Thailand has rapidly emerged as one of Asia-Pacific’s most dynamic data centre markets, driven by surging AI demand, competitive infrastructure fundamentals, and a neutral geopolitical stance attracting major technology players. Once a secondary market, it is now seeing billion-dollar project financings and global joint ventures. This article explores how these factors are converging to position Thailand as Southeast Asia’s next major hub for digital infrastructure.
Introduction
Thailand’s data centre market has entered a pivotal stage in its development, emerging as one of the fastest-growing destinations for digital infrastructure investment in Asia. What began as modest, locally focused operations has evolved into a landscape defined by billion-dollar project financings, global joint ventures, and increasing participation from multilateral lenders. The country’s appeal lies not only in its competitive development fundamentals but also in its neutral geopolitical stance, which allows both US and Chinese technology players to expand under a supportive trade and incentive framework. With total capacity projected to approach 1 GW by 2027, Thailand is now positioned at the centre of the region’s next wave of AI-driven infrastructure growth, where investment, policy, and sustainability are converging to shape Southeast Asia’s newest data-centre hub.
Thailand’s data centre market has entered a pivotal stage in its development, emerging as one of the fastest-growing destinations for digital infrastructure investment in Asia. What began as modest, locally focused operations has evolved into a landscape defined by billion-dollar project financings, global joint ventures, and increasing participation from multilateral lenders. The country’s appeal lies not only in its competitive development fundamentals but also in its neutral geopolitical stance, which allows both US and Chinese technology players to expand under a supportive trade and incentive framework. With total capacity projected to approach 1 GW by 2027, Thailand is now positioned at the centre of the region’s next wave of AI-driven infrastructure growth, where investment, policy, and sustainability are converging to shape Southeast Asia’s newest data-centre hub.
Overview of the APAC Market
The Asia-Pacific data centre market has recently undergone a significant transformation. The boom in AI and cloud services has been driving robust demand for both colocation and hyperscale data centres, attracting intense strategic and sponsor interest across the region.
APAC data centre capacity is projected to double to around 30 GW by 2027-28, which may still fall short of demand by 15-25 GW. Underpinning this rapid growth trajectory are robust structural tailwinds related to the AI revolution. In turn, this momentum is drawing more investors into the market, as data centres offer stable cash flows and long-term leases with creditworthy tech tenants. Furthermore, much of the region’s existing infrastructure was built pre-AI, meaning many facilities may fall short of new performance requirements and creating a growing supply gap for next-gen, AI-ready facilities.
Historically, APAC’s data centre investment landscape was dominated by a few mature hubs. Tokyo, Singapore, and Hong Kong were the primary centres of development, attracting the majority of capital flows due to their strong connectivity and well-developed markets. However, as these developed hubs face land and power constraints, investment is increasingly shifting toward emerging markets. In particular, Johor (Malaysia) and, to a lesser extent, Indonesia have benefited most from spillover demand originating in Singapore, outpacing other Asian markets in attracting data centre investments. Now, attention is increasingly turning to Thailand and Vietnam, where data centre investment was nascent but is rapidly gaining traction.
The Asia-Pacific data centre market has recently undergone a significant transformation. The boom in AI and cloud services has been driving robust demand for both colocation and hyperscale data centres, attracting intense strategic and sponsor interest across the region.
APAC data centre capacity is projected to double to around 30 GW by 2027-28, which may still fall short of demand by 15-25 GW. Underpinning this rapid growth trajectory are robust structural tailwinds related to the AI revolution. In turn, this momentum is drawing more investors into the market, as data centres offer stable cash flows and long-term leases with creditworthy tech tenants. Furthermore, much of the region’s existing infrastructure was built pre-AI, meaning many facilities may fall short of new performance requirements and creating a growing supply gap for next-gen, AI-ready facilities.
Historically, APAC’s data centre investment landscape was dominated by a few mature hubs. Tokyo, Singapore, and Hong Kong were the primary centres of development, attracting the majority of capital flows due to their strong connectivity and well-developed markets. However, as these developed hubs face land and power constraints, investment is increasingly shifting toward emerging markets. In particular, Johor (Malaysia) and, to a lesser extent, Indonesia have benefited most from spillover demand originating in Singapore, outpacing other Asian markets in attracting data centre investments. Now, attention is increasingly turning to Thailand and Vietnam, where data centre investment was nascent but is rapidly gaining traction.
Thailand as a Primary Market
Thailand’s data centre market has emerged recently at the forefront of APAC’s data centre landscape. Traditionally, Thailand’s digital infrastructure comprised mostly small-scale, telco-owned or enterprise data centres addressing local needs. While demand was relatively modest in the early 2010s, the past few years have marked a turning point. Investor and operator interest is growing rapidly amid active expansion from hyperscalers. Thailand’s rise as a regional data centre hub is driven by a combination of strategic geography, infrastructure readiness, competitive costs, and proactive policy support.
