Bangkok: Thailand has approved a series of ambitious data centre projects valued at US$3.1 billion, marking a major step in the country’s push to strengthen its digital infrastructure and attract global tech investment. The approvals, announced by Thailand’s Board of Investment (BOI), cover four major projects and signal Bangkok’s intent to become a leading digital hub in Southeast Asia.
The approved projects include an 84-megawatt (MW) facility by Dubai-based DAMAC Digital, valued at approximately 26.7 billion baht (US$740 million), and a hyperscale data centre with 200 MW capacity, worth 54.9 billion baht (US$1.5 billion). These projects are designed to accommodate high-volume cloud computing, AI processing, and other data-intensive services, reflecting Thailand’s ambition to support the region’s growing digital economy.
In addition to the new approvals, the BOI has implemented measures to accelerate previously approved projects that were delayed, covering investments of around US$9.2 billion. To ease project execution, six special licenses have been issued, granting streamlined access to industrial land, power supply, visas, and work permits for foreign personnel.
Thailand’s move is more than an economic development measure; it is a strategic initiative aimed at positioning the country as a digital hub in Southeast Asia. By enabling large-scale data centre development, the government aims to attract global cloud providers and hyperscale operators, boosting the country’s competitiveness in a region that includes Singapore, Malaysia, and Vietnam.
BOI officials emphasized that the investments will create high-skilled employment opportunities, from technical maintenance and IT services to construction and facility management. “These projects will strengthen investor confidence, contribute to employment, and promote broader economic development,” a BOI spokesperson said.
Recognizing the challenges of building large data centres, Thailand has taken proactive steps to address potential bottlenecks. The issuance of special licenses ensures smoother access to power, land, and skilled labor, which are critical factors in attracting international investors. These measures demonstrate a government strategy that balances rapid development with investor convenience.
Despite the approvals, Thailand faces several hurdles. Large data centres demand significant energy, requiring stable and sustainable electricity supplies. The environmental impact of such facilities, including energy consumption and cooling requirements, must be carefully managed. Additionally, global macroeconomic conditions, such as inflation and supply chain pressures, could influence project timelines and costs.
Land acquisition, community concerns, and regulatory consistency will also play a role in the successful implementation of these projects. Experts note that long-term investor confidence will depend on Thailand’s ability to maintain a clear regulatory framework, competitive energy pricing, and robust digital connectivity.
The approved projects mark a transformative moment for Thailand’s digital economy. If executed efficiently, they could position the country as a regional hub for cloud services, AI, and edge computing, while fostering high-skilled employment and ancillary service industries. The government’s supportive policies, combined with private sector investment, are expected to accelerate Thailand’s digital transformation and enhance its global competitiveness.
For investors and regional observers, Thailand’s commitment of US$3.1 billion in data centre projects signals a clear intent to embrace the digital future. The coming years will reveal whether these plans translate into tangible economic and technological gains for the country.