NTT Data is proceeding with plans to invest $90 million in its third data center in Thailand, targeting businesses seeking colocation services for their server infrastructure. The Japanese technology giant’s Bangkok facility will focus on cloud service providers and financial institutions requiring GPU-capable servers for artificial intelligence applications.
The investment reflects intensifying competition in Southeast Asia’s data center market, where investment in AI and hyperscale data centers is projected to grow from $10.23 billion in 2023 to $17.73 billion by 2029. However, Thailand’s data center market is expected to grow from $790 million in 2023 to reach a projected $1.19 billion in 2029, representing a relatively modest expansion compared to regional peers.
NTT Data faces mounting pressure from hyperscale operators including Amazon Web Services, Microsoft, and Google, which have committed billions to Southeast Asian infrastructure. The company’s Bangkok 3 facility, originally scheduled for 2024 operations, has been delayed until the second half of 2025.
The data center push comes as generative AI can increase power consumption by more than 10 times, forcing operators to invest in costly cooling solutions. Thailand’s attractiveness stems partly from government incentives and lower natural disaster risks, though increasing investments in prime locations such as Bangkok will increase land prices.
Whether demand for premium colocation services can justify the capital expenditure remains uncertain as regional capacity expands rapidly.
