Data centre co-location market to hit $652m by 2029

Thailand's data centre co-location market has a projected value of US$652 million by 2029, driven by demand for greater processing power to handle artificial intelligence (AI) workloads, says ST Telemedia Global Data Centres (STT GDC).

- SUCHIT LEESA-NGUANSUK

A co-location data centre refers to a facility that rents out space for organisations to host their servers and other IT hardware.

Thailand has the potential to become a strategic location for data centres, alongside Singapore and Malaysia, if it can reduce electricity costs, said Budsarin Pradityont, country head of Thailand for STT GDC.

The company is considering expanding data centre services to cover areas outside Bangkok to serve customers, she said.

STT GDC is showcasing its advanced cooling technologies to support Thailand's first Nvidia DGX-ready data centre.

The rising demand for cloud computing and accelerated computing, particularly AI workloads, is driving an increase in data centre investments and built-out capacity, said Ms Budsarin.

Thailand's co-location data centre market is expected to generate $268 million this year before rising to $652 million in 2029, a compound annual growth rate (CAGR) of 27.1% during the five-year period.