Equinix expands into Thailand with $500M investment

Equinix enters Thailand's rapidly growing data center market with a $500 million investment spread over the next ten years.

Gigi Onag, Senior Editor, APAC

October 30, 2024

2 Min Read
Bangkok_thailand_pexels
(Source: Pexels)

Equinix is expanding into Thailand with a $500 million investment spread over the next ten years to capture a significant share of the country's rapidly growing data center market.

The investment includes newly acquired land in the Bangna area of Bangkok valued at approximately $34 million, where the company plans to build two International Business Exchange (IBX) data centers that will provide more than 3,375 cabinets when fully built out.

With an area of more than 18,700 square meters, the newly acquired property is located on the main road connecting the airport and city center, providing easy access to Bangkok's existing interconnection ecosystem.

In a statement released Tuesday, Equinix said its entry into the Thai data center market is part of its strategic expansion in the Asia-Pacific region.

The company announced its planned entry into the Philippine market in July this year with the acquisition of three data centers from Total Information Management. It entered the Malaysian market in May this year with the launch of an IBX data center in Johor and Kuala Lumpur respectively, with plans to increase data center capacity in Cyberjaya.

Equinix also continues to invest in its existing markets in the region, such as the $124 million earmarked for a new purpose-built IBX data center in Hong Kong.

The company currently has 58 data centers located in 15 major metropolitan areas in Australia, China, Hong Kong, India, Japan, Korea, Malaysia and Singapore.

A regional data center hub in Southeast Asia

Narit Therdsteerasukdi, secretary general of the Thailand Board of Investment, believes the country's cloud-first policy positions it well to capture future growth opportunities as a regional hub and digital economy leader for the Greater Mekong region.

The Greater Mekong Region is made up of the neighboring countries of Cambodia, Laos, Myanmar and Vietnam.

"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," Therdsteerasukdi said in a statement.

According to a July 2024 report by Next Move Strategy Consulting, Thailand's data center market is expected to grow at a CAGR of 13% over the next six years, with revenues increasing from $652 million in 2023 to over $1.5 billion in 2030.

Read more about:

Asia

About the Author

Gigi Onag

Senior Editor, APAC, Light Reading

Gigi Onag is Senior Editor, APAC, Light Reading. She has been a technology journalist for more than 15 years, covering various aspects of enterprise IT across Asia-Pacific.

She started with regional IT publications under CMP Asia (now Informa), including Asia Computer Weekly, Intelligent Enterprise Asia and Network Computing Asia and Teledotcom Asia. This was followed by stints with Computerworld Hong Kong and sister publications FutureIoT and FutureCIO. She had contributed articles to South China Morning Post, TechTarget and PC Market among others.

She interspersed her career as a technology editor with a brief sojourn into public relations before returning to journalism, joining the editorial team of Mix Magazine, a MICE publication and its sister publication Business Traveller Asia Pacific.

Gigi is based in Hong Kong and is keen to delve deeper into the region’s wide wild world of telecoms.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like