Google, a subsidiary of Alphabet Inc., announced a $1 billion investment in Thailand, marking the latest expansion of cloud and artificial intelligence (AI) infrastructure in Southeast Asia, Bloomberg reports.
The company will build new data centers in Bangkok and Chonburi, a province southeast of the capital, solidifying its presence in a region rapidly becoming a tech hub.
This investment is expected to generate a significant economic impact, adding an estimated $4 billion to Thailand’s economy by 2029 and creating 14,000 jobs annually over the next five years, according to a Deloitte study.
The announcement was made jointly by Google and Thailand’s newly appointed Prime Minister, Paetongtarn Shinawatra, highlighting the growing interest of Southeast Asian governments in attracting foreign tech firms. The region, home to over 675 million people, is experiencing a surge in investment from global tech giants like Apple, Microsoft, Nvidia, and Amazon, all eager to establish AI data centers and expand their reach.
“We are investing in cloud regions, data centers, and subsea cables across the region, building on our many years of work to bring cloud infrastructure closer to the people and organizations here,” said Alphabet Chief Investment Officer Ruth Porat, emphasizing the potential of the region.
This investment follows similar initiatives by Google in Malaysia and Singapore, where billions of dollars have been allocated this year alone. Amazon, meanwhile, unveiled a $9 billion investment in Singapore in May, and Microsoft CEO Satya Nadella recently announced a road map involving a $4 billion expenditure for data center and infrastructure development across the region.
Governments in the region are navigating a delicate balance between fostering digital sovereignty and attracting foreign investment. While aiming to retain control over their citizens’ data and nurture local tech firms, they are also seeking to leverage the investment power and expertise of global companies to build AI and cloud infrastructure.
Google’s new data centers in Thailand will support its AI-driven services such as search, maps, and workspace. The company, which established its presence in Thailand 13 years ago, has already trained over 3.6 million students, educators, developers, and small and medium businesses in digital skills over the past five years.
Prime Minister Paetongtarn expressed her support for the investment, stating that it aligns with Thailand’s cloud policies and will “accelerate the development of innovative digital services and in turn unlock economic opportunities.”
