Thailand Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Thailand Data Center Market Analysis

The Thailand Data Center Market size is estimated at 0.51 thousand MW in 2025, and is expected to reach 1.1 thousand MW by 2030, growing at a CAGR of 16.48%. Further, the market is expected to generate colocation revenue of USD 509.3 Million in 2025 and is projected to reach USD 1,204.9 Million by 2030, growing at a CAGR of 18.79% during the forecast period (2025-2030).

Thailand's data center market landscape is undergoing significant transformation driven by robust digital infrastructure development and supportive government policies. The Thai cabinet's landmark decision in September 2022 to grant data centers VAT exemption has created a more favorable investment environment for both local and international operators. This regulatory framework has been particularly attractive for hyperscale facilities, with several major providers announcing expansion plans in the region. The country's strategic position within ASEAN markets has further enhanced its appeal as a Thailand data center hub, particularly for connecting investors to emerging opportunities in Cambodia, Laos, Myanmar, Malaysia, and southern China.

The market is experiencing substantial growth in the data center market in enterprise adoption, particularly among small and medium-sized businesses. As of 2021, Thailand hosted approximately 3.2 million MSMEs, representing a significant potential customer base for data center infrastructure services. The enterprise landscape is particularly vibrant in Bangkok, where over 1,000 startups were operational as of 2022, with 80-90% concentrated in the capital city. This concentration of digital businesses has created a strong demand for reliable Bangkok data centers, particularly in the areas of cloud services and digital content delivery.

The e-commerce sector has emerged as a major driver of data center market demand, with the market value reaching THB 770 billion in 2022 and projected to exceed THB 870 billion in 2023. This growth has been accompanied by increased investment in digital infrastructure, with Thailand seeing private funding of USD 300 million in the first half of 2022 alone. The rise of live commerce and cross-border e-commerce has created new requirements for data processing and storage capabilities, pushing providers to enhance their service offerings and data center capacity.

The industry is witnessing a strong trend toward operational efficiency and sustainability. Data center facilities in Thailand maintained an average occupancy rate of 85% in 2022, indicating healthy utilization of existing infrastructure. Operators are increasingly focusing on environmental sustainability, with several facilities implementing advanced cooling systems and energy-efficient technologies. The government's commitment to increasing renewable energy usage in power generation from 20% in 2021 to 50% by 2050 has prompted data center operators to align their operations with these environmental goals, leading to investments in green technologies and sustainable practices. These insights into data centers highlight the strategic direction and future potential of the Thailand data center market.

Thailand Data Center Market Trends

Increasing number of digital consumers boost the data center demand in country

• The total number of smartphone users in the country was 57 million in 2022, which is expected to increase and register a CAGR of 0.83% during the forecast period to reach 60.2 million by 2029.
• Thailand shows a strong level of digital readiness with a high penetration rate for internet usage, social media engagement, mobile connections, online shopping, and digital payments, according to the "Digital 2022: Thailand." An increase in domestic e-commerce merchants also promotes sales growth. Cross-border spending is half (50%) of Thailand's total e-commerce spend. The Thai mobile commerce market is already the dominant e-commerce sales channel in the country, used for 52% of all online shopping transactions and worth USD 13.6 billion. This makes the country one of the regional forerunners for mobile commerce.
• Thailand was expected to end 2022 with a 5G coverage of over 85% of the country's population. With newer partnerships and development, the usage of 5G in smartphones is increasing. For instance, in July 2022, Ericsson and the King Mongkut University of Technology Thonburi (KMUTT) announced a partnership to support Thai students in building 5G ICT skills for the future. As the pioneer in launching 5G commercial service in Southeast Asia, Thailand is well positioned to develop its ambitious Industry 4.0 wireless ecosystem to enhance the consumer mobile experience and support the digitization of its manufacturing, energy, and healthcare industries.

The increasing investments for the expansion of 5G network by Operators drives the growth of the market

• Thailand has one of the highest penetration rates of 5G in the ASEAN region, with 9.2%, only behind Singapore, with 13.9%. Thailand's 5G subscriptions are expected to reach 70 million by 2027, or 73% of the total subscriptions in mobile services, according to Digital Economy and Society (DES).
• Thailand was one of the first markets to launch 5G in the Asia-Pacific region, with AIS and TrueMove H both launching commercial 5G services during Q1 2020. Driving 5G adoption in the market is one of the primary objectives for AIS and TrueMove H, and each had targeted 2 million 5G connections by the end of 2021. In 2021, users saw the fastest average overall and 5G download speeds on AIS' network. The operator won overall Download Speed Experience with a score of 19.4 Mbps, 1.7 Mbps (9.7%) ahead of second-placed TrueMove H. AIS also won the 5G Download Speed Experience award, clocking in at 180.3 Mbps and commanding a major lead of 57.4 Mbps (46.7%) over the runner-up TrueMove H. DTAC lagged behind its rivals.
• OpenGov Asia recently reported that the Thai Ministry of Digital Economy and Society (MDES), Digital Economy Promotion Agency (DEPA), and a Chinese multinational technology company announced the launch of the Thailand 5G Ecosystem Innovation Center (5G EIC) in Bangkok. This launch aims to accelerate 5G innovation through ecosystem collaboration and boost the digital economy. The rise of data centers in the nation is facilitated by the rising mobile internet speeds, which directly impacts data traffic and raises the demand for more racks.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Data Center Size

Mega Data Center Segment in Thailand Data Center Market

The mega data center size segment dominates the Thailand data center market, commanding approximately 35% of the total market share in 2024, with an IT load capacity of 70 MW. This significant market position is primarily driven by the increasing demand for high-bandwidth data center networking infrastructure and the rapid adoption of 5G technology across Thailand. The segment's dominance is further strengthened by major players like SUPERNAP Thailand, which operates a Tier 4 certified mega data center in Chonburi with more than 60,000 racks. The segment is also witnessing substantial growth due to industrial digitalization initiatives and the increasing demand for hyperscale facilities. The construction of new mega data centers by industry leaders such as SUPERNAP Thailand and ST Telemedia GDC, particularly in strategic locations like Chonburi and Bangkok, further solidifies this segment's market leadership. These facilities are being developed with Tier 3 and Tier 4 certifications, demonstrating the industry's commitment to maintaining high standards of reliability and performance.

