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TICON and ST Telemedia Global Data Centres finalise joint venture partnership with development of first data centre in Thailand

THB 7.3 billion hyperscale facility to serve digital needs of Greater Bangkok region

Bangkok – Dec 13, 2018 – TICON, which will be renamed Frasers Property (Thailand) Plc., the leading provider of smart industrial platform today announced that they have finalised the joint venture partnership with ST Telemedia Global Data Centres (STT GDC), a leading data centre service provider headquartered in Singapore, on a 51:49 basis. The joint venture, Frasers Property-STT GDC will develop the first data centre on 15 rais of land in Ramkhamhaeng district, situated in the central of Bangkok.

In line with Thailand 4.0 initiative to develop the digital economy in the country, as well as the Thai government’s National Digital Economy Masterplan1 , the digital economy is expected to see robust growth and contribute up to 25% of Thailand’s GDP by 20272 . At the same time, public cloud spending in the Asia Pacific region excluding Japan is expected to grow exponentially at a compound annual growth rate (CAGR) of 32.58%3 between 2016 to 2021. This projected increase in digitalisation and digital transformation is expected to bring about a correspondent increase in demand for digital infrastructure and data centre capacity in Thailand and the region.

Mr. Panote Sirivadhanabhakdi, Chairman of the Executive Committee of TICON Industrial Connection Pcl. (TICON), said, "We believe in market potential of expanding our focus onto developing Thailand’s digital economy and transforming urban living with Smart Cities. Developing digital infrastructure in the form of state-of-the-art data centre is one of the key investments we are moving to embark into this new economy. We are delighted to partner with a reputed global player like STT GDC in this joint venture, and believe the combined strengths of both companies will allow us to best serve the digital growth plans of the customers."

Mr. Sopon Racharaksa, President of TICON Industrial Connection Plc. (TICON), added, "We have been serving Thailand’s industrial needs with our international standard quality of the industrials properties for more than 28 years. This joint venture partnership will broaden TICON’s digital and technology service to our existing offerings. We are confident that with our long-term experience in industrial properties development together with STT GDC’s world class expertise in data centre development will create synergies and brings high potential for growth in the data centre business in Thailand."

Mr. Bruno Lopez, Group Chief Executive Officer of STT GDC, said, "This development marks STT GDC’s first foray into the Thai data centre market, and will strengthen our expanding network across major data centre markets around the world. With our ‘think global, act local’ mantra, we believe that TICON, with their rich legacy and successful operating history in the country, will be valuable partners in our new venture. We are confident that with our expertise in designing, building and operating data centres to the highest global standards in key markets such as Singapore, China, India and the UK, as well as the local expertise of TICON in understanding the needs of the Thai market and navigating its regulatory environment, we will be able to meet the demands of our customers in Thailand, support their digital growth and help them realise the Thailand 4.0 vision."

The estimated investment cost for the hyperscale facility of THB7.3 bn will be deployed in phases. The joint venture company has begun on the development phase of the data centre project that is strategically located on a 15 rai in Ramkhamhaeng, Bangkok. Construction is expected to commence in mid 2019, and is due for completion and service commencement by 2020.

1 Thailand’s Digital Economy: Setting the Pace in ASEAN, Thailand Board of Investment, Sep 2018
2 Thailand’s Digital Economy and Software Industry, Thailand Board of Investment
3 APeJ Public Cloud Services Spending Forecast to Reach $15 Billion in 2018, IDC Reports, Feb 2018