Equinix Investing $500M in Thailand Digital Infrastructure to Enter Fifth SE Asia Market

Equinix is the latest player to enter Thailand’s blossoming data centre market, with the US giant announcing a plan to invest $500 million in the kingdom’s digital infrastructure over the next decade.

As part of the rollout, Equinix recently acquired a site in Bangkok for development of two data centres, the Silicon Valley-based company said Tuesday in a release. The $34 million land buy gives Equinix a presence in a fifth Southeast Asian country after establishing a foothold in Indonesia, Malaysia, Singapore and the Philippines.

Thailand’s internet penetration rate of 85 percent and appetite for digitalisation signal the nation’s readiness for enhanced digital infrastructure capacity and capability, according to Equinix, which also pointed to the country’s proximity to developing neighbours Cambodia, Laos, Myanmar and Vietnam, as well as the Thai government’s cloud-first policy to help state agencies embrace cloud services.

“Thailand stands at the forefront of digital growth in Southeast Asia, with immense untapped potential as it becomes a key player in the region’s digital economy,” said Cyrus Adaggra, vice president of corporate development for Asia Pacific at Equinix. “Equinix’s entry in Bangkok is yet another milestone advancing our overarching strategy to enhance interconnection across Thailand and Southeast Asia.”

Strategic Site

The newly acquired development site spans 18,700 square metres (201,285 square feet) in the Bang Na area of eastern Bangkok and will be used to establish the pair of data centres under the International Business Exchange (IBX) co-location brand with more than 3,375 cabinets at full buildout, Equinix said.

The site’s position next to the Bang Na-Trat transport route connecting the airport and the city centre, along with access to public infrastructure and a reliable supply of land and power, makes it an ideal location to capture growth and interconnectivity opportunities in Bangkok, according to the developer.

Thailand’s Nation news site reported Tuesday that Equinix had secured privileges from the state-run Board of Investment and would invest THB 7.18 billion ($210 million) in its first phase of data centre development. BOI’s privileges for foreign investors typically involve tax breaks and streamlined project applications.

“Under our cloud-first policy, the nation is well-positioned to capture future growth opportunities as a regional hub and digital economy leader for the Greater Mekong region,” said BOI secretary general Narit Therdsteerasukdi. “We are excited to work alongside Equinix to foster our digital capabilities and drive forward our vision for a technologically advanced Thailand.”

NASDAQ-listed Equinix operates 58 data centres in Asia Pacific. In July the company announced its entry into a fourth Southeast Asian country with the acquisition of three facilities in the Philippines from Manila-based tech firm Total Information Management for an undisclosed price.

Equinix entered Malaysia in 2022 through a $40 million investment in a hyperscale facility in Johor, which came on the heels of a $74 million commitment for an Indonesian facility in central Jakarta. It received a permit in 2023 to develop its sixth Singapore data centre after the city-state’s government lifted a four-year moratorium on new builds.

Kingdom Heats Up

Equinix’s push into Thailand follows Google’s September announcement that the tech giant would spend $1 billion to expand its digital infrastructure into the kingdom, including plans for a data centre in the eastern industrial heartland and a public cloud location in Bangkok.

That statement came after rival Microsoft’s May declaration of “significant commitments” to new cloud and AI infrastructure in the country.

Bloomberg reported in October that Dubai-based Edgnex would invest $1 billion in three or four data centre projects in Thailand through a joint venture with local operator Proen Corp.