Opening up new industry

Opening up new industry

Huawei has become the world leader in containerised cluster-data centres, such as this 13 sq km cloud data centre farm under construction at the Ulanqab Information Industry Base in Chahar, northern China. (Photo Huawei.com)
Huawei has become the world leader in containerised cluster-data centres, such as this 13 sq km cloud data centre farm under construction at the Ulanqab Information Industry Base in Chahar, northern China. (Photo Huawei.com)

The tentative decision by China's Huawei Technologies Co to build a small cloud data centre is a feather in the cap of Prime Minister Prayut Chan-o-cha and his Eastern Economic Corridor project. Huawei signed a memorandum of understanding (MoU) on Friday, with the government's lead man on technology, Deputy Prime Minister Prajin Juntong looking on. The agreement states that Huawei will allocate US$10 million, or 330 million baht, a sign that the plan is to build a relatively small data centre.

Still, assuming no technical or red tape hitches, it would be the first such centre in Thailand. As such -- and not to create any of that unnecessary bureaucracy -- there are questions that need to be answered. Data centres suck major amounts of resources, including electricity and water. Powering and cooling thousands of humming computer servers will almost certainly require new facilities to keep it running. Even a small data centre eats enough electricity to power a village, and massive amounts of fresh water must be pumped or converted via desalination -- also a power-hungry operation.

The other major drawback is that data centres do little for the local community. Highly trained specialists maintain the equipment, not to mention that Chinese firms are notorious for demanding that their own nationals take jobs at all industry levels. There will be very few positions for Rayong province residents, if any.

Huawei is familiar with Thailand, and has strived for years to make its name familiar. Thais are most familiar with the company's consumer products, including the budget-friendly smartphones. But Huawei and Thailand have a friendly history at the upper management levels.

In August, the government invited "international businesses such as Huawei" to invest in Digital Park, which is pushing the controversial Internet of Things (IoT) investment theme. Just last June, Huawei announced plans to sink $15 million to set up OpenLab Bangkok. That project aims to create a one-step support for companies seeking help and infrastructure. It already operates six such offices around the world.

So far as the data centre, Huawei is a reliable investor. Along with Inspur and Lenovo, Huawei rounds out the top three Chinese market leaders in hardware and software for data centres. It is less experienced in building and operating a centre but few doubt it can do so. Before the final green light, however, there are questions that must be answered.

First and foremost, the project will need to pass environmental tests. While cloud computing is generally thought of as a "clean and green" business, this is not necessarily so. The centre itself requires larger amounts of land that similar centres in other industries. As mentioned, the need for power and, especially, water should be examined. This project is a real chance for the Office of Environmental Policy and Planning (Onep) to show that it is truly serious about protecting the Thai ecology.

As planning begins, the government should press Huawei to power the data centre by using alternative energy. Solar-powered centres still are rare in the West, but those launched have been successful. A modern industry like cloud computing, powered completely by solar and other alternative energy would be not just an early-bird investor in the EEC but a true cutting-edge commitment to making Thailand 4.0 more than just another slogan.

The Ministry of Digital Economy and Society also will need to be firm about employment at the data centre. Huawei will undoubtedly insist on using Chinese to build, open and run the operation. However, Thailand must get seats at the tables. It must be clear to Huawei from the beginning that the major price of permission to operate is agreement to transfer technology at every level. It's a trade Huawei should welcome.

Editorial

Bangkok Post editorial column

These editorials represent Bangkok Post thoughts about current issues and situations.

Email : anchaleek@bangkokpost.co.th

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