Thailand's data center services market to expand 8% in 2025

Thailand's data center services market is projected to grow by 8% this year to THB12.7 billion ($379.16 million), driven by rising demand for greater processing power to support companies' adoption of AI and enlarged data storage.

The finance, wholesale and retail, and healthcare sectors are taking the lead in data center service demand, according to Kasikorn Research Centre (K-Research).

Data center services are expected to account for 43.3% of the overall Thai data center market this year, with the remainder coming from companies' investment in their own data centers, noted the research house.

Thai businesses are increasingly shifting towards using data center services instead of investing in their own infrastructure, in order to reduce costs and gain access to AI solutions for data analytics offered by service providers alongside demand for data storage, said Theeraphoom Vuthipramote, a researcher at K-Research.

Thailand's data center services industry has posted continuous growth over the past five years, with total revenue tallying an average annual growth rate of 12.6% thanks to the work-from-home trend driven by the Covid-19 pandemic.

However, the growth trends to slow down due to the economic challenge and the uncertainty stemming from the U.S.'s reciprocal tariff that threatens to worsen the economy, he said.

Roughly 94% of the demand for data storage services in Thailand comes from private sector enterprises, driven by the increasing adoption of digital technologies for business planning and customer engagement.