As a part of its efforts to expand its presence in Southeast Asia, Google has committed $1 billion to construct a brand new data center in Thailand. The investment is a component of the corporate’s strategy to fulfill the growing demand for cloud services and artificial intelligence (AI) within the region.
The investment also marks Google Cloud’s first physical presence in Thailand. Thai Prime Minister Paetongtarn Shinawatra said the investment reflects Thailand’s efforts to draw foreign technology firms.
Although the region of about 675 million people is perceived as a technology laggard, major firms similar to Apple, Microsoft, Nvidia and Amazon, that are investing billions to strengthen AI data centers, increasingly see it as a growth opportunity in Thailand, Malaysia, Singapore and Indonesia.
Job creation and economic growth due to Google investments
Google will construct recent facilities in Chonburi and Bangkok. The data center can be situated in Chonburi, while cloud services can be situated within the capital.
This investment is anticipated to contribute $4 billion to the Thai economy by 2029. It could also create a median of 14,000 recent jobs per 12 months by 2029, based on Deloitte forecasts.
The high-capacity data center in Thailand can be key support for Google’s AI-based services similar to search, mapping and productivity tools. Google has been operating in Thailand for 13 years and is committed to improving digital skills, training greater than 3.6 million people within the last five years.
This large investment is a component of the Thai government’s policy to advertise the event of cloud computing. It is anticipated to be a catalyst for accelerating digital innovation and unlocking broader economic opportunities.
A surge in investment in Thailand’s technology sector
In May, Microsoft announced the launch of its first regional data center in Thailand to enhance the provision of cloud and artificial intelligence services. CEO Satya Nadella emphasized that this initiative will provide world-class AI infrastructure.
Similarly, Amazon announced the establishment of a brand new AWS Asia Pacific region in Bangkok as a part of a $5 billion investment, with the information center expected to be operational in early 2025. Additionally, Amazon plans to coach over 50,000 people in Thailand.
Significant investments by Amazon, Google and Microsoft support the “Ignite Thailand” mission, which goals to spice up the country’s digital economy and technological innovation by 2030. Former Prime Minister Srettha Thavisin said the vision is to position Thailand as a regional center for developing the digital economy, while promoting innovation and research and development (R&D). According to research firm Kearney, AI technology could contribute almost $1 trillion to Southeast Asia’s GDP by 2030, with Thailand potentially securing $117 billion of that quantity.