Located in the heart of Southeast Asia, Thailand benefits from strong international connectivity, with eight international submarine cable systems landing in the country and cross-border terrestrial links to regional networks. Its strategic position between established hubs such as Singapore and rapidly expanding digital economies like Vietnam and Indonesia makes it a natural interconnection point within the regional data ecosystem.
The country’s land and power availability have been decisive advantages. Unlike land-scarce Singapore or Hong Kong, Thailand offers vast, competitively priced sites suitable for hyperscale campuses. The Eastern Economic Corridor (EEC) has become the epicentre of development thanks to the presence of established industrial zones, offering a more infrastructure-ready environment for large-scale builds. Thailand’s diversified energy mix and reliable grid further strengthen its attractiveness, with the Thai Data Centre Association highlighting the country’s “steady power generation and water supply” as key draws for investors.
The domestic digital economy is expanding rapidly. With roughly 70 million inhabitants, Thailand is experiencing growing internet penetration, cloud adoption, and digital-service usage. Rising e-commerce, fintech, and streaming have generated increasing demand for local cloud and hosting capacity, drawing global hyperscalers to establish local infrastructure.
The Thai government has reinforced this momentum. The Board of Investment (BOI) offers incentives for data centres, including corporate income tax exemptions for up to eight years and exemptions on import duties for machinery. The Cloud First Policy encourages public-sector adoption of cloud computing, while partnerships such as the one with NVIDIA aim to build sovereign AI capabilities. These all show an alignment between public and private digital strategies. In 2025 alone, the BOI approved $16.1 bn in data centre investment across 28 projects, marking a 20x increase from the same period in the prior year.
As these policies take effect, Thailand’s ecosystem has entered a self-sustaining growth phase. The presence of major cloud operators attracts institutional and private-equity capital, while partnerships between international funds and local conglomerates strengthen execution capacity and confidence in the market’s stability.
Thailand’s advantages have thus aligned with regional trends to position it as Southeast Asia’s next major data centre growth hub. It is now routinely mentioned alongside Malaysia and Indonesia as a primary emerging market. The broader regional financing landscape underscores the change: data centre loan volumes across Asia rose nearly 50% year-on-year in 2024 to about $11 bn, and 2025 is on track to surpass $15 bn as major projects achieve financial close. Thailand has been one of the key contributors to this surge, supported by multiple large-scale developments backed by both global infrastructure funds and domestic conglomerates.
Thailand’s data centre market has emerged recently at the forefront of APAC’s data centre landscape. Traditionally, Thailand’s digital infrastructure comprised mostly small-scale, telco-owned or enterprise data centres addressing local needs. While demand was relatively modest in the early 2010s, the past few years have marked a turning point. Investor and operator interest is growing rapidly amid active expansion from hyperscalers. Thailand’s rise as a regional data centre hub is driven by a combination of strategic geography, infrastructure readiness, competitive costs, and proactive policy support.
Located in the heart of Southeast Asia, Thailand benefits from strong international connectivity, with eight international submarine cable systems landing in the country and cross-border terrestrial links to regional networks. Its strategic position between established hubs such as Singapore and rapidly expanding digital economies like Vietnam and Indonesia makes it a natural interconnection point within the regional data ecosystem.
The country’s land and power availability have been decisive advantages. Unlike land-scarce Singapore or Hong Kong, Thailand offers vast, competitively priced sites suitable for hyperscale campuses. The Eastern Economic Corridor (EEC) has become the epicentre of development thanks to the presence of established industrial zones, offering a more infrastructure-ready environment for large-scale builds. Thailand’s diversified energy mix and reliable grid further strengthen its attractiveness, with the Thai Data Centre Association highlighting the country’s “steady power generation and water supply” as key draws for investors.
The domestic digital economy is expanding rapidly. With roughly 70 million inhabitants, Thailand is experiencing growing internet penetration, cloud adoption, and digital-service usage. Rising e-commerce, fintech, and streaming have generated increasing demand for local cloud and hosting capacity, drawing global hyperscalers to establish local infrastructure.
The Thai government has reinforced this momentum. The Board of Investment (BOI) offers incentives for data centres, including corporate income tax exemptions for up to eight years and exemptions on import duties for machinery. The Cloud First Policy encourages public-sector adoption of cloud computing, while partnerships such as the one with NVIDIA aim to build sovereign AI capabilities. These all show an alignment between public and private digital strategies. In 2025 alone, the BOI approved $16.1 bn in data centre investment across 28 projects, marking a 20x increase from the same period in the prior year.
As these policies take effect, Thailand’s ecosystem has entered a self-sustaining growth phase. The presence of major cloud operators attracts institutional and private-equity capital, while partnerships between international funds and local conglomerates strengthen execution capacity and confidence in the market’s stability.
