Data center capacity in Thailand could potentially triple, driven by escalating demand for Artificial Intelligence.
Thailand Becomes a Hub for Global Tech Giants' AI Infrastructure
Thailand is witnessing a surge in investments from major global tech companies, including Google, Amazon, Microsoft, and Nvidia, as they pour billions into AI infrastructure. This trend is not limited to Thailand, as these tech giants are investing similarly across Southeast Asia.
According to the Thai Data Center Association, the capacity of Thailand's data centers is expected to increase from 350MW in 2024 to about 1GW in 2027. This expansion is driven by the nation's efforts to boost its high-tech industries and is supported by Thailand's strategic location, abundant land, reliable power, and proactive government support for innovation.
In the first half of the year, Thailand's Board of Investments approved investment applications worth ฿322 billion (US$9.9 billion) for 36 tech projects, primarily data centers. Notable investments include Google's $1 billion facility in Chonburi, Amazon Web Services' (AWS) $5 billion investment in Thailand, Microsoft launching its first Thailand cloud region, and Bytedance committing $8.8 billion in the region.
These investments are driving the transition towards hyperscale-ready campuses and large, multi-building data center projects, moving away from smaller, retail-style facilities. Bangkok has become Southeast Asia’s second-largest data center market, with total IT capacity surpassing 2.5 GW as of early 2025, experiencing a five-year CAGR around 40% for pipeline capacity.
However, the growth in Thailand's data center sector is not without challenges. Substantial upfront infrastructure costs and increasing energy-efficiency regulations pose challenges for smaller players. Additionally, the Thai Data Center Association is seeking clarity on the US plan to restrict shipments of AI chips and its potential impact on Thailand's data centers.
Thailand aims to catch up to countries like Malaysia and Singapore, regional leaders in data center and cloud computing services. With a compound annual growth rate (CAGR) between about 13.1% and 24.88% from 2025 to 2030, the market is expected to grow robustly, fueled by accelerating digital transformation. By 2030, the market size is projected to exceed USD 1.5 billion from USD 652 million in 2023, underscoring the robust future growth of Thailand's data center sector.
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