ST Telemedia Global Data Centres (STT GDC) has finalised a joint venture partnership with Ticon, marking the Singapore-based data centre service provider’s first foray into the data centre market in Thailand.
The joint venture is part of a 49:51 agreement with STT GDC a minority stakeholder, with 49 per cent while Ticon holds 51 per cent.
Currently in its development phase, the data centre project is located on a 75,000 square metre (15-rai) in the Ramkhamhaeng district of central Bangkok, with construction expected to commence in mid-year of 2019 and due for completion and service commencement by 2020.
“This development marks STT GDC’s first foray into the Thai data centre market, and will strengthen our expanding network across major data centre markets around the world,” said Bruno Lopez, group chief executive officer of STT GDC.
“With our ‘think global, act local’ mantra, we believe that Ticon, with their rich legacy and successful operating history in the country, will be valuable partners in our new venture.
“We are confident that with our expertise in designing, building and operating data centres to the highest global standards in key markets such as Singapore, China, India and the UK, as well as the local expertise of Ticon in understanding the needs of the Thai market and navigating its regulatory environment, we will be able to meet the demands of our customers in Thailand, support their digital growth and help them realise the Thailand 4.0 vision."
Thailand’s digital economy is expected to see robust growth and contribute up to 25 per cent of Thailand’s GDP by 2027, according to Thailand’s Board of Investment.
At the same time, IDC foresees that public cloud spending in the Asia Pacific region, excluding Japan, is expected to grow exponentially at a compound annual growth rate (CAGR) of 32.58 per cent between 2016 to 2021.
This projected increase in digitisation and digital transformation is expected to bring about a correspondent increase in demand for digital infrastructure and data centre capacity in Thailand.
“We believe in the market potential of expanding our focus into developing Thailand’s digital economy and transforming urban living with Smart Cities,” said Panote Sirivadhanabhakdi, chairman of the executive committee of Ticon Industrial Connection (Ticon).
“Developing digital infrastructure in the form of state-of-the-art data centres is one of the key investment areas we are embarking on in this new economy.
“We are delighted to partner with a reputed global player like STT GDC in this joint venture, and believe the combined strengths of both companies will allow us to best serve the digital growth plans of our customers."
STT GDC recently revealed plans to construct their largest data centre facility to date in Singapore and its seventh locally, which is due for completion by mid-2020.
The STT Loyang facility in Singapore is expected to cost is excess of an estimated $350 million with the construction of the five story facility expected to begin in early 2019.