The research center of Kasikorn Bank Thailand has released a report on the data center industry, indicating that Thailand has shown a favorable growth rate. The growth rate for the period 2021-2023 is at 54%, with an anticipated annual investment growth rate of 31.2% CAGR.
Despite the relatively good growth, within ASEAN, Malaysia still maintains a higher growth rate. It is projected to be at 36.8% CAGR. Malaysia holds a competitive advantage with cheaper average electricity costs compared to Thailand and a network connectivity with underwater cable connections up to 20 lines.
The report highlights that Singapore provides data center services with an estimated energy capacity of about 780MW (143MW per million population), while Malaysia stands at approximately 164MW (4.9MW per million population) and Thailand at around 79MW (1.1MW per million population). Although Singapore ranks third in growth, its base is significantly higher.
In 2022, there were reports that the Singapore government started to limit the issuance of data center construction permits despite high demand and almost full utilization of the space.
TLDR: Thailand’s data center industry is experiencing strong growth with a 54% rate for 2021-2023, while Malaysia maintains a higher growth rate and better cost advantages. Singapore leads in energy capacity, but faces restrictions on data center expansion despite high demand.
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