Thailand's True IDC seeks US$2 billion loan to fund new data center near Bangkok

True Internet Data Center Co., Ltd. (True IDC), one of Thailand's largest data center platforms, is in early-stage talks with banks to secure a loan of approximately US$2 billion to build a new data center near Bangkok, according to sources familiar with the matter.

The proposed five-year facility would be structured in three tranches, with US$1.8 billion denominated in US dollars and the remainder in Thai baht. The sources cautioned that negotiations remain preliminary and terms could change as discussions progress.

The fundraising effort comes as Thailand cements its position as one of Southeast Asia's most active markets for data center investment. Last month, True IDC broke ground on its seventh data center in northern Bangkok and announced a continued investment program exceeding 6 billion baht for the facility.

The company's expansion push is backed by strong market fundamentals. According to Thanasorn Jaidee, Managing Director of True IDC, investments in AI and generative AI across the Asia-Pacific region are projected to grow fivefold, reaching 11 trillion baht by 2029, representing an average annual growth rate of 38.4 per cent. "However, a major challenge for businesses today is accessing AI Hyperscale-level infrastructure capable of fully supporting advanced processing," he said during the groundbreaking ceremony. "Our goal is to build a world-class data center to support such infrastructure."

Thailand has emerged as a magnet for hyperscale and AI-driven data center projects in recent months. In June, the country's Board of Investment approved US$1.99 billion (66.3 billion baht) in new investments, largely concentrated in high-tech sectors including artificial intelligence, advanced electronics, and clean energy, with East Asian companies leading the charge. In May, the government greenlit 958 billion baht (US$29 billion) worth of investment projects, including a planned data center infrastructure expansion by TikTok System (Thailand) Co.

Global tech giants are already deepening their footprint in the country. Alphabet Inc.'s Google, Amazon.com Inc., and Microsoft Corp. have all established operations in Thailand, underscoring the nation's strategic importance as a regional digital hub.

True IDC, a subsidiary of Thai conglomerate Charoen Pokphand Group, currently operates four data centers in Thailand and one in Myanmar, according to its website. The company claims to have the largest power capacity in the country, exceeding 150 megawatts, positioning it as a key player in the region's rapidly evolving digital infrastructure landscape.

True IDC did not respond to a request for comment on the loan negotiations.