Edgnex Data Centers, subsidiary of Damac Group, has announced a $1 billion investment into Thailand’s data infrastructure. In a major move to tap into the region’s growing cloud and AI sectors, Edgnex has partnered with local provider Proen Corp. This will be Edgnex’s first venture in Southeast Asia, marking a significant milestone in the region’s burgeoning technological expansion.

Bangkok Data Centre by 2024

The initial phase of the project includes a 5-megawatt data centre in Bangkok, expected to go live in March 2024. The centre will be gradually scaled up to 20 megawatts over time. Overall, Edgnex aims to invest over 32 billion baht (around $1 billion) across three to four data centre projects in Thailand under this joint venture.

Riding the AI and Cloud Wave

Damac’s investment mirrors the broader trend of tech giants such as Google and Microsoft entering the Southeast Asian market. With a population of 685 million and rising demand for AI-driven services, the region is becoming a hotspot for cloud infrastructure expansion. Hussain Sajwani, Damac Group’s founder, emphasized that the company will increase capacity as demand grows, in line with Thailand’s digital economy goals.

Targeting Hyperscalers and AI Businesses

The data centres will cater to hyperscale cloud operators, AI-driven businesses, and government agencies. Damac’s planned capacity extends to 100 megawatts, highlighting its ambition to support the region’s digital transformation. This investment could also pave the way for other Dubai-based firms eyeing opportunities in Southeast Asia.