ABB Says AI Transforms Data Center World, Golden Opportunity for Thai SMEs and Startups

As we enter a new era of data centers transforming from simple data storage warehouses into innovation factories in the age of AI influence, the question becomes: why is this happening? Thongchai Hanyavirojanikul, Marketing & Sales Manager for the Thailand cluster at ABB Electrification (Thailand) Limited, provides the answer.

First, let's understand ABB. It is a global engineering company primarily operating in electrical technology and automation (Electrification & Automation), providing design, distribution, and installation services for industrial electrical equipment, energy management systems, electric motors, inverters, and industrial robots, with emphasis on developing sustainable products and solutions.

ABB operates worldwide and has been doing business in Thailand for over 100 years, making Thailand significant in the Asia-Pacific region. Over the past 3-5 years, the company has begun targeting the data center industry, supplying energy infrastructure and electrical equipment to ensure data center stability and reliability.

ABB recognizes the growth potential of the global data center industry, which is experiencing particularly high growth in Thailand and Southeast Asia, with projected growth rates of 7.5-8.5% annually during 2025-2027 due to the digital economy transition.

Why are data centers important and how do they relate to daily Thai life? ABB executives explain that data centers are the critical backbone of digital infrastructure operating behind the scenes of modern Thai daily life, which is now inseparably linked to technology—what's called digital life. They support all types of online activities including applications, social media, banking and financial transactions, and streaming entertainment. All of this data must be stored in data centers to ensure security and rapid transmission of information in various formats to our communication devices.

Currently, global companies including Google and Amazon Web Services have already invested in building data centers in Thailand, and Microsoft is planning similar investments. This confirms that Thailand has become a strategic hub for digital infrastructure in Southeast Asia.

ABB serves as a global partner to Google, Amazon Web Services, and Microsoft in supplying electrical infrastructure and control systems to maintain data center stability at hyperscale levels, including in Thailand.

Thongchai noted that the emergence of artificial intelligence is causing data center growth to surge approximately fourfold. Importantly, AI has transformed data centers from mere data storage facilities into innovation factories. Operations are shifting from simple data storage to emphasizing powerful computational capabilities that drive AI innovation, requiring 4-5 times more electrical power and system capacity.

Thongchai further pointed out that this data center transformation in the AI era will advantage Thai SMEs and startups. The investment by global companies in data centers and the availability of more powerful data center infrastructure creates opportunities for new startups to develop innovations in new forms. These include startups capable of developing AI models for application across industries requiring high efficiency, as well as SMEs and startups creating infrastructure innovations and software development solutions.