The Damac Group, a Dubai-based property developer, has announced plans to invest $1 billion in multiple data centre projects across Thailand.

This move marks a significant expansion of the company's digital infrastructure ambitions into Southeast Asia.

Edgnex Data Centers, a subsidiary of Damac, will spearhead the initiative through a joint venture with Thai firm Proen Corp. Edgnex is set to hold a 70 per cent stake in the partnership and will oversee the data centres' operations.

The investment aims to establish facilities with a total potential capacity of 20 megawatts (MW). The first phase, offering 5 MW of capacity, is scheduled to be operational in early 2025. This initial data centre will be a carrier-neutral facility with Tier III uptime certification.

Hussain Sajwani, founder of Damac Group, expressed enthusiasm for the project, stating, "We are excited to expand our investment further into Southeast Asia and specifically into Thailand, a country that has shown immense potential for growth in digital innovation and smart technologies."

The move comes as global tech giants increasingly focus on building cloud and artificial intelligence infrastructure in the region. Google recently announced its own $1 billion investment in Thai data centres, highlighting the growing importance of the market.

Sajwani emphasised the strategic nature of the investment, adding, "We aim to support Thailand's growing digital economy and provide the necessary infrastructure for the next generation of AI-driven businesses."

The data centre market in the Asia-Pacific region is projected to grow significantly, with capacity estimated to reach 23,200 MW by 2029, up from 14,270 MW in 2024.

Damac's expansion into Thailand could pave the way for other Dubai-based companies to invest in the Southeast Asian country. Sajwani also hinted at potential investments in high-end residential projects, further diversifying the group's portfolio in Thailand.

The first Bangkok data centre is set to be located in the downtown area, with plans to gradually expand capacity in line with growing demand. Potential clients include hyperscalers, AI-related businesses, and government agencies, reflecting the broad appeal of Thailand's burgeoning digital economy.

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