Frasers Property (Thailand) Public Company Limited or “FPT” (formerly known as TICON), an integrated real estate platform in Thailand, and ST Telemedia Global Data Centres (STT GDC), a data centre service provider headquartered in Singapore, are set to begin their first hyperscale data centre built to global standards under their joint venture partnership, riding on the growth of Thailand’s digital economy.
The development will have two data centre buildings and the first building is designed with close to 30,000 sqm of gross floor area. The investment for this hyperscale data centre project is worth more than 7 Billion Baht and construction of phase 1 of this project is expected to be completed in 2021.
Sopon Racharaksa, President of FPT, noted, “In recent years, many large corporates and medium-sized organizations have embraced digital transformation in their business operations, giving rise to demand for colocation data centers that are highly secure, agile and reliable. We are confident that the joint venture between FPT and STT GDC will help contribute to Thailand’s digital economy.
This collaboration will broaden FPT’s ability to offer comprehensive services from industrial buildings to data centre services to our customers. Frasers Property Thailand, as a leading provider of Smart Integrated Real Estate Platform, will bring our local expertise to ensure successful development and market entry of this state-of-the-art data centre. The joint venture’s first data centre in Ramkhamhaeng is located in the centre of Bangkok, which will help develop seamless connectivity and ease of access to business communities. We expect a strong demand from banking and financial institutions, e-commerce players, global cloud operators, MNC’s and local corporates.”
Reports showed that prospects for Thailand’s digital economy is positive. IT related spending is estimated at USD 72 billion over 2019 to 20221. Therefore, there is an increasing need for data centre colocation. Business entrepreneurs today are looking for facilities that are highly secured, flexible and energy efficient resulting in growth in demand for data centres and cloud computing in line with the global trends. The digital economy is expected to bring robust growth and contribute up a quarter of Thailand’s GDP by 20272 while the total data centre market in ASEAN has been forecasted to grow from US$1.9 billion in 2017 to US$5.4 billion in 2024 at a compound annual growth rate of 16.1%.
Bruno Lopez, Group Chief Executive Officer, STT GDC says, “Combining our world-class data centre development capabilities with FPT’s long-standing real estate experience in the Thai market, the joint venture’s first data centre in Ramkhamhaeng of Bangkok will be a state-of-the art development, incorporating some of the latest data centre technologies and sustainable design features to ensure optimal energy efficiency. We are already seeing positive interest from global cloud service providers and enterprises who are looking to leverage the growth in the digital economy.”