International data centre firms are continuing to invest in Thailand with applications valued at a minimum of 100 billion baht, mainly from existing players expanding their capacities, according to the Board of Investment (BOI).

“This year we expect data centre investment to grow more than last year. Most of the applications are from existing players, mainly from the US, China, Japan and South Korea,” said Suthiket Thatpitak-kul, deputy secretary-general of the BOI.

He said the board will work with related agencies to prepare for renewable energy development and direct power purchase agreements.

Thailand is considered a safe location in the trade war, and the nation is prepared in terms of the digital economy and artificial intelligence (AI), said Mr Suthiket.

During 2021-2023, investment in data centres in Thailand totalled 290 billion baht, according to the BOI.

Mr Suthiket said the BOI plans to increase the ceiling of its matching fund from 50 million baht per company to support high-potential startups in targeted industries.

“We’ll issue more measures to attract startups, particularly in the deep-tech segment,” he said.

Narit Therdsteerasukdi, secretary-general of the BoI, outlined Thailand’s features on Wednesday at a seminar hosted by True Digital Park (TDPK).

“Thailand’s growing startup ecosystem emphasises its potential as a launchpad for global startups,” said Mr Narit.

“Thailand offers three main advantages for startups: its strategic location connecting Southeast Asian nations, China, and the Indo-Pacific; a skilled workforce supported by world-class educational institutions; and government policies and incentives designed to accelerate startup growth.”

The government offers the long-term resident (LTR) visa for skilled professionals and the smart visa for startup founders in targeted industries.

Tarit Nimmanwudipong, general manager of TDPK, said the park worked with the BOI for more than six years to build a strong partnership network, aimed at attracting foreign investors and entrepreneurs to Thailand.

Recently the park was appointed by the BoI as a certified agent to assist foreign nationals in applying for LTR visas and providing comprehensive market-entry support in Thailand.

To streamline this process, the park established the TDPK International Service Center three months ago as a one-stop centre catering to both business and residency needs.

Zak Lawton, head of investment at the British Embassy in Bangkok, said at the seminar that the UK sees Thailand as an increasingly important economic partner due to its growing digital economy, with a 25% annual growth rate.

The UK recognises the potential of Thailand’s young talent, especially in AI and technology, he said.

With investments in data centres and strong university collaboration, Thailand is poised to become a major power in Asia, said Mr Lawton.

The UK sees the importance of digitalising global trade processes to reduce the 32 billion pieces of paper used annually, developing a project with Singapore and Thailand to help businesses adopt digital trade, he said.

The British government funded the project and it is being expanded in conjunction with the Thai government and the Thai Bankers’ Association.

Eric Lauer, trade and investment advisor at the Luxembourg Embassy, said two successful finance initiatives could help Thailand in its pursuit of becoming a regional financial hub, including the collaboration between Thailand and Luxembourg through the Asean Startup Exchange programme on digital technologies.

Kajiwara Toru, minister and chief of the Japanese Embassy’s economic section, said there are several challenges and opportunities for Thai growth, particularly in the transition to a circular economy.

He said Japan addresses air pollution through policies that encourage the replacement of vehicles with more eco-friendly alternatives, and suggested Thailand implement similar strategies.

Credit: Bangkokpost.com

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