The SET-listed Internet Thailand (INET) earmarked 1 billion baht for the construction of its third data centre outside Bangkok next year to capitalise on increasing enterprise demand for multi-site facilities.
The information and communications technology (ICT) infrastructure service provider vowed to make its third facility the country's largest data centre. No further details were disclosed.
A data centre is a facility used to house computer systems and associated ICT components such as telecoms and storage systems.
Wanchai Vach-shewadumrong, deputy managing director of Internet Thailand, said the company plans to spend 100 million baht this year, increasing the capacity of its IT resources to accommodate skyrocketing adoption of cloud-based IT services.
"We aim to be a leader in local cloud-based IT service," he said.
Inet spent 600 million baht the past three years on building its two data centres supporting cloud services with a combined 3,000 square metres utilisation.
The company used storage and data management technology and architecture from NetApp, a leading storage firm.
The company's data centres obtained ISO/IEC 2000 approval for cloud computing services, the first such company in Thailand.
Mr Wanchai said cloud IT services can save up to 60% on IT operating costs, which will drive adoption in Thailand during this economic swoon, reducing upfront IT investment.
Inet expects cloud-based services to contribute half of its total revenue this year, up from 30% last year.
The remaining revenue is expected to come from data centres and internet services.
The company is looking to join with CTH, a leading cable operator, to provide home fibre service, the next generation of broadband internet access.
Mr Wanchai said cloud service is projected to grow company revenue by 30% this year, up from 378 million baht and 25% growth in 2013.
Cloud service also provides higher margins at 30% compared to only 7-8% for internet service.
Mr Wanchai acknowledged the prolonged political stalemate has hurt the government revenue stream, which is expected to contribute 25% of total revenue this year, down from 30% last year.
The company is shifting its focus to private large and medium-sized companies to offset the decline, he added.
Frost & Sullivan, a global research firm, forecast Thailand's data centre industry looks set to grow by 15% this year, down from 21% growth and revenue of 1.7 billion baht in 2013.
Shares of INET closed yesterday on the SET at 3.88, down six satang, in trade worth 30.9 million baht.