Gulf Energy invests $271M in data center expansion, following Binance TH’s expansion. Southeast Asia is demanding more cloud computing and AI services.
Sarath Ratanavadi, Thailand’s second-richest individual and an energy tycoon, is intensifying his efforts to establish data centers.
This move aims to capitalize on the growing market for cloud computing and artificial intelligence.
The expansion is a direct result of Gulf Energy’s successful entry into digital assets through Gulf Binance Co., a joint venture with a Binance subsidiary.
Strategic Expansion into Data Centers and Market Outlook
Gulf Innova Co. Ltd. and a Binance subsidiary formed Gulf Binance Co. in January, which launched Binance TH.
The public was granted access to this platform in May 2023 after the necessary licenses and approvals were obtained from Thailand’s Ministry of Finance.
Additionally, Gulf Energy Development Pcl and its partners are currently investing an additional 10 billion baht ($271 million) to expand their data center facility near Bangkok, building on this success.
However, this expansion will increase the center’s energy consumption to 50 megawatts, with completion scheduled for March.
Yupapin Wangviwat, Gulf Energy’s Chief Financial Officer, announced these plans, emphasizing the company’s diversification strategy into cryptocurrency trading, virtual banking, and other technology-related enterprises.
Thailand’s electricity generation is currently experiencing an excess capacity, which has prompted this move.
Meanwhile, Sarath Ratanavadi noted that rising AI usage and cloud computing needs will fuel an increase in demand for data center services.
The expansion is consistent with regional trends, as global tech firms are investing heavily in cloud computing and AI services throughout Southeast Asia.
Binance TH’s Market Expansion
Binance TH, run by Gulf Binance, is increasing its offerings.
On June 8, the exchange disclosed its plan to introduce ten new cryptocurrencies to its trading pairs, including USTC/USDT, LUNA/USDT, and LUNC/USDT.
This action aims to enhance user engagement and address the increasing demand for these tokens among domestic users.
Furthermore, Binance TH is expanding its support for existing tokens on new networks, including ETH on Base, Arbitrum, Optimism, and USDT on various chains.
Moreover, trading for these new pairs is set to begin on June 11, 2024, at 2:00 PM local time.
Significant market events, such as an anticipated resolution between the U.S. Securities and Exchange Commission (SEC) and Terraform Labs, are coinciding with this expansion.