Thailand is increasingly asserting its position as a data and cloud services hub in Southeast Asia. TikTok, through its Singapore-based unit, has received approval from the Thai government to invest $3.8 billion in data hosting services.
This digital infrastructure will support the operations of ByteDance affiliates in the country and is scheduled to be operational by 2026, according to the Thailand Board of Investment (BOI) on Wednesday (January 29).
Additionally, the BOI has also approved a ฿3.25 billion project from Siam AI Corporation, Nvidia’s cloud partner in Thailand, which will focus on developing AI-based services.
Tech Giants Eye Thailand
TikTok is not the only major player looking to establish a presence in Thailand as a data and cloud services hub. Companies like Amazon Web Services, Google, and NextDC have also announced similar investments, positioning Thailand as one of the key destinations for digital infrastructure expansion in Southeast Asia.
Narit Therdsteerasukdi, Secretary-General of the Thailand Board of Investment (BOI), emphasized that these investments will strengthen Thailand’s digital ecosystem and accelerate its transformation into a regional innovation hub. Analysis from Macquarie Equity Research have even referred to Thailand as the "next frontier" for the data center industry, citing the country's stable electricity supply and reliable network infrastructure.
However, this surge in investment also presents challenges, particularly the shortage of skilled labor in the tech sector. Despite this, the government continues to push for more foreign investment, as reflected in major commitments from Amazon Web Services ($5 billion over 15 years), Google ($1 billion for a data center in Chon Buri), and Microsoft, which is set to build its first regional data center in Thailand.
TikTok Backs Thailand’s Economy
Amid uncertainty over its operations in the U.S., TikTok has chosen Thailand as its expansion destination, providing a boost to Prime Minister Paetongtarn Shinawatra’s efforts to revive the national economy.
This investment also comes as Thailand seeks to attract more global companies looking to mitigate risks from the U.S.-China trade war, which is expected to escalate under Donald Trump’s leadership.
The move aligns with a surge in foreign investment commitments in Thailand, which rose by 35% in 2024 to ฿1.14 trillion—the highest since 2014. This year, the government aims for at least ฿1 trillion in new investments, reinforcing its ambition to become a leading economic and technology hub in Southeast Asia.