Thailand Data Center Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 12.53 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Thailand Data Center Construction Market Analysis
The Thailand data center construction market is projected to register a CAGR of 12.53%. Bangkok is well-positioned to connect investors to new opportunities arising from the increasing border trade and the region's rapid economic growth. With the huge potential of the country's renewable energy and a focus on sustainability, the number of facilities is expected to increase during the forecast period.
- In Bangkok, data centers cater to exemptions on raw materials and machinery import duties. Bangkok is the focus for much of Thailand's ocean and air freight. The capital city has both an airport and a seaport. Cisco System Inc. and Thailand are collaborating on a framework for digitalization across the country to accelerate Thailand's digital and creative economies. Cisco's CDA (Cisco's Country Digital Acceleration) program in Thailand will focus on three key areas: digital acceleration of local enterprises, technology and business innovation, and digitization of national infrastructure.
- The Digital Economy Promotion Agency (DEPA) wants to pursue six projects to drive the country's digital economy and smart city development under its fiscal 2023 budget. DEPA aims to allot THB 150 million (USD 4.3 million) to six projects to support the country's digital economy. Such instances are expected to cater to segment growth. Such developments are expected to drive opportunities for the vendors studied in the market.
- Women's mobile health (m-health) applications are currently widely used for health education, medication, prevention of illness, etc. Several developers are attempting to capitalize on this trend by designing m-health apps for the Thai healthcare system. For instance, the Government of Thailand has implemented smart technology as a medical service component for mothers using apps such as KhunLook, KidDiary, and MyYaAndYou. Such a scenario adds more data and increases the dependence on data centers in the country, resulting in opportunities for the vendors in the market.
- Environmental, cost and workforce-related challenges could restrain the global data center construction market. The environmental impacts are wide-reaching, impacting climate change, pollution, biodiversity, and natural resources. Though the challenges are broad, they present many opportunities for improvement and long-lasting positive impact. The cost of constructing the data center is also high, which could restrain small and medium enterprises from setting up a new center. The vendor's focus is on the regions that have lower costs for construction.
- The pandemic resulted in remote working, which in turn led to increased data generation locally. In addition, digitalization, 5G services deployment, and cloud-based services have led to data center demand in the country. Telecom operators such as True Corporation, AIS (Advanced Info Service), and Digital Technology Assesment Criteria (DTAC) have deployed 5G technology in some cities on a trial basis or launched commercial 5G services.
Thailand Data Center Construction Market Trends
Tier 3 is the Largest Tier Type
- The country has no facility certified with Tier 1 and Tier 2. The tier 3 data center segment reached an IT load capacity of 71.4 MW in 2021. The capacity is anticipated to grow from 74.3 MW in 2022 to 199.5 MW by 2029 at a CAGR of 15.15%. The tier 4 data center segment reached an IT load capacity of 20 MW in 2021. The capacity is anticipated to grow from 20 MW in 2022 to 50 MW by 2029 at a CAGR of 13.9%.
- In most Thai facilities, IT components can be replaced or removed without interrupting routine data center operations, so most facilities are Tier 3 certified.
- Currently, only one facility in Thailand has Tier 4 certification, i.e., SUPERNAP Thailand. It has a high fault-tolerant facility, which is ideal for consistently high traffic levels. National Telecom (NT), TOT, and SUPERNAP (Thailand) signed an MoU supporting governmental digital modernization, which is called the Data Center and Cloud Services Partnership Program.
Medium-Sized Data Centers is Expected to Hold Significant Market Share
- Medium-sized data centers are projected to register a growth of 3.4% during 2022-2029 to reach 38.4 MW by 2029. The increase in the number of start-ups and micro, small, and medium enterprises (MSMEs) in the country is contributing to the growth of the small data centers in the country. Small-scale companies across industries such as educational institutions, e-commerce, insurance, cloud-native start-ups, and the public sector (city councils) are contributing to the use of small-sized data centers.
- There are around 17 medium data centers in the country, wherein the majority of the data centers are concentrated in Bangkok, and the remaining data centers are concentrated in other parts of the country. More than 50% of these facilities are Tier 3 certified.
- With a capacity of 11.69 MW, CS LoxInfo-based data center has the highest capacity among the medium-sized data centers, with eight data centers that are medium-sized, followed by True Internet Data Center Co. Ltd, with a capacity of 7.3 MW, holding three medium-sized data centers.
- The ongoing construction of medium data center facilities, such as True Internet Data Center Co. Ltd and Nautilus Data Technologies, is further projected to contribute to the growth of the segment during the forecast period.
Thailand Data Center Construction Industry Overview
Thailand's Data Center Construction Market is fairly consolidated, with the top five companies occupying the majority of the market share. Some of the major companies are Arup Group, Delta Electronics (Thailand), TAKNET Systems (Thailand ) Co., Ltd., Project Planning Service, and Gulf Energy Development Public Company Limited.