Growth Trajectory of Mega Data Centers in Thailand

The mega data center segment is experiencing remarkable growth, projected to expand at approximately 35% annually from 2024 to 2029. This exceptional growth rate is supported by the increasing deployment of 5G technology and the rising consumption of rich media content across Thailand. The segment is expected to witness the addition of around 100 MW of IT load capacity during the forecast period, driven by significant investments in new facilities. The growth is further catalyzed by Thailand's strategic position as a digital hub in Southeast Asia and the government's supportive policies, including tax incentives for data center investments. The segment's expansion is also fueled by the increasing adoption of cloud services, digital transformation initiatives across various industries, and the growing demand for high-density computing capabilities. These factors, combined with the development of new hyperscale facilities, are positioning mega data centers as the primary driver of market growth in Thailand's data center industry.

Remaining Segments in Data Center Size Market

The Thailand data center market encompasses several other significant segments, including massive, medium, large, and small data centers, each serving distinct market needs. The massive data center segment caters to large-scale enterprise requirements, with facilities primarily concentrated in Bangkok. Medium-sized data centers play a crucial role in supporting regional businesses and government operations, while large data centers focus on serving specific industry verticals with specialized requirements. The small data center segment, though smaller in capacity, serves an important role in supporting local businesses and educational institutions. These segments collectively contribute to a diverse and robust data center ecosystem in Thailand, offering various options for different business scales and requirements.

Segment Analysis: Tier Type

Tier 3 Segment in Thailand Data Center Market

Tier 3 data centers dominate the Thailand data center market, commanding approximately 58% of the total market share in 2024, with an IT load capacity of 115.08 MW. The significant market share of Tier 3 facilities can be attributed to their optimal balance between reliability and cost-effectiveness, making them particularly attractive for enterprise-level operations. These facilities offer N+1 redundancy, allowing for maintenance without system shutdown, and typically maintain 99.982% uptime. Currently, there are 23 data centers in Thailand with Tier 3 certification, with 61% of these facilities located in Bangkok and the remaining distributed across other regions. Major technology companies and colocation providers are actively expanding their Tier 3 infrastructure, with companies like ST Telemedia GDC, Bridge Data Centers, and Telehouse (KDDI Corporation) constructing new facilities in Bangkok.

Tier 4 Segment in Thailand Data Center Market

The Tier 4 segment is emerging as the fastest-growing category in Thailand's data center market, projected to grow at approximately 14% CAGR from 2024 to 2029. This growth trajectory is driven by increasing demand for mission-critical operations requiring the highest levels of reliability and redundancy. The segment's expansion is further supported by significant investments from major industry players, with SUPERNAP Thailand and One Asia Network leading the construction of new Tier 4 facilities in Chonburi and Bangkok. These facilities are being designed with advanced fault-tolerant features, 2N+1 redundancy, and multiple independent distribution paths, catering to organizations requiring zero-downtime environments. The segment's growth is also bolstered by Thailand's strategic position as a digital hub in Southeast Asia and the government's supportive policies toward high-reliability data center infrastructure.

Remaining Segments in Tier Type

The Tier 1 and Tier 2 segments represent the basic level of data center infrastructure in Thailand's market. These facilities provide fundamental infrastructure requirements with basic site infrastructure guarantees and limited redundancy. While these tiers offer more cost-effective solutions for less critical operations, they are primarily utilized by smaller organizations or for non-critical workloads. The segment maintains its relevance in specific use cases, particularly in edge computing applications and local data processing needs. Several small data centers with Tier 1 & 2 certifications are under construction in locations such as Chiang Mai, Phuket, and Khon Kaen, indicating continued demand for these basic infrastructure solutions in regional markets.

Segment Analysis: Absorption

Utilized Segment in Thailand Data Center Market

The utilized segment dominates the Thailand data center market, accounting for approximately 86% of the total IT load capacity in 2024. This segment's prominence is driven by several factors, including the rapid adoption of cloud services, with cloud spending expected to reach significant levels as Thai businesses accelerate their digital transformation initiatives. The segment is also witnessing robust growth with an expected CAGR of around 15% from 2024 to 2029, making it the fastest-growing segment in the market. This growth is primarily fueled by increasing demand from various sectors, including cloud service providers, telecom operators, and BFSI institutions. The segment's strong performance is further supported by Thailand's ambitious digital economy goals, which aim to contribute 25% to the country's GDP by 2027, driven by the growth of e-commerce and enabled by high internet and mobile penetration.

Non-Utilized Segment in Thailand Data Center Market

The non-utilized segment represents the available capacity in Thailand's data center infrastructure that remains unoccupied or reserved for future expansion. This segment plays a crucial role in the market as it provides the necessary buffer capacity for rapid scaling and future growth opportunities. The presence of non-utilized capacity is essential for data center operators to maintain operational flexibility and accommodate sudden spikes in demand. Data center providers strategically maintain this spare capacity to ensure they can respond quickly to market opportunities and customer requirements. The segment is particularly important in emerging digital hubs like Thailand, where demand patterns can be volatile and the ability to scale quickly is a competitive advantage.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.