Thailand’s advantages have thus aligned with regional trends to position it as Southeast Asia’s next major data centre growth hub. It is now routinely mentioned alongside Malaysia and Indonesia as a primary emerging market. The broader regional financing landscape underscores the change: data centre loan volumes across Asia rose nearly 50% year-on-year in 2024 to about $11 bn, and 2025 is on track to surpass $15 bn as major projects achieve financial close. Thailand has been one of the key contributors to this surge, supported by multiple large-scale developments backed by both global infrastructure funds and domestic conglomerates.
Select Case Studies
Having evolved from a localised market into a regional investment hub, Thailand’s data-centre sector is now defined by large-scale financings and cross-border partnerships. The following investments illustrate how different classes of capital, including global private equity funds, infrastructure platforms, corporates, and development finance institutions, are shaping the country’s next phase of growth in the digital infrastructure space. Together, they show that what began as policy-driven expansion has matured into a diversified, institutional market where digital assets are financed with the same rationale as traditional infrastructure.
A landmark transaction in this transformation is Thai DC One, a joint venture between Global Infrastructure Partners (GIP), the infrastructure-investing arm of BlackRock, holding 40 percent of the equity, and True IDC, the leading regional data centre operator and subsidiary of Charoen Pokphand Group (CP Group), which retains the remaining 60 percent. The joint venture is developing a greenfield data centre campus with 82.6 MW of installed capacity in the Rayong region. As GIP’s chairman and CEO Bayo Ogunlesi remarked, “The growth of data consumption and AI requires significant amounts of private capital to fund investments to help the world’s leading data centre developers and operators provide this essential infrastructure to their customers.” The decision to locate the facility in Rayong, within Thailand’s Eastern Economic Corridor (EEC), reflects the area’s advanced industrial ecosystem and access to high-capacity grid and fibre infrastructure, which are key prerequisites for hyperscale and AI workloads that demand operational reliability and low latency. Its proximity to Chonburi, where projects such as DayOne’s 120 MW Tech Park and Bridge Data Centres’ planned 200 MW campus are taking shape, places Rayong at the centre of the country’s emerging digital-infrastructural cluster.
In October 2025, GIP launched a $530 mn project finance loan to fund construction, the first broadly syndicated facility of its kind for a data centre in Southeast Asia. The financing comprises a syndicated US dollar tranche with bullet repayment and a non-syndicated baht tranche. Clifford Capital, Crédit Agricole CIB, Deutsche Bank, HSBC, and Standard Chartered acted as mandated lead arrangers, bookrunners, and underwriters. The US dollar tranche carries a 270bps margin over SOFR, stepping down to 250bps once the project becomes operational, a milestone expected in the second half of 2026. The borrower agreed to an all-in spread of 282bps, including a 60bps upfront fee for lenders committing more than $50 mn, and 279bps (with 45bps upfront) for commitments between $25 mn and $50 mn. The transaction’s credit strength is enhanced by an offtake agreement with ByteDance, the Chinese owner of TikTok, which provides predictable revenue and significantly de-risks the financing from the lenders’ perspective. Thai DC One has thus set a new benchmark for structuring large scale, AI-ready data centre projects in the region, demonstrating how international investors are applying infrastructure-grade standards to the digital economy space.
Yet, GIP was not the first to recognise the potential of Southeast Asia’s fast-growing data infrastructure market. Another major infrastructure investor, Stonepeak, had anticipated the opportunity several years earlier through the creation of its portfolio platform Digital Edge. Launched in 2020 with an initial $1 bn capital commitment, the platform was designed to capture rising digital connectivity demand across the APAC region. According to Brian McMullen, Senior Managing Director at Stonepeak, “The Asia Pacific digital infrastructure market is among the fastest growing in the world, with demand continuing to outpace supply”. Over the following years, Digital Edge expanded rapidly, acquiring and developing more than 30 facilities in key markets such as Japan, South Korea, Singapore, and Indonesia.
In January 2025, Digital Edge strengthened its balance sheet with a $1.6 bn combination of debt and equity financing, providing fresh capacity to pursue large-scale developments. With this additional capital, the company transitioned from incremental acquisitions to the construction of new hyperscale campuses. This strategy culminated in September 2025 with the announcement of a 100 MW greenfield campus in Chonburi, marking Digital Edge’s first investment in Thailand. The project, valued at roughly $1 bn, is located within the EEC and will be among the country’s largest data centre complexes, built to support hyperscaler and AI workloads. Its location offers direct access to industrial clusters, stable power supply, and major subsea cable routes, underscoring the EEC’s emergence as a regional hub for digital infrastructure. The Chonburi campus demonstrates how private-equity-backed platforms are institutionalising digital infrastructure in Southeast Asia. For Thailand, it signals the arrival of a second generation of international investors, those that not only recognise the country’s potential but also have the platform scale and financial depth to execute on it.
