Thailand’s $3.1 Billion Data Center Expansion: A Game Changer for Digital Infrastructure and AI

On November 10, 2025, Thailand’s Board of Investment (BOI) made a landmark announcement, approving four major data center projects with a total investment of nearly 100 billion baht (approximately US$3.1 billion). This move signals a significant push by Thailand to establish itself as a leading digital economy hub in Southeast Asia, strengthening the country’s digital infrastructure and supporting future growth in artificial intelligence (AI) and cloud services.

These projects reflect Thailand's commitment to becoming a regional leader in digital innovation, with a clear focus on enhancing its data center capabilities. As part of a broader effort to attract international technology investment and accelerate digital transformation, Thailand's BOI has approved both local and foreign investments in hyperscale data centers, which are designed to support AI workloads and the increasing demand for cloud computing services.

The Hyperscale Shift: Major Investments in Thailand’s Data Infrastructure

Among the newly approved investments, two stand out for their sheer scale and technological focus on AI: NextGen Data Center and Cloud Services, a subsidiary of Dubai-based DAMAC Digital, and Zenith Data Center and Cloud Services, a local Thai investor.

• NextGen Data Center: Leading the Charge in Hyperscale Infrastructure
  NextGen Data Center, backed by DAMAC Digital, will build its first 84-megawatt hyperscale data center in the Navanakorn Industrial Estate, Pathum Thani province. Valued at approximately 26.7 billion baht (US$826.42 million), this facility will serve as a critical hub for data storage and processing, optimized for AI and cloud applications. The center’s capacity is designed to accommodate growing demands for data and AI processing power, helping to future-proof Thailand’s digital ecosystem.

• Zenith Data Center: Expanding Local Capabilities

  Local investor Zenith Data Center is investing 54.9 billion baht (approximately US$1.7 billion) in a massive 200-megawatt hyperscale data center, also located in Pathum Thani province. This facility, which is set to be one of the largest in Thailand, will serve not only the local market but also broader ASEAN region demands for data processing, cloud services, and AI workloads.

These hyperscale centers are a significant part of the BOI’s strategy to build world-class infrastructure that can compete with regional powerhouses such as Singapore and Malaysia in the data center and cloud computing sectors.

Additional Investments Strengthening Thailand’s Digital Backbone

Other key investments include Telehouse (Thailand), a subsidiary of Japan’s KDDI Group, and ZDATA Cloud Technology Co., Ltd., which will build additional data centers in Bangkok and Chonburi province.

• Telehouse: Expanding Bangkok’s Data Center Capacity
  Telehouse, which already operates a data center in Bangkok, will build a new 12-megawatt facility at a cost of 7.55 billion baht (US$233.64 million). This facility will enhance Telehouse’s existing infrastructure and support Thailand’s growing demand for secure, reliable data services.

• ZDATA Cloud Technology: A Growing Cloud Ecosystem

  ZDATA Cloud Technology, a subsidiary of Singapore’s ZDATA, will build an 80-megawatt data center in Chonburi province with an investment of 9.09 billion baht (US$306.39 million). This project marks the second data center investment from ZDATA, reinforcing the country’s position as a growing hub for cloud services and big data analytics.

A Strategic Push for Regional Digital Leadership

These investments are part of Thailand’s broader goal to strengthen its position as a digital infrastructure hub in Southeast Asia. The BOI's approval of these data center projects aligns with a trend of growing investment in the region’s digital economy, driven by major global players like AWS, Google, Microsoft, and ByteDance. The data center sector is particularly vital as it underpins the growth of artificial intelligence, big data analytics, and cloud computing, which are key components of Thailand’s long-term economic strategy and which rely on advanced networking hardware like the AI smart PoE switch for efficient, intelligent power and data management.

By approving these projects, the BOI hopes to drive digital transformation, not only within Thailand but across the ASEAN region. As competition increases in the data center space, Thailand is positioning itself to be a leader, particularly in the field of AI. The focus on AI-capable infrastructure is aimed at attracting cutting-edge investments that will fuel the growth of technology-driven industries.

Revised Investment Incentives: Boosting Data Center Development Beyond the Eastern Economic Corridor

In addition to approving the major data center projects, the BOI also introduced new regulations designed to encourage further investment in digital infrastructure. Under the revised guidelines, projects outside the Eastern Economic Corridor (EEC) will be eligible for enhanced incentives, aiming to promote investment in regions beyond Bangkok and the industrial zones in the east. This move is expected to spur more balanced growth across Thailand’s digital economy, ensuring that the benefits of data center development are spread throughout the country.

Thailand’s Growing Role in the Digital Economy

With the continued expansion of data center investments, Thailand is on track to become a critical player in the global digital economy. In the first half of 2025 alone, the BOI approved 28 data center projects with a combined investment value of 521.2 billion baht (US$16.1 billion). This surge in investments is driven by the increasing demand for cloud computing, AI processing, and big data analytics. As Southeast Asia’s digital economy continues to grow, Thailand is well-positioned to capitalize on its strategic investments in data infrastructure.

As the BOI's latest approvals demonstrate, Thailand is determined to establish itself as a regional digital infrastructure leader. The country’s ongoing investment in data centers will not only bolster its position in the global tech ecosystem but also enhance the overall competitiveness of the ASEAN region in the rapidly evolving digital landscape.

By Jennifer Tseng

Hi, I'm Jennifer, Marketing Executive at lanaotek.com.

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