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Two Japan-Based Data Center Providers Expand Into Thailand

Japan-based data centre providers Telehouse and NTT are pumping US$164 million (5.5 billion baht) into Thailand, constructing and expanding their data centres, leveraging the rapid digital transformation and cloud computing boom.

Recently, Telehouse inaugurated its first Thailand-based data centre following a $74 million investment.

On the other hand, NTT channelled 3 billion baht into the creation of its latest and most extensive Thai data centre through its subsidiary, NTT Global Data Centers Corporation.

The Bangkok 3 Data Center (BKK3), the latter’s ambitious project, is set to commence operations in late 2024.

These initiatives underscore Thailand’s attractiveness as an investment hub for global cloud and data centre providers.

This trend, which began years ago, includes Tencent Cloud, Huawei, and NTT, with Alibaba Cloud, Amazon Web Services, and Google Cloud joining the bandwagon last year.

The new Telehouse data centre, located on Rama IX Road in Bangkok, is an addition to the company’s 45 global locations.

As the managing director of Telehouse (Thailand), Ken Miyashita emphasized the company’s intent to provide secure and reliable data centre services.

The data centre underscores an interconnection strategy, aiming to become a hub where various telecommunication carriers and service providers exchange data.

Concurrently, NTT has announced a significant investment to construct its largest Thai data centre.

Positioned strategically in the Eastern Economic Corridor’s Amata City Chonburi industrial estate, this new infrastructure aims to cater to hyperscalers and enterprises.

Takeshi Kimura, the managing director of NTT Global Data Centers Holding Asia Pte, expressed NTT’s plans to expand its presence and establish a critical infrastructure platform in the region.

This new Bangkok data centre follows the footsteps of the recently completed Jakarta 3 Data Center in Indonesia, and precedes the upcoming Cyberjaya 6 Data Center in Malaysia.

NTT’s chief executive in Thailand, Sutas Kongdumrongkiat, highlighted the increasing need for infrastructure to handle vast real-time data transmission volumes, echoing the rapid digital transformation in Thailand and the Asia-Pacific region.

He was supported by Suthipat Lueprasert, the chief executive of NTT Global Data Centers (Thailand), who stated, “The need for data storage and managed hosting services is predicted to soar across Thailand.

“BKK3 will cater to our clients’ requirements, particularly cloud service providers and the financial industry,” he revealed.

Furthermore, Lueprasert stressed the importance of integrating green energy into their data centres, in line with NTT’s “Green Innovation” vision.

This approach aligns with Thailand’s commitment to achieving net-zero emissions by 2050.

The data centres’ expansions align with Gartner’s forecast that Thai organizations will increase their expenditure on public cloud services by 31.7% in 2023.

The surge in investments by Telehouse and NTT signifies an promising future for Thailand’s growing digital ecosystem.