Data Center refers to a location for servers, network communication devices, and storage systems. This business is recently gaining attention in Thailand, as KASIKORN’s Securities Analysis Department assessed that the signing of a Joint Development Agreement (JDA) between Gulf Energy Development Public Company Limited and Advance Info Service Public Company Limited with Singapore Telecommunications Limited (Singtel) in response to the rapidly growing digital infrastructure industry in Thailand and increasing demand from international markets will attract massive investment from abroad into Thailand.
At the same time, Bualuang Securities Research Department stated that the digital transformation which includes IoT, Big Data, E-Business, and others, all support demand for data center and cloud services. It is estimated that digital businesses will account for 25% of Thailand's GDP by 2027 and by 2024, the ASEAN data center market may be worth up to 5.4 billion US dollars, or about 1,780 billion baht. It is also indicated that Thailand could develop to become a regional data center to replace Singapore. As this business ecosystem become bigger, the businesses that will benefit from the growth of the data center include 1) Construction sector, building design service providers, and advanced engineering consultants, 2) Digital transformation consulting business especially those for SMEs, and 3) Software and application developers who benefit from the availability of more consumers. *
