ST Telemedia Global Data Centres and TICON finalise joint venture partnership with development of first data centre in Thailand

Singapore and Thailand, 19 December 2018 –  ST Telemedia Global Data Centres (STT GDC), a leading data centre service provider headquartered in Singapore, today announced that they have finalised the joint venture partnership with TICON, the leading smart industrial platform provider in Thailand on a 49:51 basis. The joint venture will develop their first data centre on a 75,000 square metre (15-rai)  site in Hua Mak, situated in central Bangkok.

In line with the Thailand 4.0 initiative to develop the digital economy in the country, as well as the Thai government’s National Digital Economy Masterplan [1], the digital economy is expected to see robust growth and contribute up to 25% of Thailand’s GDP by 2027 [2]. At the same time, public cloud spending in the Asia Pacific region excluding Japan is expected to grow exponentially at a compound annual growth rate (CAGR) of 32.58% [3] between 2016 to 2021. This projected increase in digitisation and digital transformation is expected to bring about a correspondent increase in demand for digital infrastructure and data centre capacity in Thailand and the region.

Mr. Panote Sirivadhanabhakdi, Chairman of the Executive Committee of TICON Industrial Connection Pcl. (TICON), said, “We believe in the market potential of expanding our focus into developing Thailand’s digital economy and transforming urban living with Smart Cities. Developing digital infrastructure in the form of state-of-the-art data centres is one of the key investment areas we are embarking on in this new economy. We are delighted to partner with a reputed global player like STT GDC in this joint venture, and believe the combined strengths of both companies will allow us to best serve the digital growth plans of our customers.”

Mr. Sopon Racharaksa, President of TICON Industrial Connection Pcl. (TICON), added, “We have been serving Thailand’s industrial needs with our international standard quality of industrial properties for more than 28 years. This joint venture partnership will broaden TICON’s digital and technology service on top of our existing offering as the leading developer of integrated industrial properties. We are confident that our long term experience in industrial property development, together with STT GDC’s world-class expertise in data centre development will create synergies and realise the immense potential for growth in the data centre business in Thailand.”

Mr. Bruno Lopez, Group Chief Executive Officer of STT GDC, said, “This development marks STT GDC’s first foray into the Thai data centre market, and will strengthen our expanding network across major data centre markets around the world. With our ‘think global, act local’ mantra, we believe that TICON, with their rich legacy and successful operating history in the country, will be valuable partners in our new venture. We are confident that with our expertise in designing, building and operating data centres to the highest global standards in key markets such as Singapore, China, India and the UK, as well as the local expertise of TICON in understanding the needs of the Thai market and navigating its regulatory environment, we will be able to meet the demands of our customers in Thailand, support their digital growth and help them realise the Thailand 4.0 vision.”

The data centre project has begun on its development phase, and is strategically located on a 75,000 square metre (15-rai) site in Bangkok. Construction is expected to commence in mid-year of 2019, and is due for completion and service commencement by 2020.
 

[1] Thailand’s Digital Economy: Setting the Pace in ASEAN, Thailand Board of Investment, Sep 2018
[2] Thailand’s Digital Economy and Software Industry, Thailand Board of Investment
[3] APeJ Public Cloud Services Spending Forecast to Reach $15 Billion in 2018, IDC Reports, Feb 2018