Thailand Secures USD 500 Million Data Centre Investment, Ready to Compete with Indonesia & other Asian Powerhouses

• Sommana Yan
• 8 December 2024
• Uncategorized
• 1571 Views

Thailand has solidified its position as a rising data center hub with a landmark real estate transaction facilitated by JLL Thailand. The deal secures prime land on Bangna-Trat Road for one of the world’s largest digital infrastructure companies, paving the way for a USD 500 million investment, according to RetalkAsia dated 23 November 2024.

This project underscores Thailand’s readiness to serve as a digital hub, bolstered by a high internet penetration rate exceeding 85% and supportive government policies, such as the Cloud First Policy and incentives from the Board of Investment, including freehold land ownership for foreign investors.

Mr. Krit Pimhataivoot, Head of Capital Markets at JLL Thailand, highlighted the country’s growing demand for high-quality data center facilities, emphasizing Thailand’s vast potential compared to regional neighbors like Malaysia and Indonesia.

“The expanding cloud infrastructure, abundant power availability, and attractive incentives are driving the growth of Thailand’s data center market, which is crucial for the nation’s digital transformation,” noted Mr. Krit Pimhataivoot.

JLL’s Managing Director for Thailand and Indonesia, Mr. Michael Glancy, pointed out that Asia’s data center capacity has doubled from 2,500 MW in 2022 to 5,000 MW in 2023. He stated, “Thailand’s strategic location and favorable investment environment make it an ideal market for data center operators.”

Alongside data centers, key asset classes such as hotels, logistics properties, and healthcare are expected to drive further investment in Thailand’s real estate sector, with significant transactions anticipated in the coming months.

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