In June 2023, Evolution Data Centers, a Singaporean firm, partnered with Thai property developer Central Pattana PCL to build a 34 MW carrier-neutral data center in Thailand for Cloud providers in the country. The company aims to build a greener hyperscale data center, resulting in opportunities for the vendors in the market.
In March 2023, NTT Ltd announced to develop a large data center in Bangkok with an investment of USD 90 million, and it is expected to be operational by the end of 2024. Such investments are expected to create opportunities for the vendors in the market.
Thailand Data Center Construction Market Leaders
Arup Group
Delta Electronics (Thailand)
TAKNET Systems (Thailand ) Co.,Ltd.
Gulf Energy Development Public Company Limited
Project Planning Service (PPS) Group PLC
*Disclaimer: Major Players sorted in no particular order
Thailand Data Center Construction Market News
- February 2023:Singapore Telecom Limited (Singtel), Gulf Energy Development PLC (Gulf), and Advanced Info Services PLC (AIS), established a joint venture to build a 20 MW capacity data center in Thailand by 2025. This facility will be operated by GSA Data Center Company Limited (GSA). The company aims to match the large-scale data center requirements of cloud players in the country.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. MARKET INSIGHTS
5. Market Overview
6. Industry Attractiveness - Porter's Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Buyers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Degree of Competition
7. Key Industry Statistics
7.1 IT Load Capacity
7.2 Raised Floor Space
7.3 Colocation Revenue
7.4 Installed Racks
7.5 Rack Space Utilization
8. MARKET DYNAMICS
9. Market Drivers
9.1 Migration to Cloud by large businesses
9.2 Established 'Mobile-First' Landscape Since the Recent Past
10. Market Restraints
10.1 Shortage of Skilled Professionals Presenting a Challenge for Several Contractors
11. MARKET SEGMENTATION
11.1 By Infrastructure
11.1.1 Electrical Infrastructure
11.1.1.1 UPS Systems
11.1.1.2 Other Electrical Infrastructure
11.1.2 Mechanical Infrastructure
11.1.2.1 Cooling Systems
11.1.2.2 Racks
11.1.2.3 Other Mechanical Infrastructure
11.1.3 Other Infrastructure
11.2 By DC Size
11.2.1 Small
11.2.2 Medium
11.2.3 Large
11.2.4 Massive
11.2.5 Mega
11.3 By Tier Type
11.3.1 Tier 1 & 2
11.3.2 Tier 3
11.3.3 Tier 4
11.4 By End User
11.4.1 IT & Telecommunication
11.4.2 BFSI
11.4.3 Government
11.4.4 Healthcare
11.4.5 Other End User
12. COMPETITIVE LANDSCAPE
13. Company Profiles
13.1 PT DCI Indonesia (DCI)
13.2 Telkomsigma
13.3 NTT Communications Corporation
13.4 XL Axiata Tbk PT (Princeton Digital Group)
13.5 GTN Data Center
13.6 Arup Group
13.7 Lintasarta
13.8 Indosat Tbk PT
13.9 DTPNet
13.10 Delta Electronics (Thailand)
13.11 TAKNET Systems (Thailand ) Co.,Ltd.
13.12 PT. Faasri Utama Sakti
13.13 JupiterDC
13.14 Biznet Networks
13.15 Project Planning Service
13.16 Gulf Energy Development Public Company Limited
13.17 Space DC Pte Ltd
13.18 Equinix Inc.
- *List Not Exhaustive
14. INVESTMENT ANALYSIS
15. MARKET OPPORTUNITIES AND FUTURE TRENDS
Thailand Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
Thailand data center construction market is segmented by infrastructure (electrical infrastructure (UPS systems and other electrical infrastructure), mechanical infrastructure (cooling systems, racks, and other mechanical infrastructure), and other infrastructure), data center size (small, medium, large, massive, and mega,), by tier type (tier 1 and 2, tier 3, and tier 4) and end-user ( it & telecommunication, BFSI, government, healthcare and other end-user). The market sizes and forecasts are provided in terms of value USD for all the above segments.
| By Infrastructure | |||||
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| Other Infrastructure |
| By DC Size | |
| Small | |
| Medium | |
| Large | |
| Massive | |
| Mega |
| By Tier Type | |
| Tier 1 & 2 | |
| Tier 3 | |
| Tier 4 |
| By End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
Frequently Asked Questions
What is the current Thailand Data Center Construction Market size?
The Thailand Data Center Construction Market is projected to register a CAGR of 12.53% during the forecast period (2024-2029)
Who are the key players in Thailand Data Center Construction Market?
Arup Group, Delta Electronics (Thailand), TAKNET Systems (Thailand ) Co.,Ltd., Gulf Energy Development Public Company Limited and Project Planning Service (PPS) Group PLC are the major companies operating in the Thailand Data Center Construction Market.
What years does this Thailand Data Center Construction Market cover?
The report covers the Thailand Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Thailand Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Thailand Data Center Construction Industry Report
Statistics for the 2024 Thailand Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Thailand Data Center Construction analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
