Thailand's data centre co-location market has a projected value of US$652 million by 2029, driven by demand for greater processing power to handle artificial intelligence (AI) workloads, says ST Telemedia Global Data Centres (STT GDC).
A co-location data centre refers to a facility that rents out space for organisations to host their servers and other IT hardware.
Thailand has the potential to become a strategic location for data centres, alongside Singapore and Malaysia, if it can reduce electricity costs, said Budsarin Pradityont, country head of Thailand for STT GDC.
The company is considering expanding data centre services to cover areas outside Bangkok to serve customers, she said.
STT GDC is showcasing its advanced cooling technologies to support Thailand's first Nvidia DGX-ready data centre.
The rising demand for cloud computing and accelerated computing, particularly AI workloads, is driving an increase in data centre investments and built-out capacity, said Ms Budsarin.
Thailand's co-location data centre market is expected to generate $268 million this year before rising to $652 million in 2029, a compound annual growth rate (CAGR) of 27.1% during the five-year period.
The market for co-location services for hyperscale data centres will grow from $65 million this year to $208 million in 2029, a CAGR of 41.5%, according to STT GDC.
The market for co-location services for the enterprise sector will post a 22.7% CAGR from $202 million to $443 million over the same period, noted the company.
The built-out capacity of data centres in Thailand last year was 56.3 megawatts, and is expected to grow to 249MW by 2029.
STT GDC cited a study that found Thailand is considered an attractive destination for data centre investment in Southeast Asia, along with Singapore and Malaysia.
Ms Budsarin said Thailand can make itself more attractive to data centre operators and possibly become an AI hub by reducing electricity prices, if possible to 2 baht per unit.
Thailand should expedite the planned implementation of direct power purchase agreements, allowing businesses to buy renewable energy directly from power producers, she said.
Data centres are the backbone of the digital society, powering everything from content streaming and cloud computing to AI workloads, said Ms Budsarin.
As the volume of global data creation continues to multiply, driven by AI, mobile internet and cloud adoption, data centres are under pressure to deliver higher performance while managing rapidly growing heat loads and energy demands.
To support the energy usage of AI, the company already offers direct-to-chip liquid cooling at its flagship STT Bangkok 1 data centre facility on Ramkhamhaeng Road.
This underscores STT GDC's ongoing commitment to sustainable digital infrastructure and continued innovation, she said.
Tiwa Petcharat, head of operations and technical account management at STT GDC, said this new liquid cooling technology enables AI-ready data centres designed and equipped to accommodate the latest graphics processing unit (GPU) chips.
Direct-to-chip liquid cooling involves circulating coolant directly over the computer components -- the central processing unit and GPUs -- via cold plates and a network of distribution pipes.
This method removes heat at the source, allowing the system to achieve up to 30% greater energy efficiency compared with traditional air cooling. This method also advances the company's goal of achieving carbon neutrality by 2030.
Ms Budsarin said the unfavourable economy has yet to affect its business.
The company is investing $240 million in the construction of STT Bangkok 2, its third data centre facility in Thailand.