Thailand is emerging as one of the fastest-growing data centre markets in Asia-Pacific, fuelled by surging demand for artificial intelligence (AI), cloud computing and digital services.
CBRE Asia Pacific identified Thailand as a high-growth market alongside Indonesia in its recent report on data centre trends, citing strong demand from hyperscalers and co-location operators expanding across Southeast Asia.
The property consultancy noted rising power constraints and increasing costs in more established markets have prompted operators to explore alternative locations, benefiting countries such as Thailand.
The trend mirrors a broader global race to expand computing capacity. According to Oxford Economics, a UK-based economic research and forecasting consultancy, data centre construction is accelerating rapidly across the US and Asia as AI adoption drives unprecedented demand for digital infrastructure.
Oxford Economics noted AI workloads require significantly greater power capacity and cooling systems than traditional cloud facilities, reshaping how operators select development sites.
Unlike conventional data centres, AI facilities emphasise access to power and large land parcels rather than proximity to end users. As a result, emerging markets with available infrastructure and development capacity are increasingly attracting investment.
According to CBRE, Bangkok, Chon Buri and Rayong are destinations for new data centre developments, particularly within the Eastern Economic Corridor where infrastructure and connectivity are well-positioned to support large-scale facilities.
Marcus Burtenshaw, partner and head of industrial strategy and solutions at property consultancy Knight Frank Thailand, said the rise of AI-driven infrastructure is creating a new layer of demand for industrial land beyond traditional manufacturing and logistics uses.
"Data centres are increasingly becoming a strategic real estate asset class in Thailand, with operators prioritising locations that can provide reliable power, connectivity and room for future expansion," he said.
The growing presence of hyperscalers and cloud service providers is expected to lift demand not only for data centre facilities, but also for supporting infrastructure, industrial estates and utility networks surrounding major development clusters.
According to CBRE, projects under development in Thailand range from facilities with capacities of around 20 megawatts to large data centre campuses that could eventually exceed 300MW. The rapid expansion is expected to generate demand for land, industrial properties and supporting infrastructure, while attracting further investment from global technology firms.
CBRE said foreign investors continue to view Thailand as an attractive destination due to its strategic location, improving digital infrastructure and growing domestic demand for cloud and AI services.
"Joint ventures with local partners remain one of the most effective routes for international operators entering emerging Southeast Asian markets," the CBRE report noted.
Oxford Economics said data centres have evolved from a niche real estate segment into one of the world's most attractive investment themes, supported by strong capital inflows from institutional investors and technology companies seeking exposure to AI-related infrastructure.
Despite the strong outlook, CBRE cautioned that talent shortages remain a key challenge across the region, including Thailand, where demand for skilled data centre professionals is rising faster than supply.
Access to power is another critical issue. Oxford Economics said electricity availability has become the single biggest challenge facing data centre developers worldwide, as modern AI facilities require large and continuous power supplies that many grids are struggling to provide.
As AI adoption accelerates globally, Thailand is expected to strengthen its position as a regional digital infrastructure hub and play a larger role in Southeast Asia's evolving data centre landscape.
"Thailand is well-positioned to capture the next wave of regional investment due to its strategic location, improving digital infrastructure and state support for technology industries," said Mr Burtenshaw. "However, power availability, skilled labour and regulatory readiness will determine the country's long-term competitiveness."
