As part of its efforts to expand its presence in Southeast Asia, Google has committed $1 billion to build a new data center in Thailand. This investment aligns with the company's strategy to meet the growing demand for cloud services and artificial intelligence (AI) in 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 attract foreign technology companies.
Although the region, with a population of about 675 million, has been perceived as a technology laggard, it is increasingly seen as a growth opportunity by major companies such as Apple, Microsoft, Nvidia and Amazon, which are investing billions to strengthen AI data centers in Thailand, Malaysia, Singapore and Indonesia.
Job Creation and Economic Growth with Google's Investment
Google will build new facilities in Chonburi and Bangkok. The data center will be located in Chonburi, while cloud services will be based in the capital.
The investment is expected to contribute $4 billion to Thailand's economy by 2029. It also has the potential to create an average of 14,000 new jobs annually through 2029, according to Deloitte projections.
The high-capacity data center in Thailand will be a key support for Google's AI-based services, such as search, mapping and productivity tools. Google has been operating in Thailand for 13 years and is committed to improving digital literacy by training more than 3.6 million people over the past five years.
This major investment is in line with the Thai government's policy to promote the development of cloud computing. It is expected to serve as a catalyst for accelerating digital innovation and unlocking broader economic opportunities.
Investment Surge in Thailand's Tech Sector
In May, Microsoft announced the launch of its first regional data center in Thailand to improve the availability of cloud services and AI. CEO Satya Nadella emphasized that this initiative will provide world-class AI infrastructure.
Similarly, Amazon announced the establishment of a new AWS Asia Pacific region in Bangkok as part of a $5 billion investment, with the data center expected to be operational by early 2025. In addition, Amazon plans to train more than 50,000 people in Thailand.
The significant investments by Amazon, Google, and Microsoft support the "Ignite Thailand" mission, which aims to boost 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 hub for the digital economy, while promoting innovation and research and development (R&D). According to research firm Kearney, AI technology could contribute nearly $1 trillion to Southeast Asia's GDP by 2030, with Thailand potentially securing $117 billion of that total.
