GDS International, a renowned high-performance data center developer and operator in Asia, has publicized its debut in the Thai market. The company has committed to investing up to USD 1 billion over the next five years to erect a hyperscale data center park in Chonburi province, located southeast of Bangkok. This strategic move signifies GDS International’s drive to expand its array of data centers, playing a pivotal role in powering Asia’s digital economy.
The announcement was formally disclosed during a meeting at Government House in Bangkok with Thai Prime Minister Paetongtarn Shinawatra. GDS International emphasized its dedication to contributing significantly to Thailand’s digital evolution.
Prime Minister Paetongtarn Shinawatra commended the investment as a testament to the confidence investors have in Thailand’s burgeoning digital landscape, positioning the country as a central hub for cloud infrastructure and AI technology in the region. She highlighted that GDS International’s arrival epitomizes Thailand’s allure for esteemed digital investments, setting the stage for innovation and growth within ASEAN’s digital sphere. The Prime Minister assured full government backing and expressed eagerness for GDS International’s involvement in propelling Thailand’s digital advancement.
Thailand’s governmental initiatives aimed at digital transformation are geared towards positioning the nation as a pivotal hub for cutting-edge technology and digital infrastructure. GDS International’s investment aligns seamlessly with these objectives, laying the groundwork to expedite Thailand’s digital economy and fortify its prominence within ASEAN.
Following this announcement, GDS International cemented its strategies by entering into a comprehensive partnership agreement with AMATA Corporation Public Company Limited (SET: AMATA), a premier industrial real estate developer and operator in Southeast Asia. The agreement encompasses land procurement at the AMATA City Chonburi Industrial Estate and access to renewable energy resources such as floating solar power.
According to CGS International Securities (CGSI), GDS International has acquired 72 rai of land at AMATA City Chonburi for the development of the first phase of their data center project.
Meanwhile, AMATA has not officially clarified whether the 72 rai acquisition will be part of the presales for 3Q24 or 4Q24. The analyst includes data center presales in the full-year 2024 presales forecast, totaling 2,500 rai, without anticipating any earnings upside and maintains an ‘Add’ rating for AMATA, setting a target price of THB 33 per share.
