Is Thailand the next data centre growth region?

Is Thailand the next data centre growth region to watch after Johor? Well, that depends.

At the W.Media Awards last week, a guest mentioned how Thailand is the next spot to watch according to a new report.

I was intrigued and found the report on the Business Times from last Tuesday:

• "Thailand’s data centre rush is starting."
• Thailand to benefit as Johor comes under "strain."
• "Malaysia strains to keep pace with surging demand."

I feel we need to add the appropriate context.

Why is Johor rejecting 30% of applications?

The report cited Johor's rejection of 30% of new data centre applications over the last five months as the reason for why it cannot cope.

I've said it before - Johor's incredible data centre growth is way too fast. To visualise it, let's compare it with Singapore, a top data centre hub.

• Singapore has over 90 data centres.
• These were built over the last decade.
• Johor is growing at 28 data centres in 2024*.

Johor grew from 10MW of data centres just 3 years ago to almost 1,500MW today. Singapore, in comparison, has 1,400MW today with limited growth capacity ahead.

Surely, it makes sense for Johor to be more selective in favour of sustainable developments.

Ultimately, the growth of the data centre industry in Johor is a once-a-generation opportunity. I don't see Johor or Malaysia eschewing this chance to become a regional data centre powerhouse.

No, sir.

*Extrapolated figure, not actual number.

By the numbers

In terms of committed and early-stage IT power as published in DC Byte's Global Data Center Index 2024 report, data centre growth in SEA will go to:

• Johor as the indisputable hub.
• Indonesia in second place.
• (Tie) Philippines and Thailand.

So yes, Thailand will undoubtedly grow and is definitely worth watching. However, it isn't the next location as alluded to by the Business Times report.

Context matters

I asked an analyst who knows a lot more about the Thai data centre market than me, and here are two comments posed to me:

• "I wonder if Macquarie backed the (Thailand) data centre project."
• (Grid) access charges for renewable power will need to be factored in for the full cost.

I'll leave you to mull over them.

It's a heady time for data centres in Southeast Asia, as the region rides a wave of growth. And I fully expect Thailand to experience a surge in data centre growth.

What do you think? Where's the next data centre growth region from your perspective?