Samsung C&T's construction division has announced plans to establish a subsidiary in Thailand, signaling a major push into the burgeoning Southeast Asian data center market.
The timing of this move is driven by an explosion in demand for digital infrastructure. According to a Cushman & Wakefield report, the Asia-Pacific data center pipeline is set for a record 19.4 GW in 2025, with Southeast Asia leading construction. Bangkok alone has a visible pipeline of over 1,000 MW in planned or under-construction capacity, presenting a clear and substantial opportunity for EPC developers like Samsung.
So, why Thailand specifically? Several key factors have aligned to make it an ideal hub. First, the Thai government has actively reduced major hurdles for data center development. In late 2025, it authorized direct power sales to large-scale data centers and introduced a green tariff program, simplifying PPA negotiations and ensuring access to renewable energy. Second, the world’s biggest cloud providers, or hyperscalers, have established a strong presence. Google and AWS have already launched their Bangkok regions, with Microsoft also announcing plans. This creates a foundational layer of demand. Third, a massive capital commitment from TikTok, with a ~$25 billion data infrastructure plan approved in May 2026, solidifies Thailand's long-term demand for large-scale data campuses.
This decision is also a strategic response to domestic competition. Peers like Daewoo E&C and Hanmi Global are formalizing their own data center ambitions, increasing the urgency for Samsung C&T to plant its flag in high-growth markets. By establishing a local entity, Samsung can more effectively compete for contracts from hyperscalers who are ready to invest.
Furthermore, Samsung C&T is well-prepared for this expansion. The company has recent, relevant experience, such as the Ansan Global Cloud Center project in Korea, and has developed advanced immersion cooling technologies. This technical expertise enhances its credibility, particularly for building the high-density facilities required for modern AI workloads. The market has already recognized this potential, with Samsung C&T's stock price and valuation multiples rising significantly in the first half of 2026, reflecting investor confidence in its new data center strategy.
- EPC (Engineering, Procurement, and Construction): A type of construction contract where a single company is responsible for the design, material sourcing, and building of a project.
- Hyperscaler: A large-scale cloud service provider that offers massive computing infrastructure, such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure.
- PPA (Power Purchase Agreement): A long-term contract between an electricity generator and a customer, typically used to secure stable energy prices for large projects.