Google Announces US$1 Billion Investment in Thailand to Boost AI Expansion

Google plans to invest US$1 billion in building data centres in Thailand. The investment could potentially add US$4 billion to Thailand's economy by 2029. Major tech companies like Apple, Microsoft, Nvidia, and Amazon are also expanding AI data centres in Southeast Asia.

Credit: Google

The tech giant plans to establish facilities in Bangkok and Chonburi, with projections indicating a potential US$4 billion boost to Thailand's economy by 2029 and the creation of 14,000 jobs annually over the next five years, as per a Deloitte study cited by Google on Monday.

The investment initiative was disclosed by Google and Paetongtarn Shinawatra, Thailand's recently appointed prime minister, highlighting the region's efforts to attract foreign tech companies. Once viewed as a tech backwater, the area with approximately 675 million inhabitants is swiftly emerging as a growth prospect for major players like Apple Inc., Microsoft Corp., Nvidia Corp., and Amazon.com Inc., all of whom are channelling billions of dollars into expanding AI data centres across Thailand, Malaysia, Singapore, and Indonesia.

Alphabet's Chief Investment Officer, Ruth Porat, expressed, "We are investing in cloud regions, data centres and subsea cables across the region, building on our many years of work to bring cloud infrastructure closer to the people and organisations here." She further added, "This region holds great potential."

Google has already disclosed substantial investments in Malaysia and Singapore this year, while Amazon revealed a US$9 billion commitment in Singapore in May. Microsoft's CEO, Satya Nadella, also outlined plans involving around US$4 billion to establish data centres and other infrastructure in the region.

Governments worldwide are navigating the delicate balance between safeguarding digital sovereignty and attracting foreign investments. They aim to retain control over citizens' data, nurture local tech enterprises, and leverage the investment capabilities and expertise of global corporations to fortify AI and cloud infrastructure.

The new data centre capacity in Thailand will fortify Google's AI-powered services like search, maps, and workspace. Having established a presence in Thailand 13 years ago, Google reports having trained over 3.6 million individuals in digital skills, including students, educators, developers, and small to medium-sized businesses, over the past five years.

Paetongtarn highlighted that Google's investment aligns with the country's cloud strategies, stating that it will "accelerate the development of innovative digital services and in turn unlock economic opportunities."

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• Google plans to invest US$1 billion in building data centres in Thailand.

• The investment could potentially add US$4 billion to Thailand's economy by 2029.

• Major tech companies like Apple, Microsoft, Nvidia, and Amazon are also expanding AI data centres in Southeast Asia.

Source: YAHOO