Asia Pacific Data Centre Update

APAC EMERGING MARKET OVERVIEW

KEY INDICATORS*

38MW IN OPERATION

20 OPERATORS, 40 DATA CENTRES

106MW UC / PLANNED

29% VACANCY RATE

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Thailand has been an emerging market for data centre growth, with the vast majority of activity focused in the capital of Bangkok and the Eastern Economic Corridor (EEC). Thailand was the first ASEAN country to launch 5G service, prompting digitization and modernization efforts across the public and private space. While there are a handful of data centre operators in the market with international ties, the vast majority of Bangkok is dominated by local companies focusing on local clients. According to Statista, internet usage penetration rose from 64% to 79% between 2017 and 2021, with an estimated 84% of the population utilizing the internet by 2026. In terms of active operators in Bangkok, the most preeminent operator is TruelDC, a unit of the Thai conglomerate Charoen Pokphand Group, with over 9MW of live capacity. The second largest operator is the well-known Japanese outfit of NTT with 5MW of online capacity. Third largest player is SUPERNAP Thailand with 5MW live capacity. SUPERNAP Thailand is a joint venture company between Switch, Siam Commercial Bank, True IDC and Kasikorn Bank. In terms of power and connectivity, both Bangkok and the EEC have high connectivity speeds and typically robust power availability, though power usually improves away from central Bangkok. Land within the Bangkok CBD and fringes is costly and competes with alternative land uses. Outer Bangkok, Samut Prakan, & the EEC area becoming more promising locations for data centre operators due to land access, power accessibility, lower land prices and increasing options to mitigate flood risk. Government highly incentivizing a strong digital infrastructure in Thailand, through the Board of Investment’s tax relief offerings, the ability to own freehold land, waivers on machinery imports and VAT exemptions.

ECOSYSTEM DEVELOPMENTS • Alibaba Cloud opened a new cloud region in Bangkok, initially with one availability zone available. • AWS announced plans to invest an estimated $5 billion in Thailand over 15 years. The new AWS Asia Pacific (Bangkok) Region will consist of three availability zones, adding to AWS’s existing 87 Availability Zones across 27 geographic regions. • Singapore-based Bridge Data Centres has acquired a 450KW server facility in Samut Prakan, south of Bangkok, signalling its continued expansion in the ASEAN region. • Google announced plans in August to launch its first cloud region in Thailand • Huawei Digital Power Thailand has joined hands with Planet Communications Asia Plc. (PlanetComm) , to penetrate the data centre market in Thailand via the deployment of their FusionDC1000A, a prefabricated, all-in one (AiO) data centre solution. • Raimon Land , a luxury commercial and residential Thailand-based developer, has partnered with California-based Nautilus Data Technologies to develop water-borne, water-cooled data centre facilities. The partnership is in its early stages as sites are evaluated. • The Thai Cabinet granted data centres a tax (VAT) exemption in principle in the draft Royal Decree in September. However, the exemption has been granted in principle, the Thai VAT rate is still levied at 7% currently.