Construction has commenced on what is set to become the 'largest hyperscale data centre' in Thailand, located in Ramkhamhaeng, Bangkok with an expected opening date of 2021.
Occupying 60,000 sqm gross floor area, the new centre is a collaborative effort between Singapore-headquartered data centre service provider ST Telemedia Global Data Centres (STT GDC) and Frasers Property Thailand (FPT).
The site will consist of two adjacent data centres, with the first building occupying close to 30,000 sqm of gross floor area. The development is set to cost more than 7 Billion Baht (US$220 million), with phase 1 set to complete by 2021.
“Combining our world-class data centre development capabilities with FPT’s long-standing real estate experience in the Thai market, the joint venture’s first data centre in Ramkhamhaeng of Bangkok will be a state-of-the-art development, incorporating some of the latest data centre technologies and sustainable design features to ensure optimal energy efficiency,” said Bruno Lopez, Group CEO of STT GDC.
“We are already seeing positive interest from global cloud service providers and enterprises who are looking to leverage the growth in the digital economy."
According to IDC, the IT spend across organisations in Thailand is estimated at US$72 billion over 2019 to 2022.
Therefore, there is an increasing demand for colocation facilities from organisations across the country, which this new data centre development hopes to cater for.
Organisations want facilities that are not just secure but also flexible and energy efficient. Overall, the digital economy is expected to contribute up a quarter of Thailand’s GDP by 2027, according to the Thailand Board of Investment.
Furthermore, the total data centre market in ASEAN has been forecasted to grow from US$1.9 billion in 2017 to US$5.4 billion in 2024 at a compound annual growth rate of 16.1 per cent.
“In recent years, many large corporates and medium-sized organisations have embraced digital transformation in their business operations, giving rise to demand for colocation data centres that are highly secure, agile and reliable,” said Sopon Racharaksa, President of FPT.
“We are confident that the joint venture between FPT and STT GDC will help contribute to Thailand’s digital economy."
According to Racharaksa, the collaboration will "broaden" FPT’s ability to offer "comprehensive services" from industrial buildings to data centre services to customers.
“Frasers Property Thailand, as a leading provider of Smart Integrated Real Estate Platform, will bring our local expertise to ensure successful development and market entry of this state-of-the-art data centre," Racharaksa added. “The joint venture’s first data centre in Ramkhamhaeng is located in the centre of Bangkok, which will help develop seamless connectivity and ease of access to business communities.
"We expect a strong demand from banking and financial institutions, e-commerce players, global cloud operators, MNC’s and local corporates."