Data centres thriving on rising local risk awareness

4 Apr, 2011
Source: Bangkok Post

Unpredictable natural disasters and concern about political risk are driving growing demand for data centre services in Thailand this year, with major providers embarking on additional investments worth at least 300 million baht.

TCC Technology, the country's leading commercial data centre service provider, is spending 200 million baht to build two data centres in Bangkok and Cambodia to tap increasing demand for its services.

Managing director Kosit Suksingha said the Cambodia project was the company's first outside of Thailand, and expansion to Vietnam was in the pipeline.

Data centre services enable organisations to improve cost-efficiency across complex business environments and reduce risks.

Mr Kosit said the National Science and Technology Development Agency (NSTDA) estimated the data and disaster recovery centre market was worth 5 billion baht last year. The figure is expected to increase to 6.9 billion this year.

TCC, a subsidiary of T.C.C Group founded by liquor tycoon Charoen Sirivadhanabhakdi, expects its revenue to grow by 30% this year, he added.

TOT Plc, meanwhile, is spending 30 million baht to open its third and fourth data centres in Hat Yai and at Map Ta Put industrial estate. Its second service centre is now being utilised at 70% capacity.

Morakot Thienmontree, senior executive vice-president for marketing of TOT, said the state telecom enterprise was also looking to expand into the northern and northeastern provinces.

She said the political unrest in Bangkok last year and recent natural disasters were increasing the awareness of data centre services. TOT's revenue from data services almost doubled last year, mainly from government agencies and corporate clients in Bangkok.

True Internet Data Center, meanwhile, plans to invest 70-80 million baht to expand its data centre at Muang Thong Thani to 900 square metres from 500.

General manager Janewit Kraprayoon said the company's strength in central business district areas such as Silom, Sathon and Ratchaprasong was the key factor in its customers' decisions to use the service.