THAILAND Trends and Developments Contributed by: Nuchaya Timrat, Naris Asavathongkul and Piyachai Wijitvongtong, Baker McKenzie
AI as a tool in M&A Generative AI has begun to make substantial inroads into a variety of businesses and activi- ties, among which are mergers and acquisi- tions. Gen AI integration is increasingly useful throughout the M&A lifecycle, from screening and selecting targets to expediting the due dili- gence process. Its ability to assess market data and review enormous volumes of papers and information allows it to derive important insights, from deal-making to completion. As AI technologies advance, their integration into M&A processes is likely to grow increasing- ly complex. As of today, AI has begun to serve as a valuable resource for dealmakers, and we anticipate that in the future, AI will play an even greater role in the M&A scene. Data Centres on the Rise in Thailand As the global economy grows more digitally inte- grated, an organisation’s capacity to properly store, organise, and analyse data has become a critical component of efficiency and a key com- petency for businesses worldwide. This require- ment is exacerbated by the growing influence of AI, which not only fosters innovation but also drives up demand for massive data storage and compilation. Market demand for these data centres has been increasing along with the standardisation of flexible working arrangements, a developing digital economy, and robust consumer appetite for streaming and cloud services. Data centres are projected to be a highlight for investors, particularly after a tumultuous start to the dec- ade. This trend is especially true for Thailand, which is swiftly establishing itself as a regional data centre powerhouse due to its infrastructure readiness.
One of the most significant challenges for data centres is the availability of power and proper access to land. Data centres can take up to mil- lions of square metres and consume an average of 1,000 kWh per square metre. Consequently, these requirements have slowed the expan- sion of data centres in several Southeast Asian markets, including Singapore, which has been quoted as the world’s most constrained data centre market, with CBRE estimating that the Asian city-state has less than 4MW of available capacity and a record-low vacancy rate of less than 2%. Thailand, on the other hand, is mostly unaffected by this obstacle because the country’s power infrastructure is capable of producing large amounts of electricity, and various industrial land plots have been made ready for the establish- ment of data centres. Thailand appears to be an appealing option for international data centre operators, given its strategic location in the core of ASEAN markets. Thailand has expertly posi- tioned itself in this area, demonstrating a high level of digital capabilities. This sector’s rapid expansion has been aided in part by strong government support, particularly from the Ministry of Digital Economy and Society (MDES) and the Thailand Board of Investment (BOI), which aim to lure significant tech invest- ment into the country through various incentive packages. This exponential development and growth is widely evidenced by the apparent inflow of for- eign investment in data centre establishment from various multinational players. Recently, there have been reports that Alphabet Inc. (Google) is planning to invest approximately USD1 billion to establish Google’s first new data centre project in Thailand. It is projected that this
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