Aligning with Thailand's Cloud-First Policy and the rising demand for digital services, Equinix augments its pace of expansion in Southeast Asia
Thailand's proximity to the neighboring CLMV (Cambodia, Laos, Myanmar and Vietnam) sub-region coupled with the government's proactive Cloud First-Policy has spurred an unprecedented surge in demand for greater digital interconnectivity. Responding to the increasing needs of both enterprises and major cloud service providers, Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company(R), today announced an intention to invest approximately $500 Million in Thailand in phases over the next ten years, including the recent acquisition of land in Bangkok for approximately US$34 million. This organic expansion is a pivotal step in Equinix's commitment to advancing digital capabilities in Thailand and across Southeast Asia, ensuring the provision of low-latency, reliable digital services for organizations to seize digital opportunities in the region.
Thailand's high internet penetration rate of 85% and appetite for digitalization signal the nation's readiness for enhanced digital infrastructure capacity and capability.[1] The Data Centre market is expected to grow at 13%[2] compound annual growth rate (CAGR) and with strong support for initiatives like Thailand 4.0 and the Cloud First-Policy, the country's digital infrastructure development has a highly promising future.[3] Major cloud players have begun establishing a local presence and continue to focus heavily on growing their footprint in Thailand. This investment by Equinix is another step in its Asia-Pacific expansion strategy, which will fuel long-term growth of digital infrastructure in Thailand and the CLMV countries.
The newly acquired land in the Bangna Area of Bangkok, covering over 18,700 square meters, is intentionally located near the existing Bangkok interconnection eco-system. The land will be used to establish two Equinix International Business ExchangeTM (IBX(R)) data centers, providing more than 3,375 cabinets at full build out. Its prime position next to the main transport route connecting the airport and the city center, along with its access to public infrastructure and a reliable supply of land and power makes it an ideal location to capture growth and interconnectivity opportunities in Bangkok.
Narit Therdsteerasukdi, Secretary General, Thailand Board of Investment, said: "The next decade will see accelerated shifts in supply chains and migration to the cloud, with manufacturing and digital economic production diversifying across Thailand and the rapidly growing CLMV sub-region. Thailand has emerged as a prime investment destination in this supply chain transformation, attracting substantial investments in prominent industrial clusters, particularly in cloud services, electronics and electric vehicle sectors. Under our Cloud-First Policy, the nation is well-positioned to capture future growth opportunities as a regional hub and digital economy leader for the Greater Mekong region. We are excited to work alongside Equinix to foster our digital capabilities and drive forward our vision for a technologically advanced Thailand."
Cyrus Adaggra, VP of Corporate Development, Asia-Pacific, Equinix, commented: "Thailand stands at the forefront of digital growth in Southeast Asia, with immense untapped potential as it becomes a key player in the region's digital economy. Equinix's entry in Bangkok is yet another milestone advancing our overarching strategy to enhance interconnection across Thailand and Southeast Asia. This investment underscores our commitment to building a robust and increasingly diverse ecosystem that brings together major cloud service providers and enterprises, fostering business growth and innovation in the region. We look forward to collaborating with our international customers, local enterprises and Government stakeholders to realize this vision and create a more connected, resilient and digitally enabled Thailand economy."
In Asia-Pacific, Equinix currently operates 58 data centers located in 15 key metros across Australia, China*, Hong Kong, India, Japan, Korea, Malaysia and Singapore. Most recently, Equinix announced its market entry into the Philippines and continued expansion in Hong Kong, Malaysia and India. Its global presence with 264 data centers across 72 metros continues to support over 10,000 leading businesses worldwide.
*Equinix operates four data centers in Shanghai through a strategic partnership