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Thailand is popular, global IT giants set their sights on investing in data centers

BOI reveals that technology giants are accelerating their investment plans for Data Centers and Cloud Services, highlighting 5 strengths to push Thailand to become a key strategic point connecting the region, elevating it to the center of the digital economy in ASEAN, showing the total investment promotion for Data Center and Cloud Services businesses, totaling 37 projects, with an investment value of over 98 billion baht, ready to support digital and AI service businesses that have high growth potential. Mr. Narit Therdsteerasakdi, Secretary-General of the Board of Investment (BOI), revealed that Thailand is one of the target countries that is a strategic point for investment in Data Centers and Cloud Services to support the expansion of artificial intelligence (AI) and various digital services that are growing rapidly in the region because it has at least 5 advantages: (1) Its location is in the center that can connect to other countries in the ASEAN region, especially its potential to be a Connecting Hu b for the CLMVT countries with a combined population of over 250 million people. (2) It is highly secure and has low risk of natural disasters. Data Centers are businesses that require high security because they have to maintain a huge amount of important customer data. Thailand has an advantage in this regard because there are no earthquakes, typhoons, or severe disasters. Thailand is also neutral and is not a conflicting country on the international stage. In addition, there are digital regulations that meet international standards, such as the Personal Data Protection Act (PDPA) and the Cyber ??Security Act, which help build investor confidence. (3) Its infrastructure is of high quality, including a stable electrical system and the potential to provide clean energy, which are important conditions for Data Center investment. It also has a high-speed internet network that is ranked in the top 10 in the world and a 5G network that covers the largest area in ASEAN. Able to support high volumes of data trans mission (4) The domestic market is expanding rapidly, with demand from organizations upgrading to the digital age (Digital Transformation), the government's Cloud First Policy, the proportion of internet access being as high as 88 percent of the population, more than 70 percent of the population using social media, and people having skills in conducting financial transactions via digital systems such as PromptPay, Mobile Banking, e-Payment, including the use of applications to receive rights under economic stimulus measures in the past (5) Attractive privileges from the BOI, including exemptions from import duties on machinery and equipment, exemptions from corporate income tax, permission to own land for promoted businesses, facilitation of visas and work permits, income tax reductions for highly skilled personnel, information services and assistance in finding project locations, assistance in coordinating the application for permits from various agencies, including measures to alleviate the impact of th e new tax rules (Global Minimum Tax), all of which are factors that global technology companies are focusing on. At present, there are 37 Data Center and Cloud Service projects approved for investment promotion by BOI, with an investment value of 98.539 billion baht. Most of them are located in Bangkok, Samut Prakan, Chonburi, and Rayong. Many world-class companies have already invested in setting up Data Centers in Thailand, such as Amazon Web Service (AWS) which announced an investment of more than 200 billion baht in Data Centers in Thailand by 2037. In the first phase, 3 Data Centers have already been invested, with an investment of more than 25 billion baht. Other projects include NextDC from Australia with an investment of 13.7 billion baht, STT GDC from Singapore with an investment of 4.5 billion baht, Evolution Data Center from Singapore with an investment of 4 billion baht, Supernap (Switch) from the United States with an investment of 3 billion baht, Telehouse from Japan with an investment of 2.7 b illion baht, One Asia from Hong Kong with an investment of 2 billion baht, and Google and Microsoft, world-class service providers, have also announced plans to invest in Data Centers in Thailand. The details are currently being considered together with the BOI and the Prime Minister's team. For the Cloud Service business, there are leading companies that have received investment promotion from the BOI, such as Alibaba Cloud, which has invested more than 4 billion baht, and Huawei Technologies, which has invested more than 3 billion baht. In addition to leading companies from abroad, there are many other high-potential Thai entrepreneurs who have invested in the Data Center and Cloud Service business, such as True Internet Data Center, Internet Thailand Company, and GSA, which is a joint venture between Gulf, Singtel, and AIS. In addition to Data Center and Cloud Service businesses, BOI also promotes investment in digital industries in a comprehensive manner, including software development, platforms for di gital services, digital content, and businesses supporting the digital ecosystem, such as Innovation Park, Maker Space or Fabrication Lab, and Smart City area and system development. In the past, the promotion criteria have been adjusted to be in line with modern technology and support investment in digital businesses that are changing rapidly. 'Data Center and Cloud Service businesses are considered important infrastructures for the modern world. The decision to invest in Thailand by Hyperscale service providers such as AWS, Google, Microsoft, and leading technology companies from many countries reflects that Thailand is a suitable country for conducting digital businesses in terms of environment, infrastructure, quality of personnel, and government support measures. The benefits of these investment projects will help create high-skilled jobs, both directly and indirectly, in telecommunications, public utilities, consulting, and other related businesses. It will also provide Thai entrepreneurs with easier a ccess to high-quality Cloud services and other digital technologies, helping to accelerate the Digital Transformation process, supporting the development of businesses that require high-speed data transmission and reception, and further developing Thailand to become the digital economic center of the region,' said Mr. Narit. -517-Thai News Agency Source: Thai News Agency