Pandemic Boosts Demand for Data Centers and Cloud Services

The COVID-19 pandemic has accelerated digital adaptation among Thai organizations and citizens as they increasingly turn to online tools for healthcare, remote working and business transactions. The trend has driven a demand for data centers and cloud services which has been underpinned by changes to the global business environment and compliance with new legislation aimed at improving the efficiency and security of Thailand’s digital economy.

Mobile applications and online platforms have proven extremely useful in helping the government communicate and deliver services during the pandemic, with people registering for vaccinations, and the Ministry of Public Health and hospitals connecting their databases through an integrated backend system. Government agencies and businesses also effectively adopted work-from-home measures, while the spending of Thai consumers on e-commerce, ride hailing, and food delivery services further bolstered the demand.

High Internet Penetration a Boon

As lockdown restrictions also led consumers to stay at home and spend more time on mobile devices or computers, a growth was recorded in the purchase of goods and services online.

Thailand was ranked fifth globally for using QR codes, with a 60% penetration of the country’s internet users in December 2020. According to the report, Thailand also recorded the highest number of transactions through mobile banking and financial transaction apps in 2020, possibly due to the government’s digital co-payment scheme as part of a relief package for people affected by the pandemic.

Government Uses Online Tools for Services

Apart from the private sector, government agencies also contributed to the growth of cloud and data center markets as government agencies adopted online services under the e-government policy. The government has also implemented many relief packages since 2020 when the pandemic hit Thailand hard. These measures include, for example, the co-payment of goods and services, cash-handouts for lower income groups, and a state welfare card scheme, all of which require huge data traffic as millions of people are eligible for receiving state assistance.