Krungsri (Bank of Ayudhya PCL) organized the "Data Center Opportunities in Thailand 2024" seminar for business clients and investors, providing updates on trends and investment opportunities in the data center business and related industries in Thailand. The seminar featured experts from Krungsri and MUFG, along with distinguished representatives from the Thailand Board of Investment (BOI), the Eastern Economic Corridor Office of Thailand (EECO), and senior executives from leading organizations in the data center industry. These experts shared their visions and insights, equipping participants with strategies for business expansion and investment. The event is expected to establish Thailand as a global leader in data center development and position Thailand as digital economy hub of ASEAN. The seminar was recently held at the Okura Prestige Bangkok.
Mr. Bunsei Okubo, Krungsri Head of JPC/MNC Banking, said: "Krungsri recognizes the vital role of investing in the data center sector as a driving force behind the future of Thailand's digital economy. The rapid growth of data center investments today underscores Thailand's potential to become a regional hub for the digital economy in ASEAN. Recognizing this significant opportunity, Krungsri has organized the "Data Center Opportunities in Thailand 2024" seminar to provide a platform for experts to share valuable insights and perspectives that will benefit businesses and investors in building networks and fostering sustainable growth in the data center sector. As a strategic partnership, Krungsri and MUFG are committed to supporting our business clients with essential financial solutions and advisory services for their data center ventures. By leveraging Krungsri's local expertise and MUFG's extensive global network, we strive to facilitate investments, connect clients to MUFG's clients, and foster collaboration to unlock new business opportunities and drive sustainable growth together."
The seminar started with an overview of global trends in the data center industry and future perspectives on Thailand's data center sector, presented by Mr. Siwapoom Jantha, Senior Consultant, MU Research and Consulting (Thailand). He revealed that "Thailand has become a key player in the ASEAN data center market, achieving a growth rate of 24%, or 50 billion baht, in overall market value. The data center market is projected to grow by 20% due to a 3.7-fold increase in business data usage, alongside rising demand for cloud services, 5G adoption, and investments from major corporations such as Google and Amazon Web Services (AWS). Thailand is well-positioned for growth in the data center business, focusing on attracting foreign investors and companies to establish Thailand as a regional data center hub and a leader in the digital transformation of ASEAN. The Thailand's digital economy strategy emphasizes four key areas: the development of digital public services, accessibility and convenience, facilitation of high-value business operations, and citizen engagement with open data initiatives."
Dr. Ratchanee Wattanawisitporn, Director of the Foreign Investment Promotion Division, Thailand Board of Investment (BOI), shared key insights on investing in Thailand's data center industry. She stated: "Thailand has a strategic goal of becoming a prime destination for data center investments. To achieve this, the BOI provides a range of incentives and support measures for foreign investors. Under the BOI's 2023-2030 Investment Promotion Strategy, we emphasize comprehensive support, including both tax and non-tax incentives, and enhancing the ecosystem to ensure smooth investment processes. The BOI assists investors in reducing costs and provides tailored investment incentive packages, covering research and development as well as sector-specific activities in the data center industry. Our objective is to create an environment that fosters innovation and drives the growth of the digital economy."
"Recognizing the importance of the digital economy, the Thai government has made it a key engine for driving the nation toward becoming a hub for digital innovation. The BOI also offers a One Stop One Start (OSOS) service to assure investors of the necessary support throughout their business expansion in Thailand, including assistance with visas and work permits for foreign business professionals and investors. Additionally, the HQ Biz Portal, developed in collaboration with key government agencies such as the BOI, the Revenue Department, the Department of Business Development, and the Bank of Thailand, offers streamlined solutions to facilitate business operations."
Dr. Ruangrit Umpujh Upalanala, Deputy Director of the Digital Industry and Innovation Promotion Division, The Eastern Economic Corridor Office of Thailand (EECO), said: "The Eastern Economic Corridor (EEC) is a strategic area for investment in Thailand, driven by the Thailand 4.0 national strategy. The region offers clear investment advantages, including its role as a hub for land transport, deep-sea ports, and airports, all of which have been continuously developed over the past 30 years. The EEC is now entering a new era, ready to welcome foreign investors. The investment incentives in the EEC focus on targeted investments, specifically designed to support business startups with comprehensive solutions. The EEC prioritizes five key industries: medical and healthcare, digital (including data centers), future automotive, BCG industries, and services. Additionally, there are designated zones for specific industries, such as EEDd for digital industries and EEDi for innovation industries. These areas are specially allocated to meet the needs of innovators, helping to drive growth in these specialized businesses."
During the panel discussion, esteemed executives from leading organizations participated, including Mr. Ken Miyashita, Managing Director, Telehouse Thailand, Mr. Suthipat Lueprasert, Chief Executive Officer, NTT Global Data Center (Thailand) Co., Ltd., Mr. Akira Takahashi, President and Managing Director, Mitsubishi Power Thailand, Mr. Surasak Wanichwatphibun, Chief Technology Officer, Huawei Thailand Cloud Business, Huawei Technologies (Thailand) Co., Ltd., and Mr. Tul Roteseree, Krungsri Head of Enterprise Data and Analytics Group. They shared their perspectives on Thailand's data center industry, highlighting Thailand's advantages, such as political stability, strategic location within the ASEAN region, and significant investments from major cloud companies, which reflect high demand and growth potential. Furthermore, the support from the government, initiatives for renewable energy, and investment promotion policies are driving Thailand's emergence as a key destination for data center development.
However, challenges persist, including higher energy costs compared to neighboring countries and a shortage of skilled workforce. To address these challenges, it is essential to invest in human resource development through updated educational curricula and training programs, while also planning for the long-term development of water and energy infrastructure. Furthermore, policies and regulations must be established to support investment and create a favorable environment for the sustainable growth of the data center industry.
At the end of the seminar, experts in finance and investment were honored to join the discussion, including Ms. Jean Monson, Director of the Project Finance Department, Asia Investment Banking Division, MUFG, Mr. Sachin Goel, Director of Sector Coverage Department, Global Corporate Banking Division for Asia, MUFG, and Mr. Nantawat Nopparatanawong, Krungsri Senior Vice President of Project Finance and Structured Finance Department. They provided valuable insights into investment advisory services and financial solutions, reaffirming Krungsri and MUFG's commitment to supporting both domestic and international investors. By offering a range of financial services across various sectors, including commerce, industry, and marketing, they aim to drive business growth, particularly in the data center sector. Leveraging Krungsri's deep expertise in the Thai market and MUFG's robust global network, both organizations are well-positioned to meet the diverse financial needs of business clients and investors, fostering the efficient and sustainable growth of Thailand's data center industry.
This seminar is part of an ongoing initiative to empower business clients and drive sustainable business growth. It provides regular updates on key developments and shares valuable insights from leading experts, offering clients access to in-depth knowledge. The event also inspires and creates opportunities for business expansion.