Thailand Data Center and Cloud Services Market Demand — Ken Research

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    1. The rapid surge in data demand, intensifying digitalization, rising data traffic and investment promotion through government incentives are driving the Thailand Data Center Market.

    Thailand Cloud Services Market

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    The digitalization across the country driven by COVID-19, availability of tax incentives, deployment of 5G services and improved connectivity with other Asian countries lead the market expansion in recent years. In addition, with the pandemic shift, regional demands in data centers are growing exponentially, particularly with the rise of smart city trends, e-commerce, cashless transactions, the adoption of cloud technology, and the need for faster internet.

    2. Suitable Geographic Location, Networking, Sustainable approach and High-density rack demands are driving the Thailand Data Center Market.

    Thailand Cloud Services Market

    Thailand has geo-political balance and suitable geography that can accommodate various routes of submarine cable. With huge investments in EEC corridor, more number of Data Centers are expected with rising end-use industries development.

    In addition to this Thailand has the world’s second fastest average download speed for fixed broadband access. There are currently 10 international internet gateways, 11 internet exchange points, and more than 200 Internet Service Providers, which will enable Thailand to be the Data Center and Cloud Services hub in ASEAN region in near future. Moreover, many industries are gradually ‘going green’; including green finance, green transportation powered by EVs and green hotel standards. With Supernap, first tier IV data center with its own solar power renewable energy, more data centers are expected to adopt the trend of utilizing non-conventional source of energy in near future.

    3. Emerging technologies such as containerization, virtualization, and edge computing are becoming more mainstream and driving cloud spending in Thailand.

    Thailand Cloud Services Market3

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    Higher online media consumption, installation of IoT devices, sensors in manufacturing plants will increase the demand for data storage as well as the burgeoning demand from SMEs for cloud solutions. Moreover, Internet giant like Google and AWS have recently declared new plans to start their cloud region with forthcoming Data Centers in Thailand. In addition to this, Thailand's digital economy is expected to reach USD 57.0 Bn by 2025 while digital transformation, if leveraged fully, could create up to USD 79.5 Bn in annual economic value in Thailand by 2030-the equivalent of 16.0% of the total Thailand’s GDP in 2020. In the same way, Local Data Centers are also emphasizing on their operational models to provide cloud services in recent years in Thailand such as AIS Business Cloud, NT-IRIS Cloud, True IDC Cloud and UIH-HM Cloud.

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    Thailand Data Center and Cloud Services Market

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