EDGNEX Data Centers, a subsidiary of the UAE’s DAMAC Group, has forged a significant joint venture (JV) with Thailand’s Proen, marking a strategic investment exceeding $1 billion (approximately Dh3.67 billion) dedicated to bolstering Thailand’s digital infrastructure. This ambitious partnership aims to enhance the region’s capabilities in advanced artificial intelligence (AI) technology and data processing, reflecting a growing interest among technology firms to expand their footprint in Southeast Asia’s burgeoning market. With EDGNEX holding a majority stake of 70% in the JV, it will take on the responsibility for the day-to-day operations of the data centers established under this collaboration.
Set to support the digital transformation of Southeast Asia, the first phase of this data center project will commence with a power capacity of 5 megawatts (MW) and is anticipated to begin operations by early 2025. The formal announcement of this joint venture was made in the presence of senior Thai government officials, including Deputy Prime Minister and Minister of Digital Economy and Society, HE Prasert Chantararuangthong, underscoring the project’s national significance. This data center is positioned to be carrier-neutral, equipped with Tier III uptime certification, ensuring that it meets high reliability standards necessary for clients relying on uninterrupted data service.
This investment by EDGNEX reflects a broader trend within the technology sector, as companies increasingly recognize Southeast Asia’s potential for cloud computing and AI infrastructure development. With a population approaching 685 million, this region presents significant opportunities for technological advancement. The establishment of the Bangkok data center is expected to simultaneously boost Thailand’s economy and align with initiatives aimed at fostering a robust digital economy. This also signifies a strategic pivot towards expanding infrastructure that supports digital innovation.
Hussain Sajwani, the founder of DAMAC, has articulated the company’s vision for a phased growth strategy, targeting not only hyperscalers and AI-driven enterprise needs but also supporting government agency operations. Plans include scaling up future data center capacity to approximately 100 MW, indicating confidence in the demand for digital infrastructure in Thailand. Such a forward-thinking approach aims to create an ecosystem conducive to emerging technologies and cloud services that are critical for the region’s economic development.
In addition to its focus on data centers, DAMAC is actively exploring opportunities for investment in high-end residential projects in Thailand. This diversification strategy indicates DAMAC’s commitment to the Thai market and aligns with the broader objectives of enhancing digital capabilities while also tapping into the burgeoning real estate sector. Sajwani’s enthusiasm highlights the company’s dedication to fostering a supportive environment for Thailand’s digital economy and facilitating infrastructure to nurture a new wave of AI-led businesses.
As the agreement between EDGNEX and Proen signifies a substantial commitment to Thailand’s growth trajectory in digital innovation, it also showcases the potential of collaboration between international firms and local enterprises. This synergy is expected to yield numerous benefits, accommodating the increasing demands for reliable data services in an era where digital transformation is paramount. Ultimately, this joint venture not only reinforces Thailand’s position in the regional digital landscape but also promises to propel the country towards becoming a hub for advanced technology and innovation in Southeast Asia.
