Thailand Data Center Construction Market Size

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.