Thailand’s ecosystem maturity further emerges from the interplay between corporates’ strategic initiatives and development-finance institutions. Assuming a critical role in developing economies, such institutions strengthen policy agendas by mobilising their balance sheets and investing in projects that promote economic development and social progress. In Thailand, the Asian Development Bank (ADB) has begun to apply this mandate to the digital-infrastructure sector, recognising that data connectivity and AI capabilities are now essential components of sustainable growth. In November 2024, the ADB’s Board approved a loan of up to B 1 billion (c. $27 mn) from its ordinary capital resources to GSA Data Centre Company Limited for the GSA Energy-Efficient Green Data Centre Project. The borrower, a JV formed in 2023 by Gulf Energy Development, Singapore Telecommunications, and Advanced Info Service, is developing a 25.6 MW Tier III “Rated 3” facility in Samut Prakan, a province adjacent to Bangkok.
According to the ADB report, the data centre will feature a power-usage effectiveness (PUE) of 1.4x, pursue LEED Gold certification (a certification level obtained by buildings and facilities who score a high sustainability performance under the LEED rating system), and serve as Thailand’s first green-loan-certified data centre project. These design standards will substantially improve energy efficiency and reduce the sector’s carbon footprint, aligning the project with Thailand’s national goals of cutting emissions by 30 percent by 2030, achieving carbon neutrality by 2050, and reaching net-zero emissions by 2065. The ADB’s financing supplements a THB 7.3 billion (c. $190 mn) limited-recourse green-loan facility arranged in August 2024 to fund the same campus, which will host a mix of technology firms, AI developers, and GPU-computing providers.
Beyond its financial dimension, the project underscores the strategic convergence of energy, telecommunications, and sustainable finance now defining Thailand’s digital infrastructure build-out. By classifying the facility as a climate finance project, ADB signalled that data centres have entered the mainstream of development lending, once reserved for power, transport, and water infrastructure. The project also serves as a demonstration of sustainability best practice, with ADB technical assistance supporting renewable energy procurement mechanisms under its “Bio-Circular-Green Economy” programme. For Thailand, ADB’s involvement validates the sector’s bankability and policy maturity: the country’s regulatory and ESG frameworks now meet the standards required for multilateral lending. For ADB, GSA’s Data Centre establishes a replicable model for green, energy-efficient digital infrastructure across emerging Asia, proof that the region’s digital transformation can advance in parallel with its climate commitments.
These investments demonstrate that big investors are now building real campuses. The question that follows is what might speed them up or slow them down. Thailand sits between the US and China and is a key player in regional trade deals. Therefore, rules on AI chips, clean power, and taxes matter. These now shape delivery times, site choices, and costs more than tariffs do. In short, the money is ready, and policy and regulation will set the pace.
Geopolitics
Thailand is walking a fine line between being both a US treaty ally and a major non-NATO ally, yet is also deeply connected to China through trade and investment. Balancing US and Chinese relations, along with a web of regional free-trade agreements and smart investment incentives, has made Thailand a destination for American hyperscalers and Chinese platforms.
In the next few years, tariffs will not shape the landscape as much as friction around export controls for AI chips, access to clean energy, and taxes on the equipment powering data centres.
On the US side, Thailand has been a treaty ally since 1954 and a major non‑NATO ally since 2003. The US holds both close defence and economic cooperation with Thailand. At the same time, US firms are now among the largest cloud builders in the country: AWS launched the Thailand Region in January 2025, while Microsoft and Google have announced major cloud and AI initiatives.
Thailand’s trade with China remains large and growing, backed by free trade agreements, including the ASEAN–China FTA, which has strengthened cooperation to include language relevant to the digital and green economy, particularly in relation to data-centre supply chains. Additionally, the RCEP (Regional Comprehensive Economic Partnership), gives firms multiple lanes for parts sourced around the region. These FTAs have incentivised China to invest in Thailand. Notably, in March 2025, Thailand’s BOI approved Beijing Haoyang Cloud & Data’s 300 MW campus (c. THB 72.7 bn), and TikTok/ByteDance outlined multi‑year builds (first THB 126.8 bn, then signalled $8.8 bn). The government framed these alongside US hyperscaler plans as part of a neutral, build-here stance.
Tariffs and landed‑cost reality for data-centre equipment
Thailand’s trade and investment framework offers multiple layers of import-duty relief and incentives for data centre equipment.
Firstly, Thailand participates in the WTO Information Technology Agreement (ITA), which sets import duties on the essential IT kit (servers, storage and networking) to zero. This implies that the products covered by the ITA don’t face customs duty in Thailand, regardless of where they’re shipped from. Secondly, Regional FTAs, primarily ATIGA (intra-ASEAN) and RCEP, help with gear that is not covered by the ITA, for example power/cooling balance-of-plant, making it simpler to qualify for favourable tariff rates and clear customs quickly when sourcing from member countries.
