In recent years, businesses in Thailand have increasingly digitalized their operations and processes; with more organizational data being stored online, demand for data centers as online information storage facilities has risen.
What are data centers? Data centers are facilities that house a set of IT infrastructure. There are four main types of data centers, all of which provide different offerings depending upon each potential customer’s requirements.
Demand for data centers in Thailand
Demand for data centers in Thailand has increased as a result of intensifying digitalization, rising data traffic and investment promotion through government incentives. Thailand’s data center market is expected to grow by a CAGR of 27% between 2019-20261, indicating a potential opportunity for investors to enter a steadily growing industry. Furthermore, data center related services can also be bundled with other cutting-edge technology, such as AI or analytics, from a service provider’s perspective.
Recent data center momentum in Thailand included the acquisition of a majority stake (67%) in prominent data center operator Genesis Data Center Co., Ltd by Etix Everywhere Holdings, a global provider of colocation services, in January 2022, and the joint development agreement of a data center in Thailand between Gulf Energy Development PCL, Advanced Info Service PCL, and Singapore Telecommunications Ltd in February 2022.
Where to play?
Businesses considering entry into the data center market can assess both upstream and downstream segments of the value chain, depending upon their existing competencies and strategic and financial ambitions.
Maximizing return on investment
Opportunities to enter the data center market are highly sought-after by both domestic and foreign investors. Significant capital inflow has been directed to this asset class by corporate investors, private equity firms, pension and infrastructure funds and sovereign wealth funds. Investors interested in this fast-growing sector should consider a number of important tax and legal structuring aspects to optimize their investment value.
How we can help you across the deal cycle
KPMG Deal Advisory is a unique M&A platform with execution capabilities across the entire transaction lifecycle, allowing us to support you at any stage of your contemplated data center transaction. Our core propositions are indicated, but not limited to, the following services:
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