Thai tax incentives to boost national data centre economy
Wed 4 Mar 2015

The Thai government has announced that it will be offering tax incentives to encourage local and international businesses to establish at least 40 data centres in the country this year.
The setup of these new facilities is expected to require a Bt30 billion investment (approx. £604,000). The government will launch a number of promotional packages through the Board of Investment in order to attract interest from foreign companies looking to partner in joint data centre initiatives with local businesses.
The international partners will enjoy strong tax privileges if they decide to transfer technology into the domestic market. The new investment project also aligns with the current Thai BOI strategy which aims to direct funding into Thai startups and burgeoning national tech firms.
A translation of the current policy reads: “To promote investment […] to develop information technology infrastructure, to enhance efficiency and to reduce costs of doing business which are crucial to the development of Thailand as a centre for regional operating headquarters and information technology…”
The first meeting of the ad hoc committee, chaired by Prime Minister General Prayut Chan-o-cha, will take place next week and aims to draft a new strategy for the future of the country’s digital economy.
Djitt Laowattana, an advisor to the state-appointed panel, said that the data centre industry is one of the key engines of growth for the new digital economy era. He added that the new data centre facilities will be able to meet the growing demand for storage solutions from cloud computing companies, digital businesses and government agencies.
“Every industry is moving to use IT services, which will drive our country’s business value,” said Laowattana.
The state-owned Thai telecom companies TOT and CAT are expected to shift their existing data centre operations to cater to the government’s Finance and Defence ministries.