Thai Times

Covering the Thai Renaissance
Thursday, May 22, 2025

Thailand’s Data Centre Services Market Forecast to Grow Eight Percent in 2025

Growth driven by rising demand for AI and data storage, led by finance, retail, and healthcare sectors
Thailand’s data centre services market is projected to grow by eight percent in 2025, reaching an estimated value of twelve point seven billion baht.

This expansion is attributed to increasing demand for data storage and processing power, particularly to support artificial intelligence (AI) adoption across multiple sectors.

According to market analysis, the data centre services segment is expected to account for forty-three point three percent of the overall data centre market in Thailand this year.

The remaining share is attributed to companies investing in their own infrastructure.

The finance, wholesale and retail, and healthcare sectors collectively account for seventy-two percent of the total revenue in the data centre services industry.

The financial sector comprises twenty-seven percent of the service-based revenue, driven by the rising volume of digital transactions through systems such as PromptPay and e-wallets.

The use of AI technologies for identity verification, including facial recognition, has further increased the sector's reliance on data centres.

Wholesale and retail sectors contribute twenty-five percent, with AI applications in product recommendation systems driving demand.

Healthcare represents twenty percent, with growth linked to the need for secure storage of patient data and interactions generated through AI-based diagnosis tools and chatbots.

Thailand’s data centre industry has experienced consistent growth, recording an average annual revenue growth rate of twelve point six percent over the past five years.

This trend was initially bolstered by the shift to remote work during the COVID-19 pandemic.

Approximately ninety-four percent of demand for data storage services in Thailand comes from private sector enterprises.

Businesses are increasingly opting for third-party services over building in-house infrastructure, citing cost efficiencies and access to integrated AI-powered analytics solutions.

As of 2024, seventeen point eight percent of Thai organisations had adopted AI technologies, while over seventy-three percent had plans to adopt such technologies in the future.

Risks to the industry include the anticipated implementation of the Climate Change Act, which may require data centre operators to transition to cleaner energy sources due to their high electricity consumption.

Large-scale data centres are noted to consume electricity equivalent to hundreds of thousands of households annually, with significant implications for carbon emissions.

Regional competition is also intensifying, as countries like Malaysia and Singapore expand their data centre service offerings in Southeast Asia.

Several regional providers are expected to complete new facilities in Thailand within the next few years.

Additionally, a shortage of advanced digital professionals presents a challenge.

To address this, multinational investors in Thailand’s data centre market have launched training programmes aimed at developing local digital talent to meet the sector’s growing demands.
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