451 Research Report - Thailand Multi-Tenant DataCenter Market Assessment

Jun 09, 2022
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The research report covers the following areas: 


1. Background & Thailand Multi-tenant Data Centre Market Drivers


  • Local businesses in Southeast Asia are starting to respond favourably to a fundamental shift in business models and technologies that can help in reaching better business outcomes, and they are also catching up fast in terms of cloud usage.

  • The data centre providers in Thailand are heavily leveraged in two main industries, the BFSI and the telecom, while the early adopters of cloud usage are found to be from the manufacturing and financial services industries.

  • The Thailand 4.0 initiative based on the Thai Government's vision for a ‘new engine of growth’, market attractiveness for expansion of tech companies and foreign investments are potential future drivers for colocation adoption.

  • Recently implemented laws such as Personal Data Protection Act (PDPA) and the Cybersecurity Act represent an opportunity for providers to specialise in compliance to the technical aspects to help local businesses navigate these new standards.


2. Thailand MTDC Market Trends and Growth Indicators


  • While data centre builds are still continuing in Bangkok, there is an explosive growth just outside the city, largely attributed to cheaper land and new incentives and packages to attract businesses to the Eastern Economic Corridor (EEC) zone.

  • For colocation providers to differentiate from the telcos, they underscore the fact that they are carrier-neutral and provide access flexibility to businesses to any carrier.

  • With new data centre capacity coming online in Thailand situated well outside the city limits of Bangkok, the new challenge for colocation providers to address will be latency to the end users.


3. What it Means – The 451 Take


  • Much of the market demand today comes from the local financial sector, meaning the market still has some growing up to do, particularly from the enterprise buyer segment in the country.

  • Looking ahead, there are several factors in Thailand that could lend itself to new sources of demand.

  • Almost all of the colocation providers in the market offer services beyond colocation, but that is just one part of their overall approach to the market.

  • Even in an oversupply situation, perhaps providers will still be able to find differentiation apart from lowering their prices.

Download the report to find out more.