Thailand Emerges as Southeast Asia’s Fastest-Growing Data Center Hub

Jul 2025

Thailand’s data center industry is experiencing rapid growth, positioning the country as a leading hub for digital infrastructure in Southeast Asia. At the 2025 Siemens Data Center Conference in Bangkok, experts highlighted how demand for data storage and processing capacity is accelerating due to rising cloud adoption, artificial intelligence applications, and a surge in digital transactions.

According to Krungsri Research, Thailand’s data center market is projected to grow 7.5% to 8.5% annually between 2025 and 2027. In 2024, foreign direct investment in the sector exceeded USD 6.5 billion, led by Amazon Web Services, Google, Microsoft, and TikTok. The momentum has continued into 2025 with new investment pledges totaling over USD 2.6 billion in the first quarter alone. This surge reflects Thailand’s strategic push to become a regional digital and cloud service hub.

Large-scale data center developments are now the norm. Siemens reports that bid sizes have jumped from 12 to 20 megawatts to over 100 megawatts, driven by hyperscalers and AI workloads. These facilities require advanced energy planning and resilient infrastructure. In response, the Ministry of Energy has revised its Power Development Plan to prioritize renewable energy, grid modernization, and flexible procurement options for green electricity.

However, key challenges remain. High energy costs, limited access to clean power under the current 2,000 megawatt direct purchase quota, and rising construction costs are pressing issues. Industry leaders are calling for expanded clean energy policies and better long-term planning to support continued growth in the data center sector.

(Source: The Nation)

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