Lastly, Thailand’s board of investments (BOI) policies have been successful in attracting foreign investment. For instance, data centres promoted by the BOI are eligible for import‑duty exemption on machinery. In essence, Thailand’s tariff and incentive structure makes imported data-centre equipment cheaper than in many other countries, lowering the landed cost and improving competitiveness.
Thailand’s growing role as a regional data and technology hub faces both opportunities and constraints shaped by global export rules and domestic energy reforms. Today’s tightest constraint on investment into Thailand is global export controls on advanced AI chips rather than Thailand’s customs duty. The US industry and security department tightened rules in October 2023 and again in December 2024, expanding control on advanced‑computing items and semiconductor equipment. Thailand isn’t a target destination for these constraints; however, suppliers may need to do additional checks on how the top-tier GPUs will be used, and delivery times may be longer, creating a planning issue for both US and Chinese tenants building in Thailand.
One major challenge to US investment is the close partnership between Thailand’s top mobile operator AIS and Huawei on 5G network programs, where the US prefers non-Huawei stacks. Additionally, a brand-new clean power option is on the horizon, hyperscalers and big corporations require credible renewable-energy pathways. In June 2024, Thailand approved a program called NEPC that would allow large energy customers, like data centres, to buy green power directly from producers. More recently, in October 2025, the energy regulatory commission proposed a framework and rules to implement the NEPC. When finalized, both these initiatives will make it simpler for investors to buy clean energy through the national grid.
Hence, in the near future, it is likely that US hyperscalers and China-linked platforms will continue sending in investments, as their current massive capital expenditures reflect Thailand’s neutral stance and the eagerness of both nations to reduce risks to supply chains and data control. Tariffs aren’t a problem for data-centre equipment as per the ITA, FTA and the board of investment’s policies, rather the trickier problems pertain to AI-chip export controls, green power contracts and grid synchronisation.
Thailand is walking a fine line between being both a US treaty ally and a major non-NATO ally, yet is also deeply connected to China through trade and investment. Balancing US and Chinese relations, along with a web of regional free-trade agreements and smart investment incentives, has made Thailand a destination for American hyperscalers and Chinese platforms.
In the next few years, tariffs will not shape the landscape as much as friction around export controls for AI chips, access to clean energy, and taxes on the equipment powering data centres.
On the US side, Thailand has been a treaty ally since 1954 and a major non‑NATO ally since 2003. The US holds both close defence and economic cooperation with Thailand. At the same time, US firms are now among the largest cloud builders in the country: AWS launched the Thailand Region in January 2025, while Microsoft and Google have announced major cloud and AI initiatives.
Thailand’s trade with China remains large and growing, backed by free trade agreements, including the ASEAN–China FTA, which has strengthened cooperation to include language relevant to the digital and green economy, particularly in relation to data-centre supply chains. Additionally, the RCEP (Regional Comprehensive Economic Partnership), gives firms multiple lanes for parts sourced around the region. These FTAs have incentivised China to invest in Thailand. Notably, in March 2025, Thailand’s BOI approved Beijing Haoyang Cloud & Data’s 300 MW campus (c. THB 72.7 bn), and TikTok/ByteDance outlined multi‑year builds (first THB 126.8 bn, then signalled $8.8 bn). The government framed these alongside US hyperscaler plans as part of a neutral, build-here stance.
Tariffs and landed‑cost reality for data-centre equipment
Thailand’s trade and investment framework offers multiple layers of import-duty relief and incentives for data centre equipment.
Firstly, Thailand participates in the WTO Information Technology Agreement (ITA), which sets import duties on the essential IT kit (servers, storage and networking) to zero. This implies that the products covered by the ITA don’t face customs duty in Thailand, regardless of where they’re shipped from. Secondly, Regional FTAs, primarily ATIGA (intra-ASEAN) and RCEP, help with gear that is not covered by the ITA, for example power/cooling balance-of-plant, making it simpler to qualify for favourable tariff rates and clear customs quickly when sourcing from member countries.
Lastly, Thailand’s board of investments (BOI) policies have been successful in attracting foreign investment. For instance, data centres promoted by the BOI are eligible for import‑duty exemption on machinery. In essence, Thailand’s tariff and incentive structure makes imported data-centre equipment cheaper than in many other countries, lowering the landed cost and improving competitiveness.
Thailand’s growing role as a regional data and technology hub faces both opportunities and constraints shaped by global export rules and domestic energy reforms. Today’s tightest constraint on investment into Thailand is global export controls on advanced AI chips rather than Thailand’s customs duty. The US industry and security department tightened rules in October 2023 and again in December 2024, expanding control on advanced‑computing items and semiconductor equipment. Thailand isn’t a target destination for these constraints; however, suppliers may need to do additional checks on how the top-tier GPUs will be used, and delivery times may be longer, creating a planning issue for both US and Chinese tenants building in Thailand.
