of digitization. The nation is ideally positioned to serve as a hub for data centers specializing in cloud computing technologies, including artificial intelligence, machine learning, and advanced analytical techniques. Measures taken by the government, such as digital economic cluster policy to strengthen the industrial value chain, enhancing Thailand’s investment potentials and competitiveness in Chiang Mai province enabling various companies to collaborate in all facets of the business related to technological developments such as cloud service, data center, and software park. Such government initiatives and developments are expected to provide an additional backbone for the evolving Thailand data center market through 2028.


The Thailand data center market is divided based on solution, type, and end-user industry. Based on solution, the market is further bifurcated into IT infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure, and others. Based on type, the market is segmented into corporate and web hosting. Based on end-user industry, the market is further segmented into information technology & telecom, government, BFSI, healthcare, and others.

 

Based on solution, the IT Infrastructure showcased the lucrative market growth in 2022 because of the rising demand for digital infrastructure projects in industries such as banking/fintech, telecommunications, energy, smart agriculture, and government. Thailand has acquired the most advanced internet infrastructure in ASEAN as a consequence of ongoing investment. Moreover, as per International Data Corporation (IDC), there is increased interest and demand for cloud services among public and private sector enterprises as Thailand is one of the largest data markets. In addition, infrastructure development is a critical success factor that stimulates and supports economic growth. In 2021, Thailand's total internet users were recorded at 61 million, which accounted for 85% of the total population. Furthermore, the National Digital Economy and Society Commission (NDESC) has unveiled the expansion plan of broadband services to 75,000 villages to expand the country’s 30% digital economy by 2027. The rising applications of IT technical training and IT consulting, management, software/enterprise applications (ERP and CRM systems, finance, and accounting software), data centers and data storage, and online services are all opportunities for service providers.


Browse over XX market data Figures spread through XX Pages and an in-depth TOC on the "Thailand Data Center Market.”


Key market players in the Thailand data center market include: 

  • KDDI (Thailand) Ltd.
  • True Internet Data Center Co., Ltd (Thailand)
  • CS LoxInfo Data Center
  • Tcc Technology Co Ltd (Thailand)
  • NTT (Thailand) Ltd.
  • G-Able Public Company Limited
  • AIS-CSL
  • Bridge Data Centers (Thailand) Ltd.
  • JasTel Network Co., Ltd.
  • ST Telemedia Thailand Pte. Ltd.


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“The Thailand government has welcomed huge Foreign Direct Investment (FDI) under the automatic route. The country received a foreign direct investment (FDI) of USD 20 billion during 2022, a rise of 39 percent as compared to 2021. The strategic geographical presence and supply chain has displayed strong investor confidence from global leaders such as Amazon web services, NTT Ltd, ST Telemedia Global Data Centers (STT GDC), and many more. Central Thailand region, being the most popular hub in both domestic and commercial infrastructure holds the largest market share of data centers, benefiting from the presence of a landing station and submarine cable connectivity in the region. Bangkok has the establishment of maximum data centers in the Central Thailand region. The introduction of 5G networks and cloud services will strengthen the region's digital economy and increase the demand for high-bandwidth networking infrastructure. In addition, the huge volume of internet traffic and the presence of several cloud services providers are further attributing to the market growth. Due to investments from colocation providers along with data centers are constructions. Moreover, the development in Eastern Economic Corridor’s Amata City Chonburi industrial estate offering the new infrastructure to the enterprises with scalable IT infrastructure, optimum power efficiency are attracting the entry of new market players to build local data centers in Thailand,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

Thailand Data Center Market by Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Other), By Type (Corporate, Web Hosting), By End-User Industry (Information Technology & Telecom, Government, BFSI, Healthcare, Others), By Region, Competition, Forecast & Opportunities, 2028F has evaluated the future growth potential of the Thailand data center market and provides statistics & information on market size, structure, and future market growth. The report's goal is to give current market knowledge and assist decision makers in making informed investment decisions. Furthermore, the study identifies and analyses emerging trends, as well as key drivers, challenges, and opportunities in the Thailand data center market.



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