KKP: Thailand Emerging as ASEAN’s Data Centre Hub

KKP Securities Public Company Limited (KKPS) has revealed that, according to discussions with the global digital infrastructure research firm DCByte, Thailand is rapidly becoming one of the key data centre hubs in Southeast Asia. This shift is largely driven by the relocation of major hyperscaler providers from Singapore and Johor, Malaysia, to invest in Thailand in significantly growing numbers.

Currently, Thailand has approximately 4.5–4.6 gigawatts of data centre capacity, while Malaysia’s market stands at about 8–9 gigawatts (with Johor alone accounting for more than 5 gigawatts). Singapore, by comparison, has a smaller market of around 2 gigawatts. This reflects Thailand's rise as the "next destination" for data centre expansion in the region.

Thailand’s Strengths Over Neighbours

While Singapore has restricted the growth of new capacity, and Johor faces energy and resource limitations, global operators are increasingly seeking new investment locations that are better equipped. Thailand stands out in several ways:

• Strong energy security and a more robust infrastructure system.
• Flexible permitting processes.
• A lower population density, making it ideal for large-scale data centre operations.

Other regional markets face challenges: the Philippines is at risk from natural disasters, Indonesia suffers from high infrastructure costs, and Vietnam has complex regulations. As such, Thailand offers a "balanced market between potential and practical feasibility," although further development is needed in areas such as industry standards, transparency, and skilled human resources.

Strategic Locations: Bangkok and the EEC

Data centre investments in Thailand are beginning to spread from Bangkok to nearby areas such as Pathum Thani, Samut Prakan, and Chonburi, as well as within the Eastern Economic Corridor (EEC) region, covering Chachoengsao, Chonburi, and Rayong. These areas have become key hubs for large-scale projects (from 100 megawatts upwards) focused on AI and cloud computing.

• Bangkok is suited for smaller data centres, serving cloud services, banking, and high-speed online content.
• EEC focuses on large projects that require high energy consumption and have potential for future technologies.

The government is also prioritising the allocation of energy for viable projects and is preparing to launch a direct electricity trading system to increase flexibility.

The Shift to Hyperscalers

Thailand’s data centre market is transitioning from a colocation model (renting server space) to direct investments by global hyperscalers, which now account for over 80% of total demand.

Western Groups:

• Amazon Web Services (AWS) is building its own data centre in Thailand.
• Google has purchased land and is preparing to start construction.
• Microsoft has shifted its plan to rent space in the short term to begin operations.

Chinese Groups:

• ByteDance is the largest user.
• Alibaba and Tencent are expanding their services through colocation partners in Thailand.

US Chip Export Restrictions

Although the US government is considering new regulations to control the export of advanced processing chips (GPUs) to prevent their transfer to China, which could require Thailand to obtain additional licenses for chip imports, the impact is expected to be technical rather than structural. Most investors remain confident that the permitting process can be managed effectively and will not hinder Thailand’s long-term investment outlook for AI and data centres.

KKP Views Data Centres as Key Infrastructure for the Digital Economy

KKP believes that data centre investments will be a crucial part of the new economy, driving growth across the technology, energy, and real estate sectors simultaneously.

"Data centres are the backbone of the future digital economy. The fact that Thailand is seen as a new destination for global hyperscalers not only reflects its technological and energy readiness but also demonstrates confidence in the long-term potential of the country," said KKP.