One major challenge to US investment is the close partnership between Thailand’s top mobile operator AIS and Huawei on 5G network programs, where the US prefers non-Huawei stacks. Additionally, a brand-new clean power option is on the horizon, hyperscalers and big corporations require credible renewable-energy pathways. In June 2024, Thailand approved a program called NEPC that would allow large energy customers, like data centres, to buy green power directly from producers. More recently, in October 2025, the energy regulatory commission proposed a framework and rules to implement the NEPC. When finalized, both these initiatives will make it simpler for investors to buy clean energy through the national grid.
Hence, in the near future, it is likely that US hyperscalers and China-linked platforms will continue sending in investments, as their current massive capital expenditures reflect Thailand’s neutral stance and the eagerness of both nations to reduce risks to supply chains and data control. Tariffs aren’t a problem for data-centre equipment as per the ITA, FTA and the board of investment’s policies, rather the trickier problems pertain to AI-chip export controls, green power contracts and grid synchronisation.
Outlook
Amid these intersecting investment and policy dynamics, Thailand’s digital infrastructure build-out is now entering a decisive growth phase. The foundation laid by large-scale financings, balanced foreign participation, and supportive regulation has positioned the country for a sustained expansion cycle. With multiple hyperscale campuses under construction and a growing focus on energy efficiency, the next stage will be defined by how quickly new capacity can be delivered to meet surging AI and cloud demand.
Thailand plans to expand total data centre capacity to about 1 GW by 2027, up from roughly 350 MW in 2024, nearly tripling in three years, according to the Thai Data Centre Association. This surge is being driven by a wave of hyperscale projects and large campuses announced in recent years. DC Byte data show that Thailand, led by Bangkok and the Eastern Economic Corridor (EEC), already has over 150 MW of live capacity and more than 500 MW under development as of 2025. As these projects are completed, total capacity is projected to reach around 1 GW by 2027, positioning Thailand as the region’s second-largest data centre market after Johor.
Amid these intersecting investment and policy dynamics, Thailand’s digital infrastructure build-out is now entering a decisive growth phase. The foundation laid by large-scale financings, balanced foreign participation, and supportive regulation has positioned the country for a sustained expansion cycle. With multiple hyperscale campuses under construction and a growing focus on energy efficiency, the next stage will be defined by how quickly new capacity can be delivered to meet surging AI and cloud demand.
Thailand plans to expand total data centre capacity to about 1 GW by 2027, up from roughly 350 MW in 2024, nearly tripling in three years, according to the Thai Data Centre Association. This surge is being driven by a wave of hyperscale projects and large campuses announced in recent years. DC Byte data show that Thailand, led by Bangkok and the Eastern Economic Corridor (EEC), already has over 150 MW of live capacity and more than 500 MW under development as of 2025. As these projects are completed, total capacity is projected to reach around 1 GW by 2027, positioning Thailand as the region’s second-largest data centre market after Johor.
Development Pipeline
Thailand’s pipeline includes a diverse mix of global and regional operators, reflecting strong market momentum. Hyperscalers such as AWS, Google, and Microsoft are establishing new Thai cloud regions and availability zones, typically expanding in phases as utilisation and AI workloads rise.
At the same time, large hyperscale campuses are taking shape, particularly in the EEC. ByteDance plans one or more mega-campuses near Bangkok and Rayong, while Haoyang Cloud is constructing a 300 MW site in Rayong. Bridge Data Centres intends to build a 200 MW facility in Chonburi, and Hong Kong-based DayOne is developing the 120 MW Chonburi Tech Park, according to DC Byte. Concentrating these projects in the EEC supports the government’s plan to develop a high-tech zone with secure land, strong grid access, and proximity to energy infrastructure.
Private equity and joint-venture initiatives are further expanding the ecosystem. Global Infrastructure Partners has partnered with CP Group’s True IDC, while Digital Edge and B.Grimm Power are developing hyperscale and AI-ready campuses in the EEC. The Gulf-Singtel-AIS venture is also building energy-efficient data centres combining expertise in energy, telecommunications, and local operations. Together, these alliances diversify investors and strengthen local delivery capacity.
Alongside these large-scale ventures, colocation and enterprise-focused developments are expanding. Equinix now operates two Bangkok IBX data centres, joined by NTT, ST Telemedia, and Telehouse, while domestic players such as True IDC and National Telecom continue upgrading sites. This creates a balanced ecosystem in which hyperscale campuses in the EEC support cloud and AI workloads, while Bangkok remains the main hub for enterprise clients and interconnection traffic.
Analysts remain optimistic. Krungsri Research projects annual growth of 7.5 to 8.5 percent over 2025 to 2027, supported by enterprise cloud migration and digital transformation, while Mordor Intelligence forecasts compound growth of about 17 percent through 2030. Thailand’s growing role as a distribution point for edge and content-delivery networks serving neighbouring countries will be reinforced by improved connectivity through the Asia Pacific Gateway and the upcoming SJC2 submarine-cable system.
