DayOne, a Singapore-based data centre company, is pouring US$1 billion into Thailand over a three-year period for data centre development.
If Thailand can reduce the price of electricity to 2.50 baht a unit, which would be the lowest rate in the region, the outlook for the data centre business would be even better, the company said.
Former prime minister Thaksin Shinawatra, the de facto leader of the governing Pheu Thai Party, said recently that the government led by his daughter wants to slash electricity costs by next year to become a hub for data centres and artificial intelligence infrastructure.
He suggested a price of 2.50 baht a unit (kilowatt/hour), a dramatic drop from the current rate of 4.15 baht. He did not say how this would be accomplished.
The DayOne investment in Thailand is the second-largest in its data centre portfolio after an operation in Malaysia.
The company decided to invest in Thailand as part of its global platform data centre services, thanks to the government’s supportive policy, the country’s expanding digital economy and connectivity with Indochina, as well as the supply chain of vendors and talent, said chief executive Jamie Khoo.
The company has received approval from the Board of Investment for its $1-billion investment in data centre development with capacity totalling 180 megawatts.
The first phase of development is scheduled to be completed in the second quarter of 2026, while the second phase is under review but might begin in early 2027.
The data centre will be located at the Amata City Chonburi Industrial Estate, where the company held a groundbreaking ceremony on Monday.
DayOne has data centres in key Asian markets, including Singapore, Johor (Malaysia), Batam (Indonesia), Greater Bangkok, Hong Kong and Tokyo, according to the company.
“We intend to focus on Southeast Asia and later expand globally,” said Ms Khoo.
The company has a comparative advantage in terms of being cost-competitive, using a modular design that helps it accomplish the building of data centres quickly.
The company targets both US and non-US customers, mainly cloud service providers, social media platforms and e-commerce operators.
Although the global tech giants have built data centres in Thailand, they also need to diversify locations and DayOne is able to provide hosted equipment for their services, Ms Khoo added.
“For Thailand to build a thriving digital hub, it takes more than infrastructure — it requires clear policies, strong data protection and a commitment to fostering seamless connections across borders,” she said.
Ms Khoo said that if Thailand could cut the price of electricity to 2.50 baht a unit, it would be the lowest price in the region — even lower than the rates charged in Singapore and Malaysia.
“By lowering the tariff, it would attract more digital and computing businesses,” said Ms Khoo.
Moreover, the country needs to have clear cross-border data flow policies. Having well-defined regulations on the movement of data across Southeast Asia would help businesses operate smoothly across borders, she added.
This includes policies on data ownership and processing, which are crucial for businesses, especially in the digital world.