Thailand has rapidly emerged as a desirable investment destination for international corporations considering the establishment of data centers. This attraction stems from its remarkable infrastructure, strategic geographical location, robust digital regulations, and substantial government incentives.
Thailand’s infrastructure is underpinned by a reliable power supply, swift internet connectivity, and expansive 5G coverage. This robust network fuels the digital economy and makes Thailand an ideal location for the data-intensive operations of data centers.
Located centrally within the South-East Asian region, Thailand serves as a key connecting hub, particularly for the CLMVT group inclusive of Cambodia, Laos, Myanmar, and Vietnam. This position grants data centers strategic access to a collective population of over 250 million, further enhanced by a high rate of internet penetration and an active digital community.
In addition to the favorable geographical and infrastructural aspects, Thailand’s stable political climate and negligible natural disaster risks offer an additional layer of security for data center operations. Beyond this security, the Thai government extends extensive support to such investments, manifesting as attractive incentives from the Board of Investment (BOI). These incentives include tax relaxations, land ownership rights, and visa facilitation. Simultaneously, the government’s ‘Cloud First Policy’ promotes the use of cloud technology, further encouraging international corporations to set up data centers in Thailand.
The benefits projected for Thailand from such investments are manifold. Beyond attracting substantial foreign investment, they are anticipated to generate tens of thousands of high-skilled employment opportunities. Furthermore, this development is expected to stimulate growth across numerous industry sectors, including manufacturing, technology, innovation, tourism, and e-commerce. Enhanced access to high-quality Cloud services is another notable advantage.
Several stocks stand poised to gain from the establishment of data centers in Thailand, primarily those with a digital business foundation, such as BE8, BBIK, INSET, and GULF. These companies are primed to leverage the digital transformation significantly, with GULF even expected to profit from electricity sales and a data center collaboration with Singtel and AIS.
Other sectors set to benefit include the electric power sector, represented by GULF, GPSC, BGRIM, and WHAUP, given their provision of the massive energy needed for data center operations. Moreover, companies like DELTA, KCE, HANA, and CCET, global leaders in the production of data center components, stand to gain from their establishment within Thailand’s borders.
Therefore, Thailand’s strategic allure lies in its strong infrastructure, central ASEAN location, and impactful government support, which collectively create a fertile landscape for the establishment and success of international data centers.
