01 /MARKET SIZE
Expected to reach a value of 1,388m USD by 2028 from 768m USD in 2022
The Thailand data center market size is expected to reach a value of $1,338 million by 2028 from $764 million in 2022, growing at a CAGR of 9.79% from 2022 to 2028.
In 2022, Bangkok recorded a market share of 5MW primarily due to the deployment of public cloud, while the total annual market share in 2021 was 14.32MW, almost a 900% increase compared to the market share in 2020. This underscores the current market growth trend where hyper-scale cloud providers are concentrating in Thailand. The total current supply of data centers in Thailand has seen a slight increase to 147MW but is still significantly lagging behind demand.
— By 2028, it is anticipated that the data center market in Thailand will double to a live capacity of 100MW, considering the interest in hyperscale cloud in the region. Moreover, with an increasing emphasis on cost efficiency, flexibility, and reliability, the transition from these company-owned servers within office buildings to public cloud facilities is expected to become more evident.
02 /Market Growth
Thailand colocation Data Center revenue is expected to grow at a CAGR of around 15%
The data center industry revenue in Thailand is projected to grow at a CAGR of approximately 25% during the period of 2019-2028. The country hosts over 48 million internet users, reflecting a growing dependency on digital infrastructure for its rapidly expanding society and economy. This implies that various cloud providers from China and the United States are gearing up to offer cloud services in the market.
— Knight Frank’s latest research report, By 2025, the data centre market in Thailand is forecast to double in size to 100 MW of live capacity, given the hyper-scale Cloud interest in the region.
03 /INCENTIVES
Various government incentive packages
Thailand's Board of Investment (BOI) and Goverment provides attractive incentives for investors, including import duty exemptions and potential 8-year corporate income tax breaks for data centers and cloud services. Several key government agencies bolster Thailand’s digital ecosystem.
— The Digital Economy Promotion Agency promotes digital industry growth via various funds.
↳ The Digital Economy Promotion Agency promotes digital industry growth via various funds.
↳ NSTDA enhances national R&D across multiple sectors.
↳ NECTEC fosters electronics and computer technology research, bridging research and industry.
