The digital sector, and notably data centre development, continued to drive investment in Thailand, with applications for investment promotion skyrocketing 97% year-on-year to more than 431 billion baht in the first quarter of 2025, said the Board of Investment (BoI).
Domestic and foreign investors filed a total of 822 project applications during the January-March period, a 20% increase from the first quarter of 2024. As many as 618 of the applications involved foreign investors.
"Data for the first three months further confirms the trend seen last year when the data centres and digital services became for the first time the top ranked sector in terms of investment value," said Narit Therdsteerasukdi, secretary-general of the BoI.
The digital sector saw the value of applications soar over five times to 94.7 billion baht, from 17.4 billion baht a year earlier, boosted by a combined investment value of 94.2 billion baht in five data centre projects.
"This demonstrates the increased focus by both foreign and local companies on high tech investments in Thailand," said Mr Narit.
During the first quarter, the investment value in the digital sector was only surpassed by applications in the infrastructure sector, which included Bangkok Expressway and Metro PCL's 109.2-billion-baht investment in the construction of the 35.9-kilometre-long Orange Line.
The railway line will connect Bangkok's western and eastern suburbs, which will greatly facilitate travel within the city.
According to the BoI, Hong Kong-based companies led in terms of foreign direct investment (FDI) sources during the first quarter, with a combined investment value of more than 135 billion baht, accounting for 50% of all FDI pledges during that period, including 72.7 billion baht in the digital sector alone.
China was in second place with investments worth 47.3 billion baht, mainly in the metals, electronics and automotive industries, followed by Singapore, which invested 38.1 billion baht. Singaporean investors focused on projects in the electronics and electrical (E&E) products and digital sectors.
Japan ranked fourth with investments worth 25.1 billion baht, mainly in the E&E and automotive sectors. Taiwanese investors were in fifth place, with investments worth 4.76 billion baht, mainly in the E&E and auto parts sectors.