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The investment is anticipated to strengthen Thailand's efforts to revive its struggling economy, which has faced challenges due to elevated levels of household debt
Dubai’s Damac Group is investing around $1 billion in a data center project in Thailand. It is one of the global efforts by technology companies to expand cloud and AI infrastructure in Southeast Asia.
The Edgnex Data Centers plans to pour more than 32 billion baht in three to four data center projects through a joint venture with local data center provider Proen Corp. Edgnex Data Centers is the headquarters of Damac Group, according to a statement by Damac Group.
Data Center Built with Power of 5 Megawatts
The first data center is built in downtown Bangkok. Initially, the data center will go online with a power of 5 megawatts of capacity that further will be expanded to 20 megawatts. The data center will go online by March.
Damac Group’s founder, Hussain Sajwani said in an interview. “As the demand is cooking up and growing, we will be looking to launch that it’s a gradual process.”
It will expand Bangkok’s data center capacity with support from the government to expand its digital infrastructure.
The investment follows the strategy of Google to spend $1 billion to build data centers in Thailand. This investment is to meet the increasing demand for artificial intelligence.
This initiative is anticipated to strengthen Thailand's efforts to revive its struggling economy, which has faced challenges due to elevated levels of household debt.
Clients Include Hyperscalers and AI-related Businesses
The potential clients include hyperscalers and AI-related businesses, as well as government agencies, said Hussain Sajwani. Damac has around 100 megawatts of future data center capacity in its pipeline.
Southeast Asia is emerging as a market for Microsoft Corp., Nvidia Corp. and Amazon.com Inc. These companies are spending millions of dollars on the AI infrastructure.
The company also plans to invest in high-end residential projects, Hussain Sajwani said.