Thai data centre market on cusp of rapid growth

The US's AI Diffusion Framework has a profound effect that is flipping data centre acquisition on its head in Southeast Asia.

I was in Bangkok earlier in the week where I shared how data centre professionals can look beyond the hype - or headlines, to better predict future trends.

As usual, I also learned from other speakers and participants.

In this case, I heard how recent developments, such as the AI Diffusion Framework, are reshaping traditional approaches to data center deployments.

Growing data centre demand

But first, how is Thailand faring in terms of data centres? Turns out the Thai data centre market could be on the cusp of rapid growth.

In an update released on Friday titled "The Digital Rush: Data Centers Power a Demand Surge", Colliers says that data centres will be a major investment trend in 2025.

According to Colliers, the demand for data centres is driven by the growing need for data storage and processing facilities.

However, it cautioned that projected increases in land acquisition cost will temper some of the anticipated growth trajectory.

Shifting norms in Southeast Asia

The landscape in Southeast Asia has changed, and operators here have to move "very, very fast," according to a speaker I heard.

This means data centre operators without immediate access to land could be left out in the cold. In a way, this explains the frenetic pace of land acquisition at locations such as Johor.

Crucially, to preempt potential GPU restrictions:

• Some customers are ordering older GPUs they can purchase today over upcoming models.
• Other customers are ordering GPUs first ahead of data centre readiness despite the financial hit.
• Stated capacity requirement is typically 50MW with 20MW being the minimum; 100MW is preferred.

Of course, it remains to be seen if this surge will fizzle out within the year - or power on beyond 2025.