Edgnex Data Centre and Proen Corp have formed a JV to invest $962mn in Thailand’s digital infrastructure, aiming to compete with regional peers. The partnership will strengthen Proen’s market position and expand its offerings, focusing on sustainability and innovation to boost Thailand’s tech industry.
Key View
- Edgnex Data Centre, under DAMAC Group (DAMAC), has announced a joint venture (JV) with Proen Corp (Proen) to invest over USD962mn into Thailand’s digital infrastructure.
- We the believe the JV will allow Proen to densify its current market position, whilst contributing towards Thailand competing effectively to regional peers such as Malaysia and Indonesia.
- JVs with large volumes of capital to regularly deploy, will increasingly dominate the digital infrastructure space, shifting capital away from tier-1 markets to more resource-abundant areas.
Since the start of 2024, Thailand has received at least USD3bn committed in investments towards solely data centres and AI infrastructure from large cloud service providers (CSPs) such as Google and Microsoft, with DAMAC’s investment appending to this series. In September 2024, Google announced plans to develop data centre infrastructure in Bangkok, as well as in Choburi. Currently, the entirety of live capacity is concentrated in Bangkok, however, comparative to Chonburi, Bangkok’s planned capacity remains subdued.
The 150MW of planned capacity in Chonburi, which is entirely made up by a project between CtrlS and NT, greatly surpasses the 15MW in Bangkok, with the attraction derived from more readily available space, relatively high operating costs in Bangkok and the proximity to industrial estates such as WHA CIE 1 and WHA CIE 2, which house electricity facilities, natural gas pipelines and Water Treatment Plants. Compared to leading regional peers, Thailand present only one additional sub-market, indicating that the country is less saturated that Indonesia and Malaysia.
The JV will assist Proen to expand its operations in scale, to remain competitive in a saturated market and to densify its current market position by bringing more capacity to market. With the financial backing from DAMAC, coupled with the government initiatives placed on Thailand’s digital economy, we believe that Proen can increase its presence in the Thai data centre market against local leaders such as True IDC.
Proen Corp, a leading tech company in Thailand, has announced a strategic joint venture aimed at enhancing its competitive edge in the burgeoning data centre industry. This collaboration is set to bolster Proen Corp’s capabilities in delivering cutting-edge data solutions to meet the increasing demand for robust infrastructure in the digital era. By leveraging advanced technologies and shared expertise, the venture seeks to address growing business needs across various sectors, thus strengthening Thailand’s position as a regional technology hub.
The joint venture emphasizes not only the expansion of infrastructure but also a commitment to sustainability and innovation. It aligns with Proen Corp’s vision of providing scalable and energy-efficient data solutions. This aligns with the global push towards greener technologies, thereby offering businesses in Thailand more environmentally responsible options. By optimizing operational efficiencies, the partnership aims to reduce costs and enhance performance, significantly benefiting Proen’s diverse client base.
Furthermore, this collaboration is expected to accelerate Proen Corp’s growth, offering new opportunities in cybersecurity, cloud services, and data management. Such enhanced offerings will allow the company to cater to a broader range of industries, from finance to telecommunications. As a result, Proen Corp is not only poised to increase its market share but also to lead the charge in transforming Thailand’s digital landscape, aligning the country with global technological trends.
Source : Data Centre Joint Venture To Bolster Competitiveness Of Proen Corp In Thailand