Thailand’s pipeline includes a diverse mix of global and regional operators, reflecting strong market momentum. Hyperscalers such as AWS, Google, and Microsoft are establishing new Thai cloud regions and availability zones, typically expanding in phases as utilisation and AI workloads rise.
At the same time, large hyperscale campuses are taking shape, particularly in the EEC. ByteDance plans one or more mega-campuses near Bangkok and Rayong, while Haoyang Cloud is constructing a 300 MW site in Rayong. Bridge Data Centres intends to build a 200 MW facility in Chonburi, and Hong Kong-based DayOne is developing the 120 MW Chonburi Tech Park, according to DC Byte. Concentrating these projects in the EEC supports the government’s plan to develop a high-tech zone with secure land, strong grid access, and proximity to energy infrastructure.
Private equity and joint-venture initiatives are further expanding the ecosystem. Global Infrastructure Partners has partnered with CP Group’s True IDC, while Digital Edge and B.Grimm Power are developing hyperscale and AI-ready campuses in the EEC. The Gulf-Singtel-AIS venture is also building energy-efficient data centres combining expertise in energy, telecommunications, and local operations. Together, these alliances diversify investors and strengthen local delivery capacity.
Alongside these large-scale ventures, colocation and enterprise-focused developments are expanding. Equinix now operates two Bangkok IBX data centres, joined by NTT, ST Telemedia, and Telehouse, while domestic players such as True IDC and National Telecom continue upgrading sites. This creates a balanced ecosystem in which hyperscale campuses in the EEC support cloud and AI workloads, while Bangkok remains the main hub for enterprise clients and interconnection traffic.
Analysts remain optimistic. Krungsri Research projects annual growth of 7.5 to 8.5 percent over 2025 to 2027, supported by enterprise cloud migration and digital transformation, while Mordor Intelligence forecasts compound growth of about 17 percent through 2030. Thailand’s growing role as a distribution point for edge and content-delivery networks serving neighbouring countries will be reinforced by improved connectivity through the Asia Pacific Gateway and the upcoming SJC2 submarine-cable system.
Sustainability
As development accelerates, sustainability has become a key focus. Data centres are energy-intensive, and Thailand’s planned IT load will substantially increase national electricity demand. The government, which has ratified the Paris Agreement, aims for around 30 percent renewables in the power mix by the early 2030s. The Asian Development Bank’s green loan for the GSA project, centred on energy efficiency and renewable sourcing, highlights financial-sector support for sustainable infrastructure.
Operators are pursuing decarbonisation through long-term power purchase agreements with solar farms, which are considered the most practical route toward net-zero operations. B.Grimm Power is in discussions to supply renewable energy to major data centres. Newer facilities are adopting efficiency technologies such as liquid and immersion cooling and low-PUE designs to manage high-density AI workloads in a tropical climate. As a late entrant to large-scale cloud infrastructure, Thailand can integrate such innovations from the outset rather than retrofit them later.
Water use poses an additional challenge. As cooling demand rises, operators are exploring closed-loop and air-cooled systems to reduce water consumption. Thailand may also look to Singapore’s model, which links data centre licensing to energy and water efficiency standards, as a framework for future regulation.
As development accelerates, sustainability has become a key focus. Data centres are energy-intensive, and Thailand’s planned IT load will substantially increase national electricity demand. The government, which has ratified the Paris Agreement, aims for around 30 percent renewables in the power mix by the early 2030s. The Asian Development Bank’s green loan for the GSA project, centred on energy efficiency and renewable sourcing, highlights financial-sector support for sustainable infrastructure.
Operators are pursuing decarbonisation through long-term power purchase agreements with solar farms, which are considered the most practical route toward net-zero operations. B.Grimm Power is in discussions to supply renewable energy to major data centres. Newer facilities are adopting efficiency technologies such as liquid and immersion cooling and low-PUE designs to manage high-density AI workloads in a tropical climate. As a late entrant to large-scale cloud infrastructure, Thailand can integrate such innovations from the outset rather than retrofit them later.
Water use poses an additional challenge. As cooling demand rises, operators are exploring closed-loop and air-cooled systems to reduce water consumption. Thailand may also look to Singapore’s model, which links data centre licensing to energy and water efficiency standards, as a framework for future regulation.
Potential Bottlenecks and Risks
Execution challenges remain, particularly in power and grid capacity. Each large campus can require tens of megawatts of stable load, and extending transmission infrastructure to new EEC sites can take several years. DC Byte has noted tightening capacity in Chonburi, underlining the need for early coordination with utilities and timely substation investments.
Thailand must also expand international bandwidth. Most traffic still routes through cables landing in the Gulf of Thailand or via Malaysia, so additional subsea routes and terrestrial links are essential to support export-grade cloud services. Delays in these deployments could temporarily limit utilisation, although ongoing investment by network and content providers is improving redundancy and latency.
Another risk is that operating advanced data centres requires skilled engineers and technicians, yet the domestic workforce remains limited. The government and industry are addressing this through training programmes launched by AWS, Microsoft and other partners, but competition for talent across ASEAN is high. In the short term, operators are expected to rely partly on expatriate specialists until a broader local talent base is developed.
Regulatory and competitive pressures could dampen activity. Thailand’s legal framework for data centre investment is favourable, but potential changes such as tighter data-sovereignty rules or higher electricity tariffs could affect operating margins. Regional competition is intensifying, with Johor and Jakarta expanding rapidly and Vietnam liberalising foreign-ownership rules. Maintaining cost competitiveness and political stability will be essential to sustain investor confidence.
Despite periodic political changes, Thailand has maintained a consistent pro-investment stance. Prime Minister Srettha Thavisin’s administration continues to prioritise digital infrastructure and artificial intelligence, reinforcing policy continuity and investor confidence.
Execution challenges remain, particularly in power and grid capacity. Each large campus can require tens of megawatts of stable load, and extending transmission infrastructure to new EEC sites can take several years. DC Byte has noted tightening capacity in Chonburi, underlining the need for early coordination with utilities and timely substation investments.
Thailand must also expand international bandwidth. Most traffic still routes through cables landing in the Gulf of Thailand or via Malaysia, so additional subsea routes and terrestrial links are essential to support export-grade cloud services. Delays in these deployments could temporarily limit utilisation, although ongoing investment by network and content providers is improving redundancy and latency.
Another risk is that operating advanced data centres requires skilled engineers and technicians, yet the domestic workforce remains limited. The government and industry are addressing this through training programmes launched by AWS, Microsoft and other partners, but competition for talent across ASEAN is high. In the short term, operators are expected to rely partly on expatriate specialists until a broader local talent base is developed.
Regulatory and competitive pressures could dampen activity. Thailand’s legal framework for data centre investment is favourable, but potential changes such as tighter data-sovereignty rules or higher electricity tariffs could affect operating margins. Regional competition is intensifying, with Johor and Jakarta expanding rapidly and Vietnam liberalising foreign-ownership rules. Maintaining cost competitiveness and political stability will be essential to sustain investor confidence.
Despite periodic political changes, Thailand has maintained a consistent pro-investment stance. Prime Minister Srettha Thavisin’s administration continues to prioritise digital infrastructure and artificial intelligence, reinforcing policy continuity and investor confidence.
Conclusion
Thailand’s data centre market is in the midst of becoming one of APAC’s cornerstone markets for digital infrastructure. The attraction of its geography, regulatory framework, cheap power and geopolitics make it hard for strategics and sponsors to not capture this unique opportunity and explains why the country has drawn unprecedented levels of interest across a broad investor spectrum. The case studies mentioned are just a select few in recent times and the healthy pipeline illustrates not only the scale and diversity of capital in the market but also the maturing sophistication of these deal structures. The coming years will test exactly how critical Thailand’s presence in this market is and how well its regulation and grid can keep up with the global AI revolution. From the current trajectory, there is one overwhelming narrative: Thailand stands at the crossroads of Southeast Asia’s digital future - aiming to become its next major technology hub.
Thailand’s data centre market is in the midst of becoming one of APAC’s cornerstone markets for digital infrastructure. The attraction of its geography, regulatory framework, cheap power and geopolitics make it hard for strategics and sponsors to not capture this unique opportunity and explains why the country has drawn unprecedented levels of interest across a broad investor spectrum. The case studies mentioned are just a select few in recent times and the healthy pipeline illustrates not only the scale and diversity of capital in the market but also the maturing sophistication of these deal structures. The coming years will test exactly how critical Thailand’s presence in this market is and how well its regulation and grid can keep up with the global AI revolution. From the current trajectory, there is one overwhelming narrative: Thailand stands at the crossroads of Southeast Asia’s digital future - aiming to become its next major technology hub.
By Angelo Passaro, Leonardo Rossini, Leo Shasha
SOURCES
- Global Infrastructure Partners
- Stonepeak
- Project Finance Institute
- True IDC
- Data Centre Dynamics
- APAC Outlook Mag
- Digital Edge DC
- Asian Development Bank
- DC Byte
- Krungsri Research
- Board of Investment (Thailand)
- Reuters
- McKinsey
- The Verge
- Bloomberg
- Project Finance International
- SCB Economic Intelligence Centre (EIC)
- Financial Times
- Channel NewsAsia
- World Bank
- Data centre Dynamics
- The Green Grid
- ITIF
- Thai Customs Department
- World Trade Organization(WTO) - ITA
- Bangkok Post
- Nikkei Asia