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Increasing Demand for AI in Thailand Pushes Data Centre Capacity Expansion by Over Threefold

Major corporations in the tech industry are invest aggressively in developing AI systems, with construction budgets reaching tens of billions of dollars.

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Expanding capacity of Thai data centres spurred by growing demand for artificial intelligence
Expanding capacity of Thai data centres spurred by growing demand for artificial intelligence

Increasing Demand for AI in Thailand Pushes Data Centre Capacity Expansion by Over Threefold

Thailand's data center sector is set for a major boost, with the capacity of its data centers expected to double by 2027, according to the Thai Data Center Association. The capacity is projected to increase from 350MW in 2024 to approximately 1GW in 2027.

This expansion is a response to the nation's accelerated efforts to boost high-tech industries. Supparat Singhara Na Ayutthaya, vice chairman of the Thai Data Center Association, stated that there will be many more global technology companies diversifying their data center facilities to Thailand.

Global technology companies are showing interest in investing in Thailand's data center sector. Alphabet Inc's Google, Amazon.com Inc, Microsoft Corp, and Nvidia Corp are among the tech giants investing billions in AI infrastructure in Thailand and Southeast Asia.

Thailand's steady power generation and water supply have made it an attractive destination for these investments. In the first half of the year, investment applications worth āļŋ322 billion (US$9.9 billion) were approved for 36 tech projects in Thailand, most of which were data centers.

However, the Thai Data Center Association is awaiting clarity about the US plan to restrict shipments of AI chips and its potential impact on Thailand's data centers. Currently, there are no publicly available reports indicating that global technology companies have announced plans to expand or establish new data center operations in Thailand in the upcoming years.

Thailand aims to catch up to countries like Malaysia and Singapore, regional leaders in data center and cloud computing services. The investment required for a data center in Thailand is proportional to its capacity, with each megawatt costing about US$10 million.

As Thailand's data center sector grows, it is expected to create jobs and stimulate economic growth. The expansion is a positive sign for Thailand's tech industry and its ambition to become a regional hub for data center services.

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