Why Are AWS, Google, and TikTok Pouring $16B Into Thailand’s Data Center Market?
Inside the policies, infrastructure, and hyperscaler bets driving Thailand’s $16.1B data center surge and what will determine if the boom delivers on its promise.
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In the first half of 2025, Thailand attracted an unprecedented $16.1 billion in data center investment across 28 projects a 20-fold jump from the same period in 2024, and more than double the entire digital sector investment for all of last year.
Eastern Economic Corridor (EEC) the government-designated zone in Chonburi, Rayong, and Chachoengsao is at the center of this surge.
The expansion is highly concentrated, focusing on AI-ready, hyperscale infrastructure backed by some of the biggest names in technology.
This is not a scattered growth story, but a deliberate push to position Thailand as Southeast Asia’s premier high-tech hub.
The Policy Shift That Changed the Game
The Board of Investment (BOI) has shifted from blanket tax holidays to a tiered incentive system that rewards efficiency and advanced capabilities.
Eight-year corporate income tax exemptions are reserved for projects meeting strict power usage effectiveness (PUE) benchmarks and providing GPU-enabled services for AI workloads.
Projects that don’t meet these thresholds qualify for five-year exemptions.
These incentives come with conditions: investors must submit and implement an economic contribution plan covering workforce training, partnerships with universities, SME integration, and local supply chain development. This approach ensures foreign capital is not only attracted but embedded into the Thai economy.
Why Hyperscalers Are All In
AWS has committed $5 billion through 2037 to build its Thailand cloud region a move projected to add $10 billion to GDP and support 11,000 jobs annually. Google is investing $1 billion in a hyperscale data center in Chonburi. TikTok is deploying $3.8 billion across three provinces. Beijing Haoyang Cloud is developing a 300MW mega-campus in Rayong, its first international project.
These are not just capacity plays; they are strategic positioning moves.
Thailand offers dual-feed power substations, land costs well below Bangkok’s, proximity to submarine cable landing stations, and direct renewable energy access through power purchase agreements.
The Execution Challenge
Thailand’s current operational capacity is about 200MW. Within three years, planned builds are set to quadruple that figure to more than 850MW a scale of construction matched only by the scale of risk.
Timely delivery hinges on securing sufficient renewable power, avoiding transformer and switchgear supply chain delays, and ensuring a skilled workforce to operate giga-campuses.
Risks are already visible: lead times for critical electrical equipment are lengthening, and high-density builds require careful site selection to mitigate environmental and soil stability challenges.
Investor Perspective
Thailand is no longer simply the cheaper alternative to Singapore.
With targeted incentives, infrastructure readiness, and deep hyperscaler commitments, it has evolved into a deliberately policy-engineered AI infrastructure hub.
For investors, the key question has shifted:
Not can Thailand attract capital?
But can it turn this influx into operational, revenue-generating capacity without execution missteps?
If it succeeds, the Eastern Economic Corridor won’t just join the ranks of Southeast Asia’s leading digital hubs it will stand as one of the most influential data center clusters in the region over the next decade.