- This venture could serve as a catalyst for increased investment from other Dubai-based companies, Group CEO says
In a significant move towards enhancing digital infrastructure in Southeast Asia, Dubai’s Damac Group has announced a substantial investment of approximately $1 billion through its subsidiary, Edgnex Data Centres.
The initiative aims to develop three to four data centre projects in Thailand, directly responding to the surging demand for cloud and artificial intelligence (AI) services in the region.
Partnering with local data centre provider Proen Corp., Damac’s ambitious plan includes the establishment of a data centre in downtown Bangkok, set to commence operations by March.
Initially boasting a capacity of 5 megawatts, the facility is expected to expand to 20 megawatts, reflecting the anticipated growth in demand for digital services.
The investment follows similar commitments from major tech companies, such as Google, which has pledged $1 billion to establish data centres in Thailand, underscoring the region’s increasing importance as a hub for AI and cloud computing.
Key player
Damac Group’s founder, Hussain Sajwani, told Bloomberg that the investment is not merely about immediate returns; rather, it represents a strategic response to the evolving digital landscape in Southeast Asia, a region that is home to approximately 685 million people.
“As the Thai government intensifies efforts to build a robust digital economy, Damac’s foray into this market symbolises the potential for collaboration and investment within Southeast Asia.”
The planned data centres are poised to cater to various clients, including hyperscalers, AI enterprises, and government institutions, indicating a broad market appeal. With an established pipeline of around 100 megawatts of future capacity, Damac Group is positioning itself as a key player in the region’s technological advancement agenda.
Moreover, Sajwani’s remarks suggest that this venture could serve as a catalyst for increased investment from other Dubai-based companies in Thailand, fostering further economic development.
As demand for digital infrastructure continues to grow, Damac’s strategic investment represents a significant step in supporting the technological ambitions of both Thailand and the broader Southeast Asian market.