Why data centre operators are flocking to Thailand

Is Thailand the new Johor for data centres? This question has surely crossed the minds of more than one person at the w.media pre-event networking this evening.

When I first landed in Thailand in 2012 to meet data centre operators to write a commissioned report, the landscape was completely different. Let's talk about what has happened since.

A glimpse of hypergrowth

Let's start with what's reported. As Jan Yong wrote yesterday, the Thailand Board of Investment (BOI) this week approved the following investments: a 12MW data centre by Telehouse (KDDI), an 80MW data centre by Vistas (ZDATA), an 84MW data centre by NextGen (DAMAC), and a 200MW data centre by Zenith.

That's 376MW of capacity approved in a single week. Note that this is merely the latest round of data centre investments - there were several other such announcements this year and last year.

Thailand already hosts major cloud operators from both East and West, some of which have previously announced plans for massive data centres. After years of middling growth, Thailand's recent rapid expansion is drawing comparisons to Johor's economic boom, with signs of similar hypergrowth emerging.

Conversations in the room

What are actual data centre professionals and insiders saying? Without mentioning names, here are some snippets from tonight's conversations.

I spoke with at least one operator who told me they are building a 300MW data centre. No, this isn't Google, which has committed US$1 billion for a campus in Chonburi. This is another player entirely.

An employee at a professional services company talked about setting up a Thai office to react faster to the many new opportunities in Thailand. When firms start opening local offices, it signals they expect sustained demand.

And the sheer presence of so many equipment suppliers and consultants in the room is itself telling. These are the people who supply cooling systems, power infrastructure, and specialised services.

A buzz in the air

But if there is one thing that struck me, it was the mix of people in the room, which was incredibly diverse. There were local Thai operators alongside international players, established veterans mixing with newer entrants.

And of course, there were also many, many familiar faces too. The kind of people who were in Johor a few years ago when that market was taking off.

What might the next few years bring? I have some thoughts. I'll share more tomorrow after I have the chance to